COM 0595.000 1996-1998 - Laserfiche WebLink

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can receive federal aid at a one (county) to four (federal) ratio and certain safety improvements may not require any County funds for construction. Because the STIP allows us to leverage our funds, we intend to pursue qualifying projects whenever possible. If we could leverage fuel taxes to its maximum, it can finance more than $8 million in construction projects and services annually. Further, because fuel taxes are a reliable, regulaz source of annual funding, we could program multimillion dollaz projects into the STIP by simply phasing construction work. Without federal aid, fuel taxes will not be able to support our highway maintenance and improvement program. DESCRIPTION Although this program does not alter the tax rates or its duration, it does establish a new revenue distribution system that corresponds with identified categories of work. The previous program distributed funds to each tax map district based on a percentage derived by the following formula: [(District's % of revenues collected) + (District's % of Road Miles)1 2 This simple formula assumed that each district had similaz types ofroads and facilities. Unfortunately, as the program developed the inequities of this assumption became apparent. Two of the most notable inequities were the numbers of bridges in each district and fact that certain roads, commonly called the Circle Island Road, are more heavily used by the public. The old program addressed these two issues by creating a "Circle Island" category under Resolution 351-91. This category was funded whenever the actual revenues collected exceeded the anticipated revenues for the districts. To better account for these inequities and allow for new considerations such as the STIP, the department is proposing the following procedures to establish a work based distribution plan. 1. Identify major categories ofwork that the fuel program needs to address. Each category ofwork is then allotted a percentage of revenues. Based on past experiences, the Department is recommending the following: o Bridge Inspection, Repair and Replacement -15% $ 375,000/yr o Resurfacing, Repair and Improvement ofFHWA Streets -20% 500,000/yr o Resurfacing, Repair and Improvement of Local Streets -35% 875,000/yr o Highway Safety Improvements -15% 375,000/yr o New Construction -15% 375,000lvr 100% ~,SOQ000/yr Although consultant services, project advertising and staff per diem while in Kona have been recognized as valid fuel tax expenditures, it is not being identified as a specific work category and will not receive a specific allotment. This type of work is viewed as a project cost and must E:\WP Filea\Fuel TaxINew Fta2.wpd PagE 2 Of 5