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<br /> 88 <br /> Page 1 <br /> REPORT <br /> . .. . .. .. <br /> . .. . . . . .. <br /> .. . <br /> . .. <br /> . ." .. '. .. ." <br /> . ." ..- <br /> . .. , ". . <br /> . . <br /> .' -. <br /> .. -."" ...... . <br /> . ... ",- .. . <br /> To the Honorable Mayor and City Council <br /> From the City Manager <br /> July 24, 2006 <br /> Subject <br /> Capital Improvement Program Short Term Spending Limit <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 /> 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 /> The following outlines the recommended spending limit criteria for FY 2006/2007: <br /> A. Funding Level and Duration <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 /> 2. Withhold funding of approved projects/programs in two phases: <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 /> ~ 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 /> B. Recommended Criteria for Projects/Programs with no Proposed Reduction <br /> 1. No funding change for traffic calming, transportation, and roadway <br /> management related projects/programs. <br /> 2. Retain projects that provide "necessary" public safety (e.g., emergency vehicle <br /> signal pre-emption). <br /> 3. Continue projects that positively impact the Downtown Area (e.g., new park <br /> next to Main Library). <br /> Page 1 of 3 <br /> -....- <br />