Report - CIP Funding for Transportation Congestion Relief

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City of Colton AGENDA REPORT FOR CITY COUNCIL MEETING OF MARCH 20, 2001 TO: HONORABLE MAYOR AND CITY COUNCIL APPROVAL: HENRY T. GARCIA, CITY MANAGER FROM: AL HOLLIMAN, FINANCE DIRECTO SUBJECT: TRANSPORTATION CONGESTION RELIEF FUND DATE: MARCH 7, 2001 BACKGROUND: AB 2928, also known as the Transportation Congestion Relief Fund, provides approximately $1 billion directly to cities and counties for preservation, maintenance and rehabilitation of the local street and road system. In fiscal year 2000-01 the bill allocated $400 million one-time funds to cities and counties, of which the City of Colton received $337,380.25. Authorization to expend these funds was included in the CIP budget. DISCUSSION/ANALYIS: Unexpected revenue growth in the State of California during the past couple of years has resulted in a surplus of the State's General Fund. A portion of these additional funds has been earmarked for transportation congestion relief. Of the approximately $1 billion earmarked for congestion relief, $400 million has been allocated to cities and counties as one-time funds for the above mentioned purposes. Use of these funds requires a Maintenance of Effort (MOE) be adopted by the City Council, in compliance with Government Code Section 14556.26. This MOE certifies that the City of Colton will maintain its current level of general fund expenditures for transportation purposes, which is calculated on the average over the last three years (1996-97, 1997-98 and 1998-99) of city expenditures from the general fund for street, road and highway purposes. This is a condition of continued funding for the new monies or the city will lose the funding. FINANCIAL IMPACT: The city has received $337,380.25, which is included in the CIP budget approved by Council on February 13, 2001. There is no general fund impact with exception that the city must maintain the level of expenditure for transportation purposes as mentioned in the above section. ENVIRONMENTAL IMPACT: None LEGAL REVIEW: RECOMMENDATION: Adopt Resolution Number R-22-01, and authorize staff to increase the revenue estimate in account number 212-5701 by $337,380.25 and increase appropriations in account numbers 212-6800-6839-3890 (Traffic Signals - Reche Canyon Rd.) by $250,000, 212-6800-6829-3890 (Traffic Signals — Michigan/Mill) $75,000 and 212-6800-6828-3890 ' (Traffic warning' device — Watwood Street) $12,380.25. - - Item # 8