City Council
259 N. Wilma Avenue
Ripon, CA 95366
MEMO
To: Honorable City Council
From: Lisa Roos, City Clerk & Finance Director
Date: 08/13/2024
Subject: Street & Road Funds transfers
RECOMMENDED ACTION:
Approve this resolution for the fiscal year 2023-2024 transfer of certain municipal funds for street and road maintenance and repairs.
BACKGROUND:
The City receives street and road operating revenue 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. The revenue is tracked in separate funds by the source of the revenue.
During the year, all street and road operating expenditures are tracked through a single fund, the Street & Roads Operating Fund.
In addition to the normal operating revenue and expenditures, 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 Street & Roads Operating Fund activity and transfers dollars from the individual revenue funds to the Street & Roads Operating Fund to cover the annual net expenditures (after grants, interest, and other reimbursements are accounted for).
At the March 2023 Strategic Planning meeting, the City Council established a policy to transfer 50% of the net of the annual street and road operating income and expenses (not including grants, reserve transfers, or expense of capital projects) to the Street & Road Reconstruction Fund for future road reconstruction projects.
DISCUSSION/ANALYSIS:
Table 1 summarizes the fiscal year 2023-2024 cash flow, recommended transfers, and ending balances for the Street and Road funds.
Table 1
FY 2022-23
Fund Beginning
Balance
Operating
Income
Operating
Expenses
Capital
Expense
Balance
Prior to
Transfer
Transfers Ending
Balance
Street & Roads Operating $ 0 $40,137 ($638,239) ($395,166) ($993,268) $993,268 $ 0 COG/LTF $10,085 $1,596,187 $0 $0 $1,606,272 ($1,557,711) $48,561 Measure K $3,266,632 $459,431 $0 $0 $3,726,063 ($175,327) $3,550,736 SB 1 Tax $532,005 $419,942 $0 $0 $951,947 ($770) $951,177 Highway User Taxes1
$746,114 $459,848 $0 $0 $1,205,962 ($408,045) $797,917
Street & Road Reserve $2,915,287 $53,026 $0 $0 $2,968,313 $2,968,313 Street & Road
Reconstruction Fund $546,643 $9,943 $0 $0 $556,586 $1,148,585 $1,705,171 TOTALS $8,016,766 $3,038,514 ($638,239) ($395,166) $10,021,875 $ 0 $10,021,875
1. Summary of five Highway User Tax sources.
For fiscal year 2023-2024, there is recommended a total of $2,141,853 to be transferred from certain street and road revenue sources to the Street & Roads Operating Fund ($993,268) to cover the fiscal year 2023-24 expenditures and the Street & Road Reconstruction Fund ($1,148,585) according to City Council policy, as shown in the above table.
Table 2 summarizes the Fiscal Year 2023-2024 expenditures of $1,033,405 that were applied against the Street & Roads Operating Fund.
Table 2
FY 2023-
2024
FY 2022-
2023
Description
Public Works – Street &
Roads Maintenance
$254,146 $302,096 Pothole repair, replace signs, striping, crack sealing (see attached map).
Public Works – Landscape
Maintenance
$353,624 $325,316 Maintain landscaping in areas not included in Landscape Districts.
Capital Projects1 $395,165 $359,087
Administration $25,728 $25,617 Prepare necessary claims and audits Engineering $4,742 $3,863 Prepare engineering reports, studies, and grant applications.
$1,033,405 $1,015,979
1. Capital Projects for Fiscal Year 2023-2024 include Stockton Avenue Rehab Phase 2 ($259,032), Lower Stanislaus River Multi-Use Trail ($14,598); design of South of Main Project ($28,753); Utility Maintenance Asphalt Project ($5,424) and Roadway Striping ($87,358). 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).
Attachments:
1. Street & Road Maintenance FY 2023-24
RESOLUTION NO. 24-32
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, 2023 through June 30, 2024; 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 expenditures 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 $770.95 of SB1 Street and Road Tax funds is ordered transferred to the Street & Roads Operating Fund for expenditures incurred from July 1, 2023 through June 30, 2024, for SB1 Projects.
2. The sum of $147,315.37 of Highway User Tax Section 2103 funds is ordered transferred to the Street & Roads Operating Fund for expenditures incurred from July 1, 2023 through June 30, 2024, for street maintenance.
3. The sum of $98,128.28 of Highway User Tax Section 2105 funds is ordered transferred to the Street & Roads Operating Fund for expenditures incurred from July 1, 2023 through June 30, 2024, for street maintenance.
4. The sum of $158,528.42 of Highway User Tax Section 2106 funds is ordered transferred to the Street & Roads Operating Fund for expenditures incurred from July 1, 2023 through June 30, 2024, for street maintenance.
5. The sum of $4,072.76 of Highway User Tax Section 2107.5 funds is ordered transferred to the Street & Roads Operating Fund for expenditures incurred from July 1, 2023 through June 30, 2024, for street maintenance.
6. The sum of $175,326.77 of Measure K funds is ordered transferred to the Street & Roads Operating Fund for expenditures incurred from July 1, 2023 through June 30, 2024, for street maintenance.
7. The sum of $1,557,711.07 of COG/LTF funds is ordered transferred to the Street & Roads Operating Fund for expenditures incurred from July 1, 2023 through June 30, 2024, for street maintenance.
8. The sum of $1,148,585.57 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 13th day of August, 2024, by the following vote:
RESULT: ADOPTED AS AMENDED BY CONSENT VOTE [UNANIMOUS]
MOVER: Gary Barton, Council Member
SECONDER:Dean Uecker, Council Member
AYES: Zuber, de Graaf, Barton, Uecker, Restuccia
THE CITY OF RIPON,
A Municipal Corporation
By ________________________________
LEO ZUBER, Mayor
ATTEST:
By: ___________________________
LISA ROOS, City Clerk