HomeMy WebLinkAbout11/18/2008, C11 - PROPOSITION 1B 2008-09 APPROPRIATION council M` r4 DM 1118-08
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CITYOF SAN LUIS OBISPO
FROM: Bill Statler, Director of Finance& Information Technology
Debbie Malicoat, Finance Manager
SUBJECT: PROPOSITION 1B 2008-09 APPROPRIATION
CAO RECOMMENDATION
Approve a plan for the use of the City's share of the State's 2008-09 Proposition 1B
appropriation by increasing funding for street reconstruction and resurfacing by$657,700.
DISCUSSION
Overview
The State of California recently announced the application process for cities to receive a share of
the State's 2008-09 appropriation of Proposition 1 B funding for local road maintenance. In order
to receive these funds, the Council must approve a plan for use of the City's share of these funds.
The State's 2008 Budget Act appropriated $187 million, which is available to cities on a first-
come, first-served basis. The City's share, if we file on a timely basis, is $657,700.
Background
Proposition 1 B was approved by voters in November 2006 and provided $19.925 billion in bond
funds for a variety of transportation priorities, including $2 billion for cities and counties to fund
the maintenance and improvement of local transportation facilities. The State's 2007 Budget Act
specified that $550 million be allocated to cities; the City's share of this in 2008-09 was
$711,500. Based on the funding formula, the total to be allocated to cities for 2008-09 is $441
million; however, the State's 2008 Budget Act allocates only $187 million to cities on a first-
come, first-served basis. Accordingly, it is important to file the application as soon as possible to
ensure an early place in the queue.
In order to be eligible to receive a share of the 2008-09 appropriation, cities must meet certain
criteria, including:
1. Received full allocation for the 2007-08 fiscal year
2. Submitted information for the 2007-08 fiscal year allocation
3. Agreed that funds from the 2008-09 fiscal year allocation will be used for projects that are
not currently fully funded with a dedicated funding source or sources
4. .Agreed to encumber fund from the 2008-09 fiscal year allocation before July 1, 2009
5. Complied with specific reporting requirements
Proposition 1 B 2008-09 Appropriation Page 2
The City has already met the first two criteria and is able to comply with the others. In order to
apply for the City's share of the Proposition 1 B allocation of$657,672, the Council must approve
a spending plan for these funds. The City's allocation is restricted for use related to local road
maintenance. As such, staff is recommending an increase to the City's street paving program by
the amount of the Proposition B funds.
This will mean that we have additional resources available to put toward street paving priorities.
This will help offset the $925,000 reduction to the paving program that Council approved in
order to rebalance the 2008-09 budget on September 30, 2008.
ALTERNATIVES
Do not approve a plan for Proposition 1B funds. This alternative is not recommended. State
funding for local street maintenance is available, but on a first-come, first-served basis and the
City should apply for this funding.
CONCURRENCES
Public Works concurs with this recommendation.
FISCAL IMPACT
An additional $657,700 will be available to fund street reconstruction and resurfacing projects.
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T:\Council Agenda Reports\Finance&rr CAR\2008\Proposition 1B 2008-09 Appropriation,CAR 11-I8-08.doc
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