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Illustrative Effects of Service Reductions The table below illustrates the types and magnitude of program reductions and eliminations or funding shifts which would be required if a strategy of service reductions alone were employed to correct the structural deficiency between Road Fund revenues and expenditures and eliminate the $2 million projected annual deficit. This list is in no way intended to represent a prioritized list of the specific services which would be eliminated in a reduction situation but merely provides examples of the types of service level changes which would be required in order to achieve expenditure reductions of this magnitude. Attachment B contains additional narrative detail about the service implications of the example service reductions described in the following table. Examples of the Types and Magnitude of Service Projected Net Savings Number of FTEs Impacts in a $2 Million Expenditure Reduction in FY06 Dollars Affected Street Trees Program – Moving the funding for Street Tree Program from the Road Fund to the General Fund or reducing the level of service $808,000 9 FTE Residential Street Lighting - Turn off street lights along residential streets $357,000 .5 FTE Arterial and Collector Street Lighting – Turning off street lights along arterial and collector systems$331,000 .5 FTE Street Median Maintenance, Major Arterials – Eliminate median maintenance along major arterials$215,000 2.5 FTE Street Median Maintenance, Major Collectors and Arterials – Eliminate median maintenance along major collectors and minor arterials streets$104,000 1 FTE Non-Regulatory Signs – Eliminate non-regulatory sign fabrication, installation and maintenance, $78,000 1 FTE including street name signs Special Projects and Studies – Loss of capacity to manage any special studies that did not come with dedicated funding $74,000 .5 FTE Street Median Maintenance, Neighborhood Collectors – Eliminate median maintenance for neighborhood collector streets, residential medians $42,000 .5 FTE and traffic calming planters Neighborhood Transportation Program – Reduced capacity to conduct field investigations or technical analysis related to neighborhood traffic issues; reduced funding for traffic calming $25,000 .5 FTE Totals for Illustrative Service Impacts $2,034,000 16 FTE Potential Alternative Revenue Options As an alternative to implementing the types of service reductions described above, the council could consider the implementation of one or more alternative revenue options, such as those that follow: ? Street Light Maintenance Districts – This concept would involve the formation of assessment districts within which each property owner would be assessed an annual fee (non-property tax) for street lighting services in proportion to the benefit to that property. The revenue would be dedicated to paying the cost of maintaining light fixtures, replacing fixtures and parts, and utilities. L:\CMO\2005 Council Agendas\M050926\S050926B.doc