Yelm staff outline Fuller Footpath and street-fund priorities as grants and REET slow

City public-works staff told the Yelm City Council on Oct. 7 that the Fuller Footpath design is finished but that the city's road-and-street fund (Fund 316) must cover several higher-priority transportation projects before committing to construction.

Why it matters: City staff said constrained revenues and uncertain external grants require the council to prioritize projects that address traffic and safety impacts from new development.

Public-works staffer Cody reviewed Fund 316 finances and an itemized two-year spending plan. He told councilors the fund shows about $2,572,000 in revenue and about $759,000 in expenses for the immediate horizon, leaving limited available cash for additional construction. "If you gave me a $10,000,000 check, that a $20,000,000 check, all these will be done," Cody said, summarizing the gap between needs and available funds.

Key projects and estimated costs (staff-provided figures and attributions): - Morris Road roundabout (to pair with Bald Hill roundabout): staff estimate approximately $3 million. - Roten Road improvements: staff estimate approximately $5 million (design grant in hand; timing tied to federal/state funding availability). - Longmire/State Route 510 intersection: staff said a roundabout is likely and that the need is driven by upcoming Tomah Boulevard development; required funding is contingent on development impact-fee payments. - Fuller Footpath/Activated Alleyway: design complete; staff estimate a total project cost in the range of $2 million when finished; right-of-way purchases and preliminary design already spent roughly $230,000 this year (staff figure), leaving a funding gap for construction.

Staff also explained revenue constraints and restrictions: - Impact fees: funds collected from new development based on traffic-generation studies. Staff said impact fees can only be used for projects eligible under the city's transportation improvement plan; they cannot be used to fund a footpath that is classified as a non-transportation walking path. - Real-estate excise tax (REET): revenue is driven by home sales and can generally be used for new construction, including sidewalks and repaving. Staff noted REET receipts this year were lower than budgeted (about $227,000 received so far) while impact-fee receipts were comparatively high (about $925,000), creating mismatches between available funds and eligible uses. - Grants: the city relies heavily on state and federal grants, but staff cautioned that some grants are uncertain this year amid changing state and federal budgets.

Councilors asked how to ensure city dollars remain focused on Yelm residents and how timelines for specific sidewalks would align with new development. Cody said the Mosman connector project has federal funding allocated and should advance next year; other projects are linked to when developers pay impact fees or when grant reimbursements arrive.

Ending: City staff asked councilors to prioritize projects; staff recommended Morris Road roundabout, Roten Road and Longmire/510 intersection as immediate priorities ahead of constructing the Fuller Footpath. Councilors said they will review the options as part of the 2026 capital budgeting cycle and consider the timing of grant reimbursements and impact-fee receipts before committing to construction.