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Public Works Road Fund Overview
May 2, 2013
Tanya Heaton,
PW Budget Manager
Current Situation
Shrinking revenue
Cost increases
Increasing service requests
Expenses exceed revenue
Road Fund Focus
Customer Service
Road Safety
Road Preservation
Stewardship
Sweet Creek Road
Current grant project, work began summer 2012. Damage to the road due to retaining wall failure. 10 years of progressive deterioration.
Road Fund - Key Points
One major revenue stream significantly influenced by economy
Dedicated State Revenue --restricts use to road purposes
FY 13-14 Beginning Fund Balance ~ $29m
FY 13-14 Ending Fund Balance ~ $14m (Reserves)
0
10
20
30
40
50
60
FY 08-09ODOT
Revenue Share
New Normal
Annual Operating RevenueM
illi
on
s
Updated: April 2013
FY 12-13Last SRS payment
Annual revenue decreases $17 million in six years
What are we doing?
Plan and reach for a balance of excellent and sustainable services Seeking revenue opportunities
Building project partnerships
Reducing expenses
Spending reserves
Budget Direction
FY 12-13 Begin reductions to close Road Fund Gap
Reduce operational expenses by 20%
FY 13-14 Limited Growth – Personnel Services at
contract level and Materials &Services at CPI of 1.6%
Maintain FY 12-13 service levels when feasible
Road Fund Revenue Changes
Road Fund Expense Changes
Sweet Creek Project
Bedrock was deeper than anticipated and warranted changes during construction.
Fund Balance HistoryM
illi
on
s
Updated: April 2013
FY 12-13Last SRS payment
Draw down of Fund Balance to provide services over more years
Why are Contingencies and Reserves so Important?
Savings accounts
Planning tool
Stewardship of reserves provides time to respond to economic factors and meet goals
Sweet Creek Project
The site is very constrained by the river on one side and a vertical rock bluff on the other, maximum width is 23 feet.
Sweet Creek Project
Bridge Caps were required to support bridge beams and the roadway.
What do we see for the future?
Revenue Flat at lower level
Steady cost increases
Decreasing ability to meet service requests
Shrinking Reserves
ForecastFY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19
Lane County Road Fund Proposed Projected Projected Projected Projected Projected
REVENUE
[1] New Resources 28,196,610 28,768,288 29,204,286 29,677,601 30,249,717 30,671,477
[2] Beginning Fund Balance 29,535,882 14,094,862 11,382,367 7,942,755 6,307,149 4,728,907
[3] TOTAL REVENUE 57,732,492 42,863,150 40,586,653 37,620,357 36,556,866 35,400,384
OPERATING EXPENDITURES
[4] Personnel Services 16,550,306 17,265,337 14,317,763 14,414,867 13,768,776 13,808,339
[5] Materials & Services 15,755,731 15,848,532 13,955,468 14,513,686 14,262,464 14,597,694
[6] Capital Expenses 82,200 83,515 84,935 86,464 88,193 89,957
[7] Fiscal Transactions 371,719 371,719 367,819 373,919 377,769 381,319
[8] Weigmaster Sheriff's Office 0 0 0 0 0 0
[9] Management Services 305,569 311,680 317,914 324,272 330,758 337,373
[10] SUB-TOTAL OPERATING EXPENDITURES 33,065,525 33,880,783 29,043,898 29,713,208 28,827,959 29,214,682
[11] Reductions to Balance 0 (6,000,000) 0 (2,000,000) (600,000) (2,000,000)
[12] ADJUSTED OPERATING EXPENSES 33,065,525 27,880,783 29,043,898 27,713,208 28,227,959 27,214,682
[13] CAPITAL EXPENDITURES
[14] Capital Projects & Contracts 6,614,978 3,600,000 3,600,000 3,600,000 3,600,000 3,600,000
[15] SUB-TOTAL CAPITAL EXPENDITURES 6,614,978 3,600,000 3,600,000 3,600,000 3,600,000 3,600,000
[16] Transfer to SO 3,957,127 0 0 0 0 0
[17] TOTAL ROAD FUND EXPENDITURES 43,637,630 31,480,783 32,643,898 31,313,208 31,827,959 30,814,682
[18] ROAD FUND BALANCE 14,094,862 11,382,367 7,942,755 6,307,149 4,728,907 4,585,702
CONTINGENCIES & RESERVES
[19] Prudent Person Reserve 5,741,000 4,315,243 4,380,643 3,561,312 3,024,972 3,067,148
[20] Road & Bridge Emergency Contingency 2,800,000 2,800,000 1,400,000 938,000 628,460 550,000
[21] Retiree Benefits Reserve 1,275,000 1,275,000 0 0 0 0
[22] Reserve for Future 2,598,000 1,500,000 0 0 0 0
[23] Seasonal Cash Flow 1,265,000 900,000 900,000 900,000 900,000 900,000
[24] Unappropriated Reserve 0 0 0 0 0 0
[25] SUB-TOTAL CONTINGENCY & RESERVES 13,679,000 10,790,243 6,680,643 5,399,312 4,553,432 4,517,148
[26] AVAILABLE FUND BALANCE 415,862 592,124 1,262,112 907,837 175,475 68,555
Budget Concerns
Reducing the gap
Cost escalations
Budget variables
Balancing operations and reserves with resource requests
Sweet Creek Project
Last concrete slab being lowered into place. 105 slabs were used to build 7900 linear foot of foundation for the roadway. Each slab is 4ft wide and 30in deep
with lengths from 50 to 80 feet.
Coming Soon
Balancing needs with resources
Revenue Operations, Maintenance, and
Preservation Emergency response Safety Improvements Expansion ~ Territorial Road, Goshen
Sweet Creek Road
Grant supported project. Total cost of project $6.4 million, received grants of $5.6 million. Balanced with reserves.