AgdaPkt 2005-09-12 - Laserfiche WebLink

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¿: -I REPORT To the Honorable Mayor and City Council From the City Manager September 12, 2005 Subject San Mateo County Environmental/Transportation Pilot Program Funding Recommendation It is recommended that the City Council provide staff with policy direction on the use of funds expected to be received from the San Mateo County Environmental/Transportation Pilot Program in FY 2005/06. Background Assembly Member Simitian introduced AB 1546 on behalf of the City/County Association of Governments of San Mateo County (C/CAG) in 2003. This bill was adopted by the Legislature on August 18, 2004, signed into law by the Governor on September 29, 2004, and took effect on January 1, 2005. This law provides authorization for the C/CAG to impose an annual fee of up to $4 on motor vehicles registered within San Mateo County for a program for the management of traffic congestion and storm water pollution within San Mateo County. On December 9, 2004 the C/CAG Board unanimously approved the imposition of a four dollar ($4.00) fee effective July 1, 2005 for motor vehicles registered in San Mateo County. These fees will then be distributed to cities and the County on a per capita basis. It is anticipated that this fee will raise about $2.5 million for each complete fiscal year that the fee is in effect from FY 2005/06 through FY 2007/08 and $1.25 million for the first six months of FY 2008/09 (the fee expires on January 1, 2009). C/CAG is already working with a lobbyist to extend this fee beyond its scheduled January 1,2009 expiration. Until such time as the legislature, Governor, and eventually C/CAG extend this fee, Council may want to exercise caution in planning for the availability of these funds beyond January 1, 2009. About $1.1 million of this amount will be allocated annually to cities and the County on a per capita basis. Generally, 50% these funds must be used for congestion management activities and 50% for programs that address the negative impact the motor vehicles have on creeks, streams, bays, and the ocean. A more detailed explanation of the use of these funds may be found on Attachment I. Since Redwood City's annual share of this fee will be about $100,000 per year, the City must spend about $50,000 in each of the above-mentioned programmatic areas. As there is no maintenance of effort requirement, the City may use the revenues to reimburse the general fund programs financed by the general fund. Doing so will reduce the anticipated gap between revenues and expenditures by $100,000 per year in the general fund future years and preserve existing services during difficult financial times.