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

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RELATED CITY POLICIES The council’s goals for 2007 include “Transportation Initiative: Develop mechanisms to adequately fund our transportation system for cars, trucks, bikes and pedestrians including maintenance and preser- vation and capital re-construction.” COUNCIL OPTIONS The council has options related to the size of the measure, type of measure, restrictions on uses of the revenue and timing of the ballot measure: ? Measure size: the council initially recommended $6.5 million of spending per year for 10 years. The City Council could choose a different annual amount or a different number of years (not to exceed 10 years for a capital local option levy). ? Type of tax measure: 10-year capital local option levy (a rate or an amount) or GO Bond measure. ? Restrictions on uses: pavement capital preservation projects, including overlays and reconstruc- tions, with a continuum from broad language with no project list to a highly specific project list with no flexibility. ? Timing of the ballot measure: based on the election sequencing discussion, the council could consider placing this issue on the ballot for either the May or the November 2008 election CITY MANAGER’S RECOMMENDATION The City Manager recommends: ? A GO bond measure to fund $81million of pavement capital preservation projects ($6.5 million plus inflation annually) over 10 years should be prepared for the November 2008 ballot. ? The bond measure should include a list of high-priority pavement capital preservation projects. It should also allow for planning and preparation activities, as well as for changes in pavement preser- vation project priorities over the life of the measure. SUGGESTED MOTION Direct the City Manager to bring a proposal to a future council work session for a GO bond measure to fund $81 million of pavement capital preservation projects over 10 years within an appropriate time- frame to place the question on the November 2008 ballot. The proposal should include ballot measure language that provides for both a list of high priority pavement capital preservation projects and appro- priate flexibility for planning activities and changing pavement capital preservation project priorities. ATTACHMENTS A.Background – Financial Need from Council Subcommittee, Final Report, May 23, 2007 B.Status of Transportation Funding Solutions C.Capital Local Option Levy Recommendation from Council Subcommittee, Final Report, May 23, 2007 D.Comparison of Property Tax Funding Approaches E.Election Timing Considerations F:\CMO\2007 Council Agendas\M071210\S071210B.doc