Staff recommends that City Council approve the resolution for the 2022 distribution of Bridge and Road Safety and Accountability program funds in the amount of $2,218,184.59.

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 allocation for 2022 is $2,218,184.59. 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 2022 distribution will be used to offset a portion of the costs of the Highwood Lane Improvement project and the 2002 street overlay and chip seal projects. Arterial Construction Fees of $32,159.23, street maintenance district assessments of $55,000, and sidewalk assessments of $23,750 will be used as the local match.

City Council may:

• Approve the resolution requesting distribution of Bridge and Road Safety and Accountability program funds in the amount of $2,218,184.59; 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 2022 BaRSAA distribution in the amount of $2,218,184.59 requires a local match of $110,909.23. The City would not benefit from the additional $2,218,184.59 of allocated gas tax revenue if the distribution is not requested before November 1, 2022.