HomeMy WebLinkAbout20B - AA TRAFFIC CONGESTION RELIEF
CITY COUNCil MEETING DATE:
CLERK OF COUNCil USE ONLY:
REQUEST FOR
COUNCIL ACTION
APRIL 16, 2007
TITLE:
APPROVED
D As Recommended
D As Amended
o Ordinance on 1 st Reading
D Ordinance on 20' Reading
D Implementing Resolution
D Set Public Hearing For
APPROPRIATION ADJUSTMENT FOR TRAFFIC
CONGESTION RELIEF MAINTENANCE OF
EFFORT REQUIREMENT
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CITY MANAGER
CONTINUED TO
FILE NUMBER
RECOMMENDED ACTION
Approve an Appropriation Adjustment recognizing $2 million from the State
of California Controllers Office into the Property Tax in Lieu of Vehicle
License Fees account (account no. 11-01-5011-11) and appropriate the same
to the capital outlay account (account no. 11-631-6391) for public works
street rehabilitation in order to meet the State of California's Traffic
Congestion Relief Maintenance of Effort Requirement.
DISCUSSION
The State of California requires municipalities to commit funds from the
General Fund to qualify for different types of state funded programs.
This commitment of funds is referred to as "Maintenance of Effort" (MOE).
The MOE is determined by various factors the State determines relate to
the particular program they are funding. Funding from the State for the
Traffic Congestion Relief program funded by Proposition 42 revenues
requires a MOE based on a three year spending trend for various street
maintenance/rehabilitation expenditures. If an agency fails to spend the
required MaE amount in the timeline established by the State they will
not receive their allocated Proposition 42 funds and may have to give
back funds already received.
The State just completed an audit of the City's MaE for the Traffic
Congestion Relief program and determined the City's calculation of its
Traffic Congestion Relief MaE did not include all the required
expenditures. To meet the MaE requirements for the last two fiscal years
the City needs to expend an additional $2 million for street
maintenance/rehabilitation from the General Fund by June 30, 2007. Due
to time constraints, projects budgeted to be funded by Gas Tax revenues
will be funded by the General Fund. Those projects are Civic Center Dr.
Fairview to Flower for $1 million; Main Street 8th to 18th for $300,000;
and Broadway, Civic Center to First St for $700,000. The budgeted funds
not expended with Gas Tax revenue will be re-appropriated for street
projects in fiscal year 2007/08.
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MOE Appropriation Adjustment
April 16, 2007
Page 2
FISCAL IMPACT
The appropriation adjustment will enhance the Property Tax in Lieu of
Vehicle License Fee revenue account (account no. 011-5011-100) by $2
million and increase the capital outlay expenditure account (account no.
11-631-6391) by the same.
APPROVED AS TO FUNDS AND ACCOUNTS:
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fjU'rancisco
Executive
Finance &.
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Gutierrez
Director
Management Services Agency
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