1. Public Works Road Fund Overview May 2, 2013 Tanya Heaton, PW Budget Manager

2. Current Situation Shrinking revenue Cost increases Increasing service requests Expenses exceed revenue

3. Road Fund Focus   Customer Service   Road Safety   Road Preservation   Stewardship

4. Sweet Creek Road Current grant project, work began summer 2012. Damage to the road due to retaining wall failure. 10 years of progressive deterioration.

5. 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)

6. Annual Operating Revenue Millions Updated: April 2013 FY 12-13 Last SRS payment Annual revenue decreases $17 million in six years

7. 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

8. 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

9. Road Fund Revenue Changes

10. Road Fund Expense Changes

12. Sweet Creek Project Bedrock was deeper than anticipated and warranted changes during construction.

13. Fund Balance History Millions Updated: April 2013 FY 12-13 Last SRS payment Draw down of Fund Balance to provide services over more years

14. Why are Contingencies and Reserves so Important?   Savings accounts   Planning tool   Stewardship of reserves provides time to respond to economic factors and meet goals

15. 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.

16. Sweet Creek Project Bridge Caps were required to support bridge beams and the roadway.

17. What do we see for the future? Revenue Flat at lower level Steady cost increases Decreasing ability to meet service requests Shrinking Reserves

18. Forecast

19. Budget Concerns   Reducing the gap   Cost escalations   Budget variables   Balancing operations and reserves with resource requests

20. 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.

21. Coming Soon   Balancing needs with resources   Revenue   Operations, Maintenance, and Preservation   Emergency response   Safety Improvements   Expansion ~ Territorial Road, Goshen

24. Sweet Creek Road Grant supported project. Total cost of project $6.4 million, received grants of $5.6 million. Balanced with reserves.