Title
a. Approve a report on the emergency repair expenditures of the Road Fund as result of the 2016 Winter Storm Events; and
b. Direct staff to proceed with Alternative 2 utilizing one time funds to finance the $2.2 million of emergency costs incurred during the 2016 Winter Storm Events for the Road Fund.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve a report on the emergency repair expenditures of the Road Fund as result of the 2016 Winter Storm Events; and
b. Direct staff to proceed with Alternative 2 utilizing one time funds to finance the $2.2 million of emergency costs incurred during the 2016 Winter Storm Events for the Road Fund.
SUMMARY:
The Road Fund (Fund 002 RMA012) is a special revenue fund created to capture revenues legally restricted for road work such as construction and maintenance on roads and bridges within the unincorporated areas of Monterey County, pursuant to state law. The fund balance in the Road Fund has steadily eroded in recent years as the revenue from the County's Highway Users Tax (HUTA) decrease and overhead expenses increase. It was anticipated during the Fiscal Year (FY) 2106-17 Baseline Budget development that there would be $1.2 million of one-time funds from Fund 002 uncommitted fund balance that would carry over into FY 2016-17 to be used to offset operating costs. However, Resource Management Agency's (RMA) response to the 2016 winter storms has further complicated the financial condition of the Road Fund. The Road Fund Unassigned Fund Balance for the Road Fund is anticipated to be completely depleted by the end of this current FY 2015-16 (June 30, 2016).
DISCUSSION:
The Adopted Budget for FY 2015-16 for the Road Fund (Fund 002, RMA012) assumed an erosion of fund balance of -$4.4 million. This budget anticipated revenues of $31 million and expenditures of $35.4 million. During the development of the FY 2016-17 Baseline Budget, through implementing inter...
Click here for full text