Item B: Tax Levy for Funding of Pavement Capital Preservation Projects0

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To comply with state statutes, the projects funded with a local option levy must have an average useful life of at least the term of the levy (i.e., projects with an average useful life of at least 10 years for a 10- year levy). The City’s debt policies also require that debt repayment period not exceed the useful life of the project. For a bond measure, however, there is no limit on the number of years of project funding that the council could ask voters to fund. That would be a policy choice for the council. The subcommittee discussed the types of pavement capital preservation projects that might be paid for with a property tax approach. By state law, either type of property tax option may be used for street construction, overlays and reconstruction. In addition to these legal restrictions, spending from a local option levy or general obligation bonds will be limited by the specific language included in the measure presented to the voters to approve the funding source. Measure language may be broad or may be narrower. Specific projects may be included in the measure language, but this is not legally required. The subcommittee recommended that levy proceeds be used for pavement capital preservation projects, with $350,000 of the revenue dedicated each year to bike path capital preservation. The ballot measure language can be written to reflect this policy direction, but the language should also be flexible enough to allow spending on the planning and preparation for specific projects. In addition, measure language should allow for changes in pavement preservation project priorities over the term of the levy/bond. Because project lists can change from year to year based on pavement testing, available revenues, coun- cil direction and other factors, the ballot measure language should be flexible enough to address pave- ment preservation priorities as they arise. When staff brings additional information back to the council for this measure, examples of specific ballot measure language will be provided for feedback from the council. Timing The subcommittee recommended that the measure be placed on the May 20, 2008 ballot. To place a measure on the May 2008 ballot, the council will have to approve a ballot title no later than February 18. Following the original subcommittee direction, the council tentative agenda currently includes a follow- up work session on January 14 and a meeting on February 11 to place a measure on the May ballot. At the election sequencing work session on November 28, the council discussed whether this measure should be placed on the May or November 2008 ballot. Although the council voted to tentatively schedule this measure on the May ballot, there was significant interest in considering the November ballot as the more appropriate choice. Attachment E provides some factors to consider when deliber- ating between these two election dates. Community Education Staff has developed a nationally recognized outreach program, "Take a Closer Look," to provide infor- mation to the community about transportation goals, needs and solutions. The outreach program was developed in 2002 and substantively updated in 2006. It uses newsletters, video, web sites, neighbor- hood presentations and other outreach tools to provide information, receive input and create awareness of council-approved solutions. Staff is in the process of updating the transportation outreach communi- cation plan and will implement specific tactics such as distributing a newsletter, revising the web site, producing a video, arranging for community presentations, and other efforts beginning in early 2008. F:\CMO\2007 Council Agendas\M071210\S071210B.doc