TO: Board of Supervisors
FROM: Steven Lederer, Public Works Director
REPORT BY: Steven Lederer, Public Works Director
SUBJECT: Adoption of a Resolution in Support of Measure U
RECOMMENDATION
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SET MATTER - 2:00 PM (NVTA-TA)
Receive a report on Napa Valley Transportation Authority - Tax Agency’s “Measure U - Napa Valley Transportation Improvement Act”, and adopt a Resolution in support of the expenditure plan for Measure U. (No Fiscal Impact, Discretionary)
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BACKGROUND
On February 21, 2024, the Napa Valley Transportation Authority - Tax Agency (NVTA-TA) released a “Sales Tax Replacement Measure Draft Ordinance and Expenditure Plan” for inclusion on the November 5, 2024 ballot.
NVTA-TA developed the proposed Ordinance and Expenditure Plan to improve upon and replace Measure T, the existing Countywide Road Maintenance Act passed in 2012, so that transportation sales tax revenues could work better for residents, visitors, and the workforce. Measure U would allow roads to be fixed faster, without increasing the existing half cent sales tax.
NVTA is requesting that each member jurisdiction act by Resolution to approve the expenditure plan, after which it will go back to the NVTA-TA for final approval and then the Board of Supervisors to place on the November ballot.
The proposed sales tax replacement measure has been discussed extensively by the NVTA-TA Board of Directors and technical steering committees made up of staff from each of the 6 jurisdictions that make up NVTA. In addition, the Napa Area Manager’s group made up of city/town managers and the County Executive Officer (CEO) have been regularly briefed on the proposed measure.
The following are the highlights of the Sales Tax Replacement Measure:
• No tax increase, the sales tax measure would remain at ½ cent;
• A 30-year measure, from 2025-2055;
• Generate approximately $1.2 billion in transportation funds;
• Jurisdictions have the opportunity to bond against future revenues, which will allow more roads to be fixed faster, dramatically increasing pavement condition index (PCI);
• 90% of revenues will be dedicated to fund Local Streets and Roads (LSR) countywide;
• The jurisdictional distribution formula will be updated every five years to account for actual sales tax revenue generation;
• No jurisdiction will receive less than 3% of LSR funds
• There will be some flexibility within a jurisdiction’s LSR revenue to use funds on other transportation improvements, including capacity improvement projects;
• Administration costs will be capped at 2%;
• The measure requires local jurisdictions to make investments in bike and pedestrian infrastructure, indexed to 7% of measure revenue, but using other eligible fund sources (Measure T is at 6.67%);
• To ensure funds are spent locally and responsibly, an Independent Taxpayer Oversight Committee will have oversight of the measure.
Requested Actions:
1. Board to receive a presentation from NVTA-TA staff on Measure U, followed by a presentation from Public Work’s Director Steve Lederer on the County’s previous use of Measure T funds, and how Measure U will affect the County specifically;
2. Adopt a Resolution in support of the “Expenditure Plan for the proposed Napa Valley Transportation Authority - Tax Agency’s Measure U - Napa Valley Transportation Improvement Act”
Attachments:
1. Resolution
2. Full Text of Draft Measure
3. Measure U Fact Sheet
FISCAL
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Is there a Fiscal Impact? |
No |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Measure U will allow the County to bond against future sales tax revenues, allowing more roads to be fixed faster, improving PCI countywide. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
Measure U will reduce the need for General Fund input into roads capital projects while improving the PCI. |
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Consequences if not approved: |
Measure U will not be placed on the ballot and Measure T, which remains a very useful tool, will continue as is. |
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ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: General Rule. It can be seen with certainty that there is no possibility the proposed action may have a significant effect on the environment and therefore CEQA is not applicable. [See Guidelines For the Implementation of the California Environmental Quality Act, 14 CCR 15061(b)(3)]. CEQA analysis is performed on any project that might be funded by Measure U should it pass.