In 2017, the Montana State Legislature passed House Bill 473 to increase the fuel tax and fund highway and local road projects with the new revenue.  The Montana Department of Transportation must allocate Bridge and Road Safety and Accountability (BaRSaA) funds to each city, town, county, and consolidated city-county government in Montana by March 1 of each year.  The City of Billings BaRSaA allocation for 2018 is $655,684.20 and is based on a partial year as the new fuel tax was not effective until July 1, 2017.  A match of $1 of local government funds for each $20 of BaRSaA funds requested is required and requests for distribution of the allocation must be made to the Montana Department of Transportation between March 1 and November 1 of the year the funds were allocated.   The 2018 distribution will be used to offset a portion of the costs of the 2018 street overlay and crackseal projects.  Arterial construction fees of $25,000 and street maintenance district assessments of $7,784.21 will be used as the local match.  An amount equal to the 2018 BaRSaA allocation of $655,684.20 will be held in a gas tax cash reserve account for the future construction of the inner belt loop which is scheduled for construction in FY 2022 per the FY 2019 - FY 2023 capital improvement plan approved by City Council.

City Council may:

• Approve the resolution requesting distribution of Bridge and Road Safety and Accountability program funds in the amount of $655,684.20 or;
• Not approve the resolution requesting distribution of the Bridge and Road Safety and Accountability program funds.

The 2018 BaRSaA distribution in the amount of $655,684.20 requires a local match of $32,784.21.  The City would fail to benefit from the additional $655,684.20 allocated gas tax revenue if the distribution is not requested before November 1, 2018.

Staff recommends that the City Council approve the resolution for the 2018 distribution of Bridge and Road Safety and Accountability program funds in the amount of $655,684.20.