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5 - Proposed Year 2005-2010 Transportation Improvement Program (CIP) - Part I C I T Y O F B O U L D E R TRANSPORTATION ADVISORY BOARD AGENDA ITEM MEETING DATE: April 12, 2004 AGENDA TITLE: Staff briefing and TAB input on the proposed Year 2005-2010 Transportation Capital Improvement Program (CIP) – Part I PRESENTER/S: Tracy Winfree, Director of Public Works for Transportation Michael J. Gardner Sweeney, Transportation Planning & Operations Coordinator Melody Agruso, Senior Financial Manager EXECUTIVE SUMMARY: The City goes through an annual budget process creating a six-year planning budget, this year for the time period of 2005 through 2010. Within this process funds are appropriated for the first year, 2005. The Transportation Advisory Board (TAB) role in this process is defined within the provision of the creation ordinance for the board; . . . to A review all city transportation environmental assessments and capital improvements. It is @ within this context that the board is asked to hold a public hearing and provide a recommendation on the Capital Improvements Program (CIP) to Planning Board and the City Council. This agenda item is intended to initiate this process by providing: Background information; A tentative schedule; and, Key issues for this year. Fiscal Impacts: Fiscal impact to be determined through the budget development process. Other Impacts: NA Board feedback: Staff is asking that TAB review the background information and provide feedback to staff on how we can best support board discussions and deliberations. Public feedback: As noted in the provided schedule, Board input is scheduled for this meeting and the May 10, 2004 meeting. A formal public hearing and recommendation is scheduled for June 14, 2004. AGENDA ITEM #____V____PAGE__- 1 -__ Staff Recommendation: NA Analysis: The budget is the means by which the city both manages its assets, and implements the policies chosen by its citizens, through their elected representatives, the City Council. The transportation budget is formulated within the policy context of the Transportation Master Plan. Transportation finance for the city is provided through two sources, the Transportation Fund and the Transportation Excise Tax Fund. Revenue sources for the Transportation Fund include the 0.006 local sales tax dedicated for transportation purposes, Transportation Equity Act for the 21st Century (TEA-21) federal funds, Highway Users Tax, County Road and Bridge funds and State Highway Maintenance and Landscape Funds. The Transportation Development Excise Tax Fund is supported by a transportation related excise tax, levied against new construction for development related infrastructure needs. The Capital Improvements Program (CIP) has been developed in support of TMP prioritization with the identified modal emphasis. A copy of the 2004-2009 Transportation Fund and Transportation Development Fund Capital Improvements Attachment A Programs are provided in . Schedule The city budget goes through an extensive development and review process. The budget process starts in March leading to final City Council approval in the fall. A schedule of the major milestones is provided below. Elements involving TAB participation are bold italics highlighted in . Milestone Date Capital Projects Information Sharing Meeting April 2004 TAB Budget Discussion Kickoff April 12, 2004 City Council Study Session on 2005 Budget April 27, 2004 Staff briefing and TAB comment May 10, 2004 Proposed Budget Submittal to City Managers Office (CMO) June 4, 2004 = Department Budget Review by CMO June 7, 2004 Public Hearing and TAB Budget Deliberation and Recommendation June 14, 2004 CIP Submitted to Planning Board Early July 2004 Planning Board CIP Hearing Mid-July, 2004 City Council Consideration October 2004 Budget Issues Transportation is committed to being fiscally responsible while responding to community values and priorities. In order to understand the future, it is helpful to be grounded in the past. In 2003, Transportation experienced a combined 7% decrease in funding revenues resulting in budget cuts of $1M annually. Combined 2002 & 2003 budget reductions total $3.5M annually. AGENDA ITEM #____V____PAGE__- 2 -__ 2003 Fund Update The Transportation Fund ended the 2003 fiscal year with revenues (excluding reimbursements and grants) collected at approximately 8% ($1.4M) below approved budget primarily due to decreased sales tax revenue. Sales tax revenue comprises approximately 63% of total fund sources. The Transportation Development Fund ended the 2003 fiscal year with revenues (excluding reimbursements) collected at approximately 14% ($158k) above approved budget. Excise taxes comprise approximately 83% of fund sources and were up 22% for the year. While declining sales tax collections impacted the Transportation Fund, both funds were impacted by large declines in interest revenues. 2002 & 2003 Budget Reductions In 2002 and 2003, the Transportation Fund made sustainable reductions totaling approximately $3.5M across all programs in order to adjust for the decline in sales tax revenues. City Council supported a reduction strategy to lower transportation spending while maintaining integrity with program objectives. Principles of this strategy were to: maintain the integrity of the Transportation Prioritization approach developed with Council two years ago; scale back system expansion while continuing to make progress on the multi- modal system; achieve sustainable reductions, rather than one-time reductions; take a balanced approach to reductions and include all modes across all programs including CIP projects; maintain leveraged funded CIP projects; and, minimize reductions to maintenance and operations functions. Based on these principles, generally a 15% reduction in operation and maintenance programs and a 50% reduction in enhancement programs were achieved. This approach meant that sidewalk repair, chip and seal, asphalt overlay and other important program budget reductions were minimized to continue to adequately maintain our existing infrastructure. Examples of budget and service reduced during 2002 & 2003 include: elimination of two positions in the planning/operations and project construction work groups; reduction in mowing cycles in transportation right-of-way (an aesthetic issue); slowing the expansion of bicycle and pedestrian system enhancements by 50%; reduction in the number of LED signal replacements; reduced asphalt overlay and chip and seal programs extending the maintenance cycle for city streets from 7 to 10 years to 15 to 20 years; AGENDA ITEM #____V____PAGE__- 3 -__ defer capital funding for the Neighborhood Traffic Mitigation Program, while the education and enforcement components will continue; defer median upgrades; and halt city-funded expansion of the Community Transit Network, focusing existing investments on preserving core elements of the system including pass programs and successful existing transit services. 2004 Budget Reductions The 2004 approved budget reflects a balanced budget incorporating additional reductions based on sales tax projections. Consistent with prior reductions, our focus is to maintain service integrity and a fiscally constrained budget.Also, Transportation continues to identify and implement efficiencies in services and programs to assure resources are wisely managed. The Guiding principles identified for 2002 and 2003 continue; however, a refined set is as follows: maintain integrity of the Transportation Prioritization approach previously developed by Council, in priority order: 1.maintenance and operations, limited/strategic reductions 2.multi-modal system expansion – slow expansion, focusing reductions on projects which increase maintenance responsibilities 3.neighborhood quality of life – defer additional capital investments; achieve sustainable reductions over time, rather than one-time reductions; continue efficiency improvements, such as reducing service in technical support categories where appropriate; and, maintain leveraged funded projects. The initial round of 2004 Transportation budget reductions ($475,000 annually) held operations and maintenance reductions at the 15% level that occurred in 2002/2003, making strategic reductions in the expansion of the multi-modal system. However, the further decline in sales tax revenue, from negative 5.5% to negative 8% (another $300,000 annually), required that operations and maintenance be considered for further reductions. The total annual budget reduction through 2002-2004 is approximately $4.3M annually. Since significant budget reductions began, including the July 2003 downward revenue adjustment, the overall reductions in Transportation include a general reduction in operations and maintenance by 18%, a reduction to the modal expansion/enhancement program by over 50%, and a deferral in neighborhood enhancement projects. In the two sets of 2004 budget reductions, totaling $775,000 annually, examples of additional service level reductions include, but are not limited to: the elimination of two additional FTE’s in the modal planning area and two FTE’s in transportation maintenance; AGENDA ITEM #____V____PAGE__- 4 -__ the reduction of modal system expansion to leveraged-funded projects and limited opportunities that arise for system expansion; the extension of cycles for technical support services such as traffic counts; limiting support for surveying and technical studies; contracting out the Chip & Seal Program; and, the elimination of two fleet vehicles. While a number of other departments are personnel intensive, only approximately 20% of Transportation expenditures have been for personnel. To date, six FTE’s have been eliminated and other personnel expenses have been reduced such as use of overtime and seasonal employees. TEA-21 Funding Through the 2004 DRCOG Transportation Improvements Program (TIP), the city will receive approximately $12M over the next three years (2005-2007). The following project funding is approved. Project Amount Year Boulder Real-Time Transit Information $200,000 2006 th 30 Street Bikelanes; Arapahoe to Pearl $300,000 2006 $2,978,000 2007 Broadway: Pine to Iris Ave Reconstruction $500,000 2005 $126,000 2006 $5,851,000 2007 Elmer’s Two-Mile Trail Connection $1,722,000 (Pool) 2005 Colorado Ave Bikelanes & Sidewalk Project $515,000 (Pool) 2005 Approved By: Tracy Winfree, Director of Public Works for Transportation Attachments: A – 2004 Transportation Budget - Modal Investment Distribution B – Transportation Fund and Transportation Development Fund 2004-2009 Capital Improvements Programs AGENDA ITEM #____V____PAGE__- 5 -__ Attachment A ATTACHMENT A -2004 Approved Transportation Budget Modal Investment Distribution Modal Investment Distribution Mitigation TDM Pedestrian 2% 3% 17% Bike Roadway 15% 42% Transit 21% Year 2004 Approved Budget 2003 Approved Budget2004 Approved Budget TotalTotal $%$% Mode/Functiono/o/mEnhancementsmEnhancements Pedestrian2,079,0333,194,4555,273,48822%2,082,9781,392,8483,475,82617% Bike1,032,7563,522,4344,555,19019%995,7382,115,7693,111,50715% Transit1,244,8881,971,7323,216,62013%2,190,9322,097,9114,288,84321% Roadway6,940,2232,637,3699,577,59240%6,842,3441,609,1578,451,50142% TDM541,302414,213955,5154%352,967265,402618,3693% Mitigatio443,165114,511557,6762%431,9530431,9532% n Total12,281,36711,854,71424,136,08112,896,9127,481,08720,377,999 % of Total51%49%100%63%37%100% includes Funds 180 & 181 - Budget is based on Pedestrian/Bike/Transit Modal Emphasis;