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~~ / <br />4. Justification of request; consequences if denied; impact on other funds: <br />This proposal is consistent with the City Manager's intentions as expressed to the City Council on <br />November 12, 2008. Without new revenues of approximately $3 million which can be practically and <br />realistically implemented by July 1, 2009, the city's Road Fund will immediately need to begin to <br />implement a strategy of severe service reductions to correct the structural deficiency which threatens to <br />send the fund into insolvency sometime in the fall of 2009. <br />There will be no net impact on the budgets or financial positions of either the General Fund or the two <br />city utility funds as a result of this proposal, although the utility funds will need to reflect user rate <br />increases proportionate to the new operating expense being imposed on them (an approx. 8 % increase in <br />monthly utility user fees). <br />5. Specific Council goal/action priority related to this request, if any: <br />This budget strategy is a key component in achieving the outcomes identified in the City Council's <br />Transportation Initiative, which is to "Develop mechanisms to adequately fund our transportation system <br />for cars, trucks, bikes and pedestrians including maintenance and preservation and capital reconstruction." <br />6. Service category and specific service profile strategy related to the request: <br />Transportation Services -Strategy 1: Prioritize operations and maintenance services and match service <br />levels to projected revenues. <br />Transportation Services -Strategy 2: Increase and stabilize funding for preservation of the <br />transportation system. <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 municipal <br />services." In previous years, council has identified specific work plan items to "identify and implement <br />funding.sources (including possible reallocation of existing sources) for operation, maintenance and <br />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 Leve12 (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 />