Transportation fund shifts project‑management costs into operating and proposes ADA, signal and streetlight investments

City transportation staff briefed the Budget Review Commission on the Transportation Fund proposed budget for FY25-26, describing revenue sources, operating changes and capital transfers tied to the 0.2% sales tax and state highway-user allocations.

Staff noted the fund is a special revenue fund dedicated to street construction, reconstruction and maintenance. The proposed budget estimates $33.6 million from the city’s 0.2% transportation sales tax for FY25-26 and identified state-distributed highway-user revenues (HEUF) and other sources. Transportation proposed shifting a portion of the capital project-management (CPM) group’s cost into operating; the shift results in 10 positions now funded out of operating rather than projects. Staff said some of those positions handle program-wide project-management tasks that supported multiple funds (transportation, water and general fund projects) and should be funded from operating.

Proposed operating requests included a phase‑2 ADA transition plan (partially funded from the 0.2% sales tax), transit stop shelter painting, two ITS signal/operations staff, vehicles for field crews, dented‑pole replacement contracts and additional streetlight lineman contracting to address poles in locations that require specialized certified crews. Transportation staff flagged the fund’s capital program and five‑year plan: the proposed CIP calls for significant carryforward spending on delayed or unstarted projects and a higher near-term transfer to capital that will reduce the fund’s beginning balance over the next three years if the current plan is implemented.

Ending: Commissioners asked staff for more detail on the pavement condition index (PCI) distribution across lane miles, and staff said a third‑party pavement condition study is being finalized and will be used to set a prioritized five‑year program.