Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Infrastructure topic
No spam. Unsubscribe anytime.
Committee recommends $8M appropriation and $6M interfund loan to finish I‑580 Patterson Pass diverging-diamond project
Summary
The Tracy Finance Committee voted to recommend that City Council appropriate $8 million from the Tracy Infrastructure Master Plan fund and authorize a $6 million, 20‑year interfund loan from general fund reserves at the LAIF rate to close a shortfall on the I‑580/Patterson Pass diverging‑diamond interchange project (CIP 73,147).
The Finance Committee on April 29 recommended that the City Council authorize an $8 million appropriation from the Tracy Infrastructure Master Plan (TIMP) traffic fund to the Interstate 580/Patterson Pass Road–International Parkway diverging‑diamond interchange improvements project (CIP 73,147), and that the Council approve a $6 million interfund loan from general fund reserves to the TIMP fund to be repaid over 20 years at the current Local Agency Investment Fund (LAIF) rate.
Felicia Glendo, the city’s budget officer, told the committee the project has been a multiyear capital program. The project received approximately $24.9 million in state construction grants; total project commitments to date are roughly $52.7 million. Staff reported the updated project estimate is about $61.9 million, producing an $8.0 million funding shortfall.
Glendo said the TIMP traffic impact fee program limits eligibility to about $29.6 million for this project. The project’s current traffic‑fee commitment stands at $17.0 million; adding the requested $8.0 million would bring the total to $25.0 million, within the program’s eligible cap. The TIMP fund currently holds about $2.0 million in cash; the remainder would be covered by the proposed interfund loan.
Under staff’s recommendation the $6 million loan from general fund reserves would carry a 20‑year term with annual payments of approximately $422,000, with repayment expected to begin in FY 2026 as traffic impact fees are collected and credited to the TIMP fund. Glendo said staff considered available grants, gas tax, Measure K and fees when assembling the funding package and that no other eligible internal fund sources were available under the city’s interfund loan policy.
Committee members asked whether alternative funding or shorter loan terms were available. Staff said the 20‑year term was chosen to match projected cash flows in the impact fee program and to maintain manageable annual payments; if impact fees are received sooner the loan could be repaid earlier.
A motion to recommend Council adoption of a resolution authorizing the appropriation and interfund loan passed on a roll call vote: Chairperson Evans — yes; Co‑Chairperson Abercrombie — yes.
