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SIX-YEAR FORECAST: SPECIAL REVENUE FUNDS
<br />
<br />GAS TAX FUND (SECTION 2103)
<br />(FORMER PROPOSITION 42 FUNDING)
<br />
<br />For 2009-10, the Legislature and Governor enacted a package of major statutory and
<br />budgetary changes to transportation funding. These changes increased the Legislature’s
<br />flexibility over the use of transportation funds, resulting in ongoing General Fund relief by
<br />paying the debt service on highway and road bonds from fuel excise tax revenues. This
<br />package of changes is commonly known as the Fuel Tax Swap. Effective July 1, 2010, the
<br />annual funding for streets and roads received by the City under Proposition 42 were replaced
<br />with Gas Tax funds. There is no significant change in the total amount of funding or intended
<br />use, just the funding source.
<br />
<br />Analysis
<br />Based on the State Department of Finance’s January 2019 report r evenue is expected to
<br />increase minimally in future years. This fund supports capital projects only, so no personnel
<br />costs are budgeted to the fund. It is anticipated that these funds will be fully expended for
<br />streets infrastructure projects.
<br />
<br />
<br />
<br />Assumptions
<br /> Revenue projections are based on the State Department of Finance January 15, 2019
<br />estimates anticipating an increase of 1% in 2021-22 and subsequent years.
<br /> Since funds are allocated for streets and roads infrastructure improvements, the forecast
<br />assumes full expenditure of each annual allocation.
<br />
<br />
<br />Gas Tax 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
<br />(Section 2103) Fund 142 Actual Actual Projected Projected Projected Projected Projected Projected Projected
<br />Beginning Fund Balance 1,050,884 938,096 1,140,158 1,092,200 846,798 601,396 283,465 (113,320) (595,796)
<br />Revenue
<br />Gas Tax (Section 2103)234,076 343,760 310,732 747,098 747,098 754,569 762,115 769,736 777,433
<br />Other Revenue 1,656 5,865 12,000 7,500 7,500 7,500 7,500 7,500 7,500
<br /> Total Revenues 235,732 349,625 322,732 754,598 754,598 762,069 769,615 777,236 784,933
<br />Expenditures
<br />Personnel 26,933 53,917 - 1,000,000 1,000,000 1,080,000 1,166,400 1,259,712 1,360,489
<br />Non-Personnel 321,587 93,646 370,690 - - - - - -
<br /> Total Expenditures 348,520 147,563 370,690 1,000,000 1,000,000 1,080,000 1,166,400 1,259,712 1,360,489
<br />Annual Surplus/(Shortfall)(112,788)202,062 (47,958)(245,402)(245,402)(317,931)(396,785)(482,476)(575,556)
<br />Ending Fund Balance 938,096 1,140,158 1,092,200 846,798 601,396 283,465 (113,320)(595,796)(1,171,352)
<br />78
<br />100
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