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f <br /> RELATED COUNCIL GOALS AND POLICIES <br /> The council's Vision and Goals Statement with respect to Fair, Stable and Adequate Financial Resources <br /> reaffirms commitment to "a local government whose ongoing financial resources are based on a fair and <br /> equitable system of taxation and other revenue sources and are adequate to maintain and deliver <br /> municipal services." In previous years, council has identified specific work plan items to "identify and <br /> implement funding sources (including possible reallocation of existing sources) for operation, <br /> maintenance and preservation of the transportation system." <br /> Additionally, the City's Financial Management Goals and Policy, A.4, states that the City's municipal <br /> service priority Level 2 (second only to the preservation of the public safety system) is to "maintain and <br /> replace the City's fixed assets, which includes... infrastructure...so as to optimize their life." <br /> COUNCIL OPTIONS <br /> This is a work session and, as such, the council is not required to take any action. However, it would be <br /> timely and prudent for council to use this opportunity to provide advance direction to the city manager <br /> and staff to begin working on specific strategies for balancing the Road Fund budget for FY07 and into <br /> the future. <br /> The two principal strategies available for balancing the Road Fund budget are 1) to reduce the current <br /> service system to the level of existing and projected resources (i.e., $2 million in annual budget reductions <br /> phased in by FY08) or 2) to increase the level of resources to adequately fund the current service system <br /> for FY07 and future years. Regardless of which strategy is selected, it is critical that council and the <br /> manager continue to pursue efforts to sustain existing revenue sources at or above current levels, <br /> including renewed efforts for continuation of the historic County /City Road Fund Partnership Agreement <br /> and funding. <br /> Options available to council in providing the city manager direction for building the FY07 budget are: <br /> Option 1: Council could direct the city manager to build the Road Fund budget based on known, existing <br /> revenue sources, which would require service reductions of approximately $2 million, phased <br /> in during the FY07 and FY08 fiscal years. <br /> Option 2: Council could direct the city manager to develop an FY07 proposed Road Fund budget based <br /> on funding assumption to include new revenue sized to address not only the projected ongoing <br /> operating deficit in street operations and maintenance but which would also generate <br /> additional revenue to be dedicated to the backlog of unfunded projects in the Pavement <br /> Preservation Program. <br /> This funding package could include 1) funding the Street Trees Program with a combination of <br /> an Urban Forestry Fee and a shift in funding for certain activities to the Stormwater Fund and <br /> General Fund, as appropriate; 2) a proposal for street lighting assessment districts to provide <br /> dedicated funding for street light maintenance; and/or 3) a proposal for reestablishing the <br /> previously- repealed Transportation System Maintenance Fee to shore up funding for the <br /> remaining Road Fund O &M activities and to address the annual funding gap in the Pavement <br /> Preservation Program. <br /> Option 3: Council could direct the City Manager to do any variation of the above options. <br /> 5 <br />