TO: Board of Supervisors
FROM: Steven Lederer, Director, Public Works
REPORT BY: Steven Lederer, Director, Public Works
SUBJECT: Five Year Roads Plan, With Option to Bond Against Measure U Revenues
RECOMMENDATION
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Receive a presentation regarding anticipated future roads maintenance projects, including the possibility of bonding against future Measure U (formerly Measure T) revenues. (No Fiscal Impact)
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BACKGROUND
For decades, the primary source of funding for maintaining roads was the state and federal gas tax. Property taxes are primarily directed to schools and other governmental entities; they do not fix roads. Between 1993 and 2018, neither California nor Federal gas tax rates were changed. The Federal Government still has not raised its tax rate, and the future of the Highway Trust Fund and federal funding remains in a state of flux. The buying power of gas tax revenue steadily decreased due to inflation, and revenue generated was reduced due to improvements in vehicle fuel mileage and the advent of electric vehicles, resulting in fewer gallons of gas being sold/taxed.
As a result, Napa County and most other jurisdictions in the state all experienced decreased funding. In Napa County alone the deferred maintenance backlog is calculated to be over $400 million. The good news is the voters of Napa and the State of California have voted to change that funding situation. Measure T, a half-cent sales tax voted in by Napa County residents, started collecting funds for road maintenance in 2018. At roughly the same time, the state implemented SB1 which finally increased the gas tax levy. These two sources provide roughly $13 million per year locally for road repairs. Engineering calculations indicate the need is $28 million per year to maintain roads well. And most recently, Napa voters replaced Measure T with Measure U, which will extend the funding source and allow "bonding" against future revenues which will fix more roads faster.
To manage ...
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