Staff recommends that City Council approve the resolution for the 2021 distribution of Bridge and Road Safety and Accountability program funds in the amount of $1,990,850.36.

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 2021 is $1,990,850.36.  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 2021 distribution will be used to offset a portion of the costs of the Wicks Lane reconstruction project and the 2021 street overlay and crack seal projects.  Arterial construction fees of $89,542.52 and street maintenance district assessments of $10,000 will be used as the local match.  An amount equal to the 2021 BaRSAA allocation of $1,990,850.36 will be held in gas tax and arterial cash reserve accounts for the future construction of the Inner Belt Loop.

City Council may:

• Approve the resolution requesting distribution of Bridge and Road Safety and Accountability program funds in the amount of $1,990,850.36; or,
• Not approve the resolution requesting distribution of Bridge and Road Safety and Accountability program funds.  The City would not receive the additional funding and would need to defer capital projects.

The 2021 BaRSAA distribution in the amount of $1,990,850.36 requires a local match of $99,542.52.  The City would fail to benefit from the additional $1,990,850.36 allocated gas tax revenue if the distribution is not requested before November 1, 2021.