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While this strategy was identified for the Board during our 2016 budget <br />presentations, the impact to the fund is now coming more clearly to light. <br />The County Engineer and Public Works Director have removed key projects from <br />the 2016 six year plan attempting to slow the burn rate of reserves. We are <br />attempting to limit preservation spending to approximately $2 million a year for <br />the next several years. That said the current preservation demand will bring the <br />Road Fund reserve to $5 million at the end of 2019. Further expensing of the <br />reserve will expose Public Works to unacceptable financial risk. Expensing <br />below $3 million in reserves is strongly discouraged by staff. <br />The burn rate on Road Fund reserves is unavoidable. Preservation <br />(rehabilitation of existing infra -structure) projects typically have no state or federal <br />funding sources (we rely on CAPP and RAPP) . The vast bridge network of the <br />County is significantly non-compliant with current bridge rail requirement. We <br />have eliminated the under 20 program from the 2017 six year proposal. We <br />cannot continue pushing Vantage Highway back, as deferred maintenance only <br />drives the cost of rehabilitation upward. Loss of $2 million in anticipated levy <br />shifts places additional financial stress on the fund. The return of $1 million per <br />year beginning in 2019 is insufficient to stem the burn rate on fund reserves. <br />Supplemental revenue is required if the program is going to maintain the network <br />of roads and bridges countywide — well into the future. <br />If supplemental funding is unlikely, Public Works will prepare a proposal for <br />Board consideration during 2018 budget preparation. The proposal will evaluate <br />high risk and high cost infra -structure — likely recommending abandonment of <br />same. The impact of this decision is huge for the County. Closing roads and <br />bridges is already a reality for King County. <br />FISCAL IMPACTS: <br />We are taking appropriate actions adjusting the six year transportation program <br />recognizing the demand on fund reserves. More preservation demand is <br />inevitable, given our current business model focus on maintenance and the <br />bridge program. We will continue seeking any and all supplemental funding <br />sources for preservation projects. In the absence of supplemental funding, our <br />efforts reducing the burn rate of fund reserves in warranted. <br />ATTACHMENTS: <br />None. <br />Page 2 of 2 <br />PUBLIC WORKS BOARD OF COUNTY COMMISSIONERS WORK SESSION STAFF REPORT <br />