DATE:
September 6, 2022
TO:
Mayor and Council Members
FROM:
Nils Bentsen, City Manager
BY:
Rachel Molina, Assistant City Manager
Bethany Hudson, Administrative Analyst
SUBJECT:
Fiscal Year 2022/23 – 2026/27 Five Year Measure I Capital Improvement Plan
RECOMMENDED ACTION
It is recommended that the City Council adopt Resolution No. 2022-65 approving the Measure I Five Year Capital Improvement Plan and Expense Strategy for Fiscal Years 2022/23 – 2026/27.
BACKGROUND
In November 2004, voters in San Bernardino County approved Ordinance No. 04-01, a second 30-year term to impose a one half of one percent retail transaction and sales tax to fund transportation related improvements and traffic management programs. Originally established in 1989 as Measure I, currently referred to as Measure I 2010-2040, revenue collected are to be utilized as follows:
70% Local Street Program (2% of the revenue is to be reserved for Project Development and Traffic Management Systems) 25% Major Local Highway Program (used to leverage against State/Federal funds) 5% Senior and Disabled Transit Program
ISSUES/ANALYSIS
Jurisdictions receiving Measure I tax revenue from the San Bernardino County Transportation Authority (SBCTA) Local Street Program must annually adopt, by action of their governing body, a Five Year Capital Improvement Plan (CIP), which outlines the projects upon which the Measure I pass-through funds will be expended. Only projects identified in the current CIP are eligible for use of Measure I revenue and only 50% of the estimated revenue can be programmed for use on general maintenance and city overhead. The other 50% of revenue should be programmed to specific road projects which identify projects by street name and project type. The Measure I Five Year (CIP) should also include an Expense Strategy, which explains the City’s policy approach and expenditure method in identifying projects to be funded by Measure I. At the end of the year, SBCTA audits the City’s Measure I expenditures to ensure they are consistent with the projects programmed in the Measure I Five Year (CIP).
Beginning in Fiscal Year 2018/19, the first payment of the Ranchero Road Interchange Public Share Reimbursement was due to SBCTA. This 10-year payback agreement between the City and SBCTA allowed the advancement of the Ranchero Road interchange project whereby the City borrowed its local share of the project funding from SBCTA. The City obligated Development Impact Fees (DIF) as the source of this repayment, and the City anticipates it will successfully make reimbursement payments from DIF for fiscal years 2021/22 and 2022/23; however, the repayment is included in the MICIP for future years past FY 2022/2023 as a placeholder in the event that the City is not able to continue making payments with DIF fees.
FISCAL IMPACT
There is no direct fiscal impact as a result of the subject item. This action simply adopts the FY 2022/23 – 2026/27 Five Year Measure I Capital Improvement Plan for the purpose of expending Measure I revenues. Any changes in financial condition can be clarified with an amendment to the plan.
ALTERNATIVE(S)
Provide alternative direction to staff.
ATTACHMENT(S)
Resolution No. 2022-65
Measure I Five Year CIP 2022/23 - 2026/27 Spreadsheet
Measure I Five Year CIP 2022/23- 2026/27 Expenditure Strategy City of Hesperia STAFF REPORT City of Hesperia STAFF REPORT City of Hesperia
STAFF REPORT
City of Hesperia
STAFF REPORT
Staff Report to the City Council
Fiscal Year 2022/23 – 2026/27 Measure I Capital Improvement Plan September 6, 2022