Consent 1.G.
Regular City Council Meeting
- Meeting Date:
- 04/13/2020
- TITLE
- Approval of Resolution for Distribution of Bridge and Road Safety and Accountability Program Funds
- PRESENTED BY:
- Jennifer Duray
- Department:
- Public Works
Presentation:
No
PROBLEM/ISSUE STATEMENT
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 2020 is $1,987,022.20. 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 2020 distribution will be used to offset a portion of the costs of the 2020 street overlay and chip seal projects, as well as the City portion required for the SID 1408, Wanigan Subdivision Improvements. Arterial construction fees of $33,750, street maintenance district assessments of $53,101.11, and Special Improvement District (SID) assessments in the amount of $12,500 will be used as the local match. An amount equal to the 2020 BaRSAA allocation of $1,987,022.20 will be held in gas tax and arterial cash reserve accounts for the future construction of the inner belt loop.
ALTERNATIVES ANALYZED
City Council may:
- Approve the resolution requesting distribution of Bridge and Road Safety and Accountability program funds in the amount of $1,987,022.20 or;
- Not approve the resolution requesting distribution of the Bridge and Road Safety and Accountability program funds. The City would not receive the additional funding and would need to defer capital projects.
FINANCIAL IMPACT
The 2020 BaRSAA distribution in the amount of $1,987,022.20 requires a local match of $99,351.11. The City would fail to benefit from the additional $1,987,022.20 allocated gas tax revenue if the distribution is not requested before November 1, 2020.
RECOMMENDATION
Staff recommends that the City Council approve the resolution for the 2020 distribution of Bridge and Road Safety and Accountability program funds in the amount of $1,987,022.20.