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Donna Fay K. Kiyosaki Chie(Engineer Stephen K. Yamashim Mom ~ ~y J;ro A. Sumada Deputy Chief E~ineer ~Mi2Ct~1 Df ~tXttttTtt DEPARTMENT OF PUBLIC WORKS 25 Aupuni Street Room 202 ~ HBo~ Hawaii 967 2 08 2 5 2 (808) 961-8321 ~ Fax (806) 961.8630 PROPOSED SPECIAL FUEL TAX PROGRAM INTRODUCTION The proposed Special Fuel Tax Program seeks to extend the existing fuel tax rate (8.8 cents per gallon for diesel on-highway and gasoline and 6.8 cents per gallon for LPG on-highway) established by Resolution 397-88 until June 30, 2001. The projected annual revenue generated by this fuel tax proposal is $2.5 million. PURPOSE The original program created by Resolution 397-88 intended to improve our highway resurfacing program. However, other types of work such as drainage improvements, signal system installation, bridge work, safety improvements and land acquisition were also included or later added to the program. This new proposal builds on this by recognizing that there are other categories of work besides simple resurfacing that needs to be addressed. These other categories of work include: • Bridge Inspection, Repair and Replacement • FHWA Street Resurfacing, Repair, Improvement • Local Street Resurfacing, Repair, Improvement • Highway Safety Improvements • New Construction Except for projects in the Locad Street Resurfacing, Repair, Improvement category, funds may be used as our local source of funds for projects included in the Statewide Transportation Improvement Program (STIP). The STIP is a Federal Highway Administration (FHWA) mandated expenditure plan that is based on the State's long range transportation plan. By being an active participant in the STIP, the County has an opportunity to receive a portion ofthe State Department ofTransportation's annual $120 million allocation of highway federal aid. Qualifying county bridge and highway projects E:\WP Files\Fue] Taz\New Ftx2.wpd Page 1 of 5