COUNTY OF ALBEMARLE

 

EXECUTIVE SUMMARY

 

 

AGENDA TITLE:

Revenue Sharing Ė Fiscal Year 2007

 

 

SUBJECT/PROPOSAL/REQUEST:

Approval of resolution allowing the County to participate in VDOTís Revenue Sharing program

 

 

STAFF CONTACT(S):

Tucker, Foley, Davis, Graham, Benish, Wade

 

 

LEGAL REVIEW:   Yes

 

 

AGENDA DATE:

December 13, 2006

 

ACTION:     X                        INFORMATION: 

 

CONSENT AGENDA:

  ACTION:                             INFORMATION: 

 

 

ATTACHMENTS:   Yes

 

 

REVIEWED BY:

 

 

BACKGROUND:

VDOTís Revenue Sharing program provides the opportunity for the County to receive an additional $1,000,000 for road improvements. The County has participated in this Program since 1988; however, the program has changed significantly this year.  The most significant change to the program is a new tiered approach to prioritizing applications and awarding funds, which is oriented to encouraging a larger match of funds from the locality than the previous dollar-for-dollar match under the old program requirements.  An explanation of the changes to the Revenue Sharing Program and, specifically, the tier concept can be found in the attached letter from VDOT (Attachment A).  

 

 

STRATEGIC PLAN:

Goal 3: Develop Policies and Infrastructure Improvements to Address the Countyís Growing Needs.

 

 

DISCUSSION:

The Revenue Sharing Program is a competitive funding program with a total statewide funding of $15 million for FY07.  In order to provide the most competitive application, the County will need to provide a greater amount of match than in previous years to qualify under the Tier One category.  Tier One projects will be funded first before proceeding to other Tiers and the priority of funding will be based on the amount of local match above a dollar-for-dollar match.  Specifically, VDOTís policy for Tier One states:

 

Tier One provides funding when the governing body commits more than $1 million in local funds for a $1 million match. The localityís total requests are considered for tier one funding. If requests exceed funds available, tier one requests will be prioritized based on the amount of local funds committed above the matching funds. Please note, local matching funds must be available for use by April 1, and those in excess of $1 million match, must be spent prior to receiving state matching funds. The use of state Revenue Sharing funds requires that state laws, policies, and procedures must be followed.

 

The Revenue Sharing Program is expected to be very competitive this year under the new guidelines. Staff is recommending providing a $1.5 million match for the Meadow Creek Parkway. This will allow the Countyís request to meet the Tier One criteria and make the request more competitive. Since this is the first year under the new program criteria, there is little history or guidance from VDOT on what other localities will be financially committing to the program, or how competitive a $1.5 million local match will be.

 

If funded, this would result in an additional $2.5 million for the Meadow Creek Parkway.  VDOT Residency staff has recommended applying FY 07 Revenue Sharing funds to the Meadow Creek Parkway project to ensure that sufficient funds are available to cover the current estimated funding shortfall and ensure the project stays on schedule for construction. To date, the County has authorized VDOT to move prior revenue sharing funds and prior secondary fund allocations from the Free State Road, Old Ivy Road and Proffit Road projects to cover some of the shortfall (no funds have

been moved from Jarmanís Gap Road or Georgetown Road at this time). As a result, approximately $2.4 million of previously allocated Revenue Sharing funds from Old Ivy Road and Proffit Road will be transferred to the Meadow Creek Parkway ($1.2 million County share and VDOT match).  However, there is recent concern at the VDOT Residency Office that there is still a shortfall of $2.0 to $2.5 million in funding for the Parkway based on the current project cost estimate.  In early November, it appeared that approximately $4.0 million of the estimated $4.6 million shortfall had been covered. But last week the Residency staff was advised that a total of $1.5 million thought to be available to transfer to MCP, may not be available for transfer.  VDOT staff will be available at the December 13th meeting to provide further information on the status of funding. Providing Revenue Sharing Funds to the Meadow Creek Parkway project will ensure sufficient funds will be available to cover this project.  Any funds from other sources or prior allocations from other projects which may become available in the future could then be transferred to the other high priority local projects such as Jarmanís Gap Road and Georgetown Road.

 

BUDGET IMPACT:

The Countyís match of $1.0 million has been allocated in the Capital Improvement Program.  The $500,000 is available from funds allocated to the Transportation Program in the CIP.  The $1.5 million will leverage an additional $1.0 million in VDOT funds to be used toward high priority road improvements.

 

 

RECOMMENDATIONS:

Staff recommends that the Board of Supervisors adopt the resolution to participate in Revenue Sharing for FY 2007 found on Attachment B.

 

 

ATTACHMENTS

Attachment A: VDOT Revenue Sharing Letter

Attachment B:  Resolution

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