The URL can be used to link to this page

Home My WebLink AboutMINUTES - 10231990 - TC.1 TO: BOARD OF SUPERVISORS FROM..%. V1�V1 I l Transportation Committee, (JoJLGi DATE;. October. 15,, 1990 Cointy SUBJ.ECT: Report. on'. County,'s Request to the Transportation Authority for Interest Earnings on_. "Return-to-Source" Sales Tax Revenue. SPECIFIC REQUEST(S) OR RECOMMENDATION S) &. BACKGROUND AND JUST-IFICATION RECOMMENDATION: Accept Report. FINANCIAL IMPACTi If the Contra Costa Transportation Authority (OCTA) were to allocate interest attributable to the 'Return-to-Source sales tax revenue, it would generate $260, 000 annually to be shared by the local jurisdictions, or approximately $5.2 million over the; life of the ' program: Based on' the existing population and road mileage of local jurisdictions participating 'in the OCTA Growth Management. Program, the County could receive approximately $60, 000 annually as interest on its Return-to-Source allocation, Or .over -.$1 million over the life of the program. Exhibit, A provides a table showing the distribution of potential interest earnings by -jurisdiction on an annual basis. . BACKGROUND: On August 2.8, 19.90, the Board of Supervisors passed resolution 90/571 . requesting interest earned on the Return-to-Source revenue allocated to local jurisdictions participating in the Growth Management Program. On October 4 , 1990, the CCTA's Administrative Committee considered the County's request. The CCTA staff recommended to deny the request; and hold any such earnings for project delivery and/or enhanced planning efforts directly involving'-the -local_ jurisdictions. The CCTA staff report .is attached as Exhibit B. County. staff attended the Administrative Committee meeting presenting -- the County's position as described in Resolution 90/571. It was pointed out that there are a number of road repaving projects of direct benefit ,to local taxpayers that could- be funded by the interest earnings. The report by Authority staff did not show how interest earnings would be .used to fund any specific project or planning effort, or that other potential funding sources could not be pursued. The Administrative. Committee was generally supportive of the Authority staff recommendation, but directed staff to identify a more specific funding proposal for the interest earnings, and bring the issue back to the committee. Orig.Dept. .CDD-TP CONTINUED ON. ATTACHM ENT: Y SIGNATURE: RECOMMENDATION OF COU Y STRATOR ECOMMENDATION OF BOARD COMMITTEE APPROVE SIGNATURE s): roder Tom Torlakson ACTION OF BOARD ON October 23, 1990 APPROVED AS RECOMMENDED X OTHER VOTE OF SUPERVISORS 1 HEREBY CERTIFY THAT THIS IS A TRUE X UNANIMOUS (ABSENT AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF' THE BOARD ABSE�ITj jBSTAIN: OF SUPERVISORS ON THE DATE SHOWN. cc 11Coommunity Development Department : ATTESTED Public Works Department. County Administrator PHIL BATCHELOR, CLERK OF THE BOARD OF SUPERVISORS, AND COUNTY ADMINISTRATOR BY ✓C.�..x.fii�-y�v.� DEPUTY M382/7-83 EXHIBIT A Estimate of Interest Earned on Return-to-Source Sales Tax Funds Annual 20-Years ------------------------------------------------ Antioch 6. 9% 17,940 358,800 Brentwood 0.9% 2, 340 46,800 Clayton 1. 0% 2, 600 52, 000 Concord 13 . 0% 33 ,800 676, 000 County 23 .4% 60,840 1,216,800 Danville 3 .9% 10, 140 202,800 E1 Cerrito 2 .8% 7,280 145, 600 Hercules 2 . 0% 5, 200 104, 000 Lafayette 3 . 1% 8, 060 161,200 Martinez 3 .7% 9, 620 192,400 Moraga 1.9% 4, 940 98,800 Orinda 2 .8% 7, 280 145, 600 Pinole 2 . 0% 5, 200 104, 000 Pittsburg 5. 1% 13, 260 265, 200 Pleasant Hill 3 .7% 911,620 192, 400 Richmond 9.8% 25,480 509, 600 San Pablo 2. 2% 5,720 114,400 San Ramon 4.4% 11, 440 228, 800 Walnut Creek 7.2% 18,720 374,400 TOTAL $260, 000 $5, 189, 600 EXHIBIT B CCTA ADMINISTRATIVE COMMITTEE October 4, 1990 1 SUBJECT: REQUEST FROM CONTRA COSTA COUNTY AND THE CITY OF CONCORD TO RECEIVE INTEREST EARNED BY THE AUTHORITY .POTENTIALLY ATTRIBUTABLE TO 18 PERCENT LOCAL STREET IMPROVEMENTS AND MAINTENANCE FUNDS RECOMMENDATION: Staff recommends that the Authority .not approve the allocation of interest potentially attributable to the 18 percent funds to local jurisdictions, but hold any such earnings for project delivery and/or enhanced planning efforts. directly involving the local jurisdictions. FISCAL IMPLICATIONS: If an 18 percent pro rata share of, monthly revenues were assumed by the Authority to be unofficially allocated for local street and maintenance improvements, and held in reserve, the interest earnings would be . approximately $260,000 for the 1989-90 fiscal year, and would grow annually'as our revenues grow. BACKGROUND. At its May 3, 1989 meeting, the Authority indicated that it planned to withhold 18 percent funds for up to three years; pending satisfaction of Growth Management Program (GMP) requirements. At that meeting, also, .the Authority indicated it would not allocate any interest earned on funds retained. . Fortunately, significant progress made in defining the Growth Management Program, in large measure due to the contributions of time and effort by local staff, and the local commitments. to comply with the program, made through resolutions of intent and other mechanisms, allowed the Authority. to release first year marries. However, the issues )of interest earnings on funds assumes that the 18 percent funds accumulate on a pro rata basis throughout the year. In actuality, the Ordinance indicates that funds will be.allocated based on submission of an annual compliance. checklist, which implies allocations once a year following certification of compliance with the Growth Management Program. This allows latitude for the Authority to treat the allocations'as a one-time payment each year, rather than as a pro rata accumulation during the course of the full year, if such a policy direction• were to be preferred. As the County letter (attached) indicates, . the Authority is -expecting local agencies to fund the cost of providing committee staff to the Regional Transportation Planning Committees (RTPCs) . The Authority's Regional Planning Funds are limited, necessitating that approach. Also because of the limitation of planning funds, sales tax funds for future Action Plan updates, and for conducting the Congestion Management Program (CMP), have not been explicitly identified. RKM: ADMIN: INTEREST �/Page. 1 CCTA ADMINISTRATIVE COMMITTEE October 4, 1990 Furthermore, we are attempting to avoid 'any charges to local jurisdictions for performing the CMA function, even though no State funds have been set aside for those purposes. While we hope that we will have sufficient "budget capacity for this, long term funding requirements for planning should be clearer in a year. In addition, the .Authority has committed-up to $500,000. per region for transportation computer modelling development and Action Plan preparation, a total of approximately $2 million, without asking. for local jurisdiction financial contributions to these efforts. The funds for updating the Action Plans in the future has also not been fully. identified. As a result of all of these factors, staff .has two recommendations: 1. The. Authority should reaffirm its policy that annual compliance allocations will total 18 percent of,annual sales tax revenues, without credit for any interest which might be earned on Authority invested funds.; and 2. The Authority .should consider in the future use of funds which might be attributed to interest on 18 percent of the annual revenues for application to Congestion Management Planning and possibly for matching local contributions supporting RTPC. staff, depending upon financial circumstances facing the program. Review of these circumstances is proposed in approximately one year, after the first round of Action Plans have hopefully been accomplished, and the Authority ,has functioned for a year as the CMA RKM: ADMIN: INTEREST /Page "2 City,df Concord Telephone Number CITY COUNCIL p Syron Campbell.Mayor „ . Nancy Gore;Vice.Mayor. Colleen Coll September 20, 1990 - ' � _ Loyd O. Mashore Ronald K. Mullin Rita Hardin.City Manager Mr. Robert K: McCleary Executive Director Contra Costa Transportation Authority 2702 Clayton Road, Suite 202 Concord, CA 94519 Dear Bob: This letter is to request Authority consideration-of extending interest accumulated on.return,to source funds to the City of Concord for Measure C,allocations. The delay in delivery of-these funds was not" based on any action or lack thereof, by the City of Concord. Delays in development of parameters for growth management would deprive Concord of substantive interest on the $833,000 held by the Authority. In-additi.on, the approval of a Resolution of Compliance for growth management by the Concord City Council, narrowly missed the agenda deadline for Authority meeting action in August of this year. The 30 day delay in forwarding Concord's return to source funds would amount to around $7,000 based on the City average investment rate of 8.51-. Your consideration of this request through the Transportation.Authority would,be appreciated. Besr.regards Steven epsen Acting Director of Public Works/ Community Development ' X1498114 FARREL A. STEWART CIVIC CENTER 1950 PARKSIDE DRIVE CONCORD CALIFORNIA 94519 FAX 415-671-3375 Gommurnity Contra Harvey E- ommu i t Director of Community Development •Development Cos' ta .Department County Administration Building COUnty 651 Pine Street 4th Floor, North Wing :e Martinez. California 94553-0095 . . .�,.• ,. � SCF Phone: September 5, 1990 Mr. Robert. K. McCleary Contra- Costa Transportation Authority 2702 Clayton .Road, Suite 200 Concord, CA 945 Dear Mr_. ea On August 28, 1990, the Board of Supervisors approved the attached resolution requesting any interest earned on the County's allocation of Local .Street Maintenance.and Improvement funds while on deposit with the Authority: As explained in the resolution, :conditions have changed since the Authority decided last year- to keep any interest earned on the revenues designated for :the County and the cities. Local responsibilities to fund the multi-jurisdictional transportation planning process . and other growth management requirements. established by draft Growth Management Program make it more crucial for. the County and the cities to capture any revenue generated by the Local Street Maintenance and Improvementfunds. Hopefully the Authority will look - favorably on this request in view of .the local responsibilities -for satisfying the Measure C growth management requirements, and -the limited amount of Measure C, sales tax revenues available to loca agencies. - ,. Sinc y, , e E. gdon i ec or attachment HEB:SLG:chklst.t9 l0 THE BOARD OF SUPERVISORS OF ,CONTRA 'COSTA COUNTY, CALIFORNIA Adopted this Order on August 28, 19.90 , by the following vote: AYES: Supervisors Powers, :TorlakPon, 'Fanden . . NOES: ,None r" ABSENT:' Supervisors McPeak, Schroder. ABSTAIN:. None Resolution No. 90/571 SUBJECT:- Request.to CCTA for' "Interest Earned on) " Measure,C Local Street Maintenance and) Improvement Funds ) ; The Board of Supervisors of Contra Costa County RESOLVE: "WHEREAS, Measure C" establishes the Local Street Maintenance and. Improvement ` Program" at 18' -percent of the total revenue - generated by the Measure .C. half-cent sales tax;.and 'WHEREAS, revenues' for 'the Local Street Maintenance and Improvement Program .are the only Measure C - sales tax funds , specifically allocated- to the County, and the cities for...local programs; and. WHEREAS, Section l.d., of the. Terms and Conditions for the Measure C Growth Management Allocation, approved. by the- Board of Supervisors on January 23, 1990, requires any interest earned on revenues generated for the Local Street Maintenance and Improvement Program remain with the Contra, Costa' Transportation Authority (CCTA) ; and WHEREAS, the CCTA has apportioned over 86 percent of the $10 million in sales tax revenue generated for Regional Transportation Planning and Growth Management for the CCTA's use; and WHEREAS, the draft Measure C Growth Management Program will require . the County and the cities to allocate' local, funds to ._ finance the multi-jurisdictional. transportation planning .process and:'other growthmanagement requirements established by Measure C;> and WHEREAS, these additional 'planning requirements reduce the . ` Local Street Maintenance and Improvement Program Funds available for.local street and road' purposes. NOW THEREFORE, the. Board of Supervisors of Contra Costa County does hereby,request `the Contra Costa Transportation Authority to: 1...Amend Section l.d. of the Terms and , conditions for Growth Management Allocations so that .any interest earned on the revenues generated for the Local Street .Maintenance and Improvement Program will be'available` for allocation-to the County and--the cities; and 2. Include with; the County's allocation from the Local Street Maintenance" and Improvement.Program. for.Fiscal Years ,1988/89 . and,1989/90, any interest earned on this allocation while-.,on. deposit with the Authority. ' 1 hereby bertlfy ttiet this to a true and correct copy of measurec.res an'action taken and entered on the minutes of.the Orig.Dept.:CDD/TPda ahowr� Board o1 SuperHs non the 28 0 PHIL BAR,Clerk of tha Boars `of.6uperrgors and County Administrator BY" Dem: RESOLUTION--NO. 90/571 /- to S