DATE: June 18, 2025
TO: Honorable Mayor and City Councilmembers
FROM: Development Services Department
TITLE: RESOLUTION APPROPRIATING FUNDS AND APPROVING THE CITY'S SENATE BILL 1 PROJECT LIST FOR FISCAL YEAR 2025-26
RECOMMENDATION
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Staff recommends that the City Council adopt a resolution appropriating $4,545,901 in Road Maintenance and Rehabilitation Account (RMRA) funds provided by Senate Bill 1 ("SB1") to SB1 Gas Tax Fund 265 and approve the City's SB1 project list for Fiscal Year (FY) 2025-26.
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BACKGROUND AND ANALYSIS
In April 2017, SB1, the Road Repair and Accountability Act, was enacted into law. It provides cities with significant additional funding for a broad range of transportation improvements including constructing new, or maintaining existing, transportation infrastructure. The law includes certain provisions to ensure government accountability to the public, which require adoption of improvement plans as part of a separate resolution.
The State levies fuel taxes and distributes a portion of the revenue to cities and counties as Highway User Tax Account (HUTA) funds. This fiscal year, the City received $4,994,875 in HUTA funds which is currently available for use by Public Works Street Maintenance Division to address potholes and other maintenance items. Under SB1, cities and counties receive additional funds raised from fuel taxes and vehicle registration taxes from the RMRA. Eligible uses of RMRA are similar to, and as broad as, current HUTA funds. The State Streets and Highways Code Section 2030(a) describes eligible uses of the RMRA fund to include "basic road maintenance and road rehabilitation projects, and critical safety projects."
Since the RMRA was enacted, the City Council has appropriated the following RMRA funds by resolution:
* $1.00 million in October 2017
* $3.13 million in April 2018
* $2.94 million in April 2019
* $2.69 million in April 2020
* $3.48 million in April 2021
* $4.03 million in June 2022
* $4.28...
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