From: Gerald Fisher
Sent: Tue Aug 29 18:19:32 2017
To: Dan Huff (Molalla)
Subject: interesting
Importance: Normal
Attachments: 20170828 Budget Breakdown for Street Fund - City Edit.xlsx; Thought you would find the following head scratching from our consultant as interesting. Let’s see what they come up with. From: Gerald Fisher [mailto:gfisher@cityofmolalla.com] Sent: Tuesday, August 29, 2017 6:16 PM To: Matt Bell <mbell@kittelson.com> Cc: Nicholas Gross <ngross@kittelson.com> Subject: RE: 16-11 TSP - Street Fund and SDC Fund Since 2011-2012 and UR Background Hi Matt, See attached. Assuming that each year you start out your beginning fund balance covering the first 3 months of operation gives you the amounts shown in the revised spreadsheet I’ve attached. Edited formulas and numbers are in red. Take a look and let me know if that makes sense. The issue you’ve brought up is one that agencies have been grappling with for some time. Gas Tax and franchise fees don’t keep up with the cost to operate and maintain a roadway. So, what has to happen without funding is we reduce services, cut contingencies, and then when things get really bad we cut staff. This is the drain we have been circling since the 1990’s. If funding for street maintenance happens through a fee then that give us breathing room. The rest of it will be cuts in service then staff reduction without cost controls for inflation, personnel costs, and generating enough revenue to fund the operations of streets. If your costs keep going up and your revenue doesn’t match then you will eventually go to failure. Please send me an example of what you are trying to create in the form of a technical memo so I can help you fill in the blanks. Regards, Gerald Fisher, P.E. | Public Works Director City of Molalla 117 N Molalla Ave. | PO Box 248 |Molalla, OR 97038 Office: 503.829.6855 | Direct: 503.759.0218 CONFIDENTIALITY NOTICE: The information contained in this email message, including any attachments, is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient and have received this communication in error, please contact the sender by reply email and destroy all copies of the original message. Thank you. From: Matt Bell [mailto:mbell@kittelson.com] Sent: Tuesday, August 29, 2017 1:51 PM To: Gerald Fisher <gfisher@cityofmolalla.com> Cc: Nicholas Gross <ngross@kittelson.com> Subject: RE: 16-11 TSP - Street Fund and SDC Fund Since 2011-2012 and UR Background Gerald, I have updated the spreadsheet per our conversation. As you can see on the far right, we are projecting a deficit of approximately 16 million over the 23 year period. This is primarily due to the increases in street revenue versus the increases in personnel service and materials and services. I am hoping you can help us sort this out, perhaps with a percentage increase in state gas tax revenue to reflect the 2040 population growth (approximately 2.7 percent per year over the 23 year period) and/or a decrease in the materials and services. Please feel free to call Nick or me with any questions. Matthew Bell Senior Planner Transportation Engineering / Planning 503.535.7435 (direct) From: Gerald Fisher [mailto:gfisher@cityofmolalla.com] Sent: Monday, August 28, 2017 11:51 AM To: Matt Bell Cc: Gail Curtis Subject: 16-11 TSP - Street Fund and SDC Fund Since 2011-2012 and UR Background Hi Matt, In 17-18 State Share Revenue is removed and sent to the general fund because parks is no longer part of streets. In 15-16 Personnel Services is moved from Materials and Services into its own category and reallocated. Sidewalk and Street repair is unclear as to how much was street and how much was sidewalk. I opened up the subcategories so you can see the totals spent on streets versus other stuff that when added together has a different total by category. The SDC fund is self-explanatory. I’ve also included the UR background information. Let me know if you have any other questions. Thanks. Regards, Gerald Fisher, P.E. | Public Works Director City of Molalla 117 N Molalla Ave. | PO Box 248 |Molalla, OR 97038 Office: 503.829.6855 | Direct: 503.759.0218 CONFIDENTIALITY NOTICE: The information contained in this email message, including any attachments, is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient and have received this communication in error, please contact the sender by reply email and destroy all copies of the original message. Thank you.