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<br />7A <br />Page 1 <br /> <br /> <br />R, '.""",ff,",..',".p'...',.'.,.(),,',..'.', ',..R...'.','..,:"..f',.,'". " <br />. ,.... .:..... <br />. ... .' . <br />. . -. .... <br />. .' . <br />. , . . - - ", -, <br />.. . - o. <br /> <br />r 0 the Honorable Mayor and Oity Council <br />From the City Manager <br /> <br />July 24, 2006 <br /> <br />Subject <br />Capital Improvement Program Short Term Spending Limit <br /> <br />Recommendation <br />Review and provide direction to staff regarding the proposed short term spending limit <br />for the FY 2006-2007 Capital Improvement Program (CIP) budget. <br /> <br />Background <br />At the Council Study Session of June 26, 2006 regarding the FY 2006-2007 CIP budget, <br />a question was raised about the potential loss of funding due to Utility Users Tax (UUT) <br />on long distance telephone calls. Subsequently, the City Council approved the FY <br />2006/2007 budget with the direction that a staff report would be brought back to City <br />Council recommending a list to limit short term capital spending until a resolution of <br />UUT on long distance telephone calls reach a more defined direction. <br /> <br />The following outlines the recommended spending limit criteria for FY 2006/2007: <br /> <br />A. Funding Level and Duration <br /> <br />1. Withhold funding of approved projects up to $2 Million from the total UUT <br />allocation of $5.8 Million in FY 2006/2007. <br /> <br />2. Withhold funding of approved projects/programs in two phases: <br /> <br />>- Phase 1 - Withhold two million dollars of project funding, then re-evaluate <br />the need to continue withholding or to release the first $1 million dollars of <br />funding after six months (see Attachment "A"). <br /> <br />~ Phase 2 - If the condition of the UUT revenue remains uncertain after six <br />months, withhold the remaining one million dollars in project funding until <br />the end of the fiscal year. <br /> <br />B. Recommended Criteria for Projects/Programs with no Proposed Reduction <br /> <br />1. No funding change for traffic calming, transportation, and roadway <br />management related projects/programs. <br /> <br />2. Retain projects that provide "necessary" public safety (e.g., emergency vehicle <br />signal pre-emption). <br /> <br />3. Continue projects that positively impact the Downtown Area (e.g., new park <br />next to Main library). <br /> <br /> <br />Page 1 of 3 <br />