City Council
259 N. Wilma Avenue
Ripon, CA 95366
MEMO
To: Honorable City Council
From: Lisa Roos, City Clerk & Finance Director
Date: 08/08/2023
Subject: Street & Road Funds transfers
RECOMMENDED ACTION:
Approve this resolution for the 2022-2023 fiscal year for the transfer of certain Municipal Funds for Street Maintenance and Repairs.
BACKGROUND:
The City receives street and road operating income from various sources (e.g., Highway User Tax, SB1, Measure K Renewal, Local Transportation Fund, etc.) that is used to maintain the City’s streets and roads, which are tracked in separate funds by the source of revenue.
During the year, all street and road operating expenditures are tracked through the Street & Roads Operating Fund.
In addition to the normal operating income and expenses, the City receives grants, interest, and other reimbursements that are also tracked as part of the City’s Street & Roads Operating Fund.
At the end of the fiscal year, staff analyzes the Operating Fund activity and transfers dollars from these individual revenue funds to the Street & Roads Operating Fund to cover the annual net expenditures.
DISCUSSION/ANALYSIS:
Table 1 summarizes the fiscal year 2022-2023 cash flow, recommended transfers, and ending balances for the Street and Road funds.
Table 1
FY 2022-23
Fund Beginning
Balance
Operating
Income
Grant/
Interest
Income
Operating
Expenses
Capital
Expense
Balance
Prior to
Transfer
Transfers Ending
Balance
Street & Roads Operating ($544,904)2 $919,592 ($656,892) ($359,087) ($641,291) $641,291 $ 0 COG/LTF $31,707 $620,260 $6,682 $0 $0 $658,649 ($648,564) $10,085 Measure K $2,856,989 $376,504 $33,139 $0 $0 $3,266,632 $3,266,632 SB 1 Tax $218,032 $350,367 $5,824 $0 $0 $574,223 ($42,218) $532,005 Highway User Taxes1
$827,606 $403,048 $12,612 $0 $0 $1,243,266 ($497,152) $746,114 Community Center
Parking Lot $183,591 $0 $0 $0 $0 $183,591 $183,591
Street & Road Reserve $2,277,793 $424,328 $29,575 $0 $0 $2,731,696 $2,731,696 Street & Road
Reconstruction Reserve $0 $0 $0 $0 $0 $ 0 $546,643 $546,643 TOTALS $5,850,814 $2,174,507 $1,007,424 ($656,892) ($359,087) $8,016,766 $ 0 $8,016,766
1. Summary of five Highway User Tax sources.
2. Due to the timing difference of Stockton Avenue expenses and grant funds received as of June 30, 2022, the operating fund had a negative beginning fund balance.
For fiscal year 2022-2023, there is recommended a total of $1,187,934 to be transferred from certain street and road revenue sources to the Street & Roads Operating Fund. At the Strategic Planning meeting in March 2023, City Council established a policy to transfer 50% of the net of the Street and Road Operating Income (not including reserves) and Operating Expenses for future reconstruction projects. For fiscal year 2022-2023, the amount transferred into Street & Roads Reconstruction Reserve was $546,643, which netted $641,291 to the Operating Fund as shown in the above table.
Table 2 summarizes the Fiscal Year 2022-2023 expenditures of $1,015,979 that were applied against the Street & Roads Operating Fund.
Table 2
FY 2022-
2023
FY 2021-
2022
Description
Public Works – Street &
Roads Maintenance
$302,096 $373,307 Pothole repair, replace signs, striping, crack sealing (see attached map).
Public Works – Landscape
Maintenance
$325,316 $371,945 Maintain landscaping in areas not included in Landscape Districts.
Capital Projects1 $359,087 $3,732,818
Administration $25,617 $18,015 Prepare necessary claims and audits Engineering $3,863 $3,797 Prepare engineering reports, studies, and grant applications.
$1,015,979 $4,499,882
1. Capital Projects for Fiscal Year 2022-2023 include Stockton Avenue Rehab Phase 2 ($291,134), Lower Stanislaus River Multi-Use Trail ($10,098); design of South of Main Cape Seal ($31,305); and Utility Maintenance Asphalt Project ($26,550). Capital Projects for Fiscal Year 2021-2022 include Stockton Avenue Rehab Phase 2 ($3,677,074); Ripona Safe Routes to School ($7,392); Lower Stanislaus River Multi-Use Trail ($21,573); and Utility Maintenance Asphalt Project ($26,779).
Attachments:
1. Street & Road Maintenance FY 2022-23
RESOLUTION NO. 23-40
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RIPON AUTHORIZING THE TRANSFER OF CERTAIN
MUNICIPAL FUNDS FOR STREET MAINTENANCE AND
REPAIRS
WHEREAS, it is necessary that the balance of certain funds as hereinafter indicated, be adjusted and certain transfers made in order to properly reflect the correct balance of said funds for the period from July 1, 2022 through June 30, 2023; and WHEREAS, the City Council is desirous of setting aside 50% of each fiscal year’s surplus of Street and Roads’ long term operating revenue less operating expenses for Street and Road reconstruction projects.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ripon that the following transfer of City funds be and the same is, hereby authorized and approved by the City Council of the City of Ripon as hereinafter specifically set forth:
1. The sum of $42,217.86 of SB1 Street and Road Tax funds is ordered transferred to the Street & Roads Operating Fund for expenses incurred from July 1, 2022 through June 30, 2023, for SB1 Projects.
2. The sum of $250,431.17 of Highway User Tax Section 2103 funds is ordered transferred to the Street & Roads Operating Fund for expenses incurred from July 1, 2022 through June 30, 2023, for street maintenance.
3. The sum of $175,424.43 of Highway User Tax Section 2105 funds is ordered transferred to the Street & Roads Operating Fund for expenses incurred from July 1, 2022 through June 30, 2023, for street maintenance.
4. The sum of $67,254.96 of Highway User Tax Section 2106 funds is ordered transferred to the Street & Roads Operating Fund for expenses incurred from July 1, 2022 through June 30, 2023, for street maintenance.
5. The sum of $4,040.99 of Highway User Tax Section 2107.5 funds is ordered transferred to the Street & Roads Operating Fund for expenses incurred from July 1, 2022 through June 30, 2023, for street maintenance.
6. The sum of $648,564.11 of COG/LTF funds is ordered transferred to the Street & Roads Operating Fund for expenses incurred from July 1, 2022 through June 30, 2023, for street maintenance.
7. The sum of $546,642.74 Street & Roads Operating funds is ordered transferred to the Street & Roads Reconstruction Fund for future street and road reconstruction projects.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Ripon this 8th day of August, 2023, by the following vote:
RESULT: ADOPTED AS AMENDED BY CONSENT VOTE [UNANIMOUS]
MOVER: Daniel de Graaf, Council Member
SECONDER:Gary Barton, Council Member
AYES: Restuccia, Zuber, de Graaf, Barton, Uecker
THE CITY OF RIPON,
A Municipal Corporation
By ________________________________
MICHAEL RESTUCCIA, Mayor
ATTEST:
By: ___________________________
LISA ROOS, City Clerk