Page 477 - FY 2020-21 Blue Book Volume II

SPECIAL GAS TAX IMPROVEMENT FUND

BASIS FOR THE PROPOSED BUDGET

The 2020-21 Proposed Budget includes the Special Gas Tax Improvement (Gas Tax) Fund and Road Maintenance
and Rehabilitation Program Special, otherwise known as the Senate Bill 1 (SB 1) Fund, and relates to current year
funding as follows:

Amount % Change

2019-20 Adopted Budget $ 174,174,670

2020-21 Proposed Budget $ 170,508,675

Change from 2019-20 Budget $ (3,665,995) (2.1%)

GAS TAX FUND

The Gas Tax Fund receives monies from the State's Excise Tax on the sale of gasoline and from federal
reimbursements through the Surface Transportation Program - Local. Funding to the cities and counties is
apportioned through various formulas in accordance with Streets and Highways Code Sections 2103, 2105, 2106,
and 2107 and through annual federal legislation relative to the Surface Transportation Program as follows.

 Section 2103: Revenues equal to 17.3 cents per gallon of gasoline. Allocation to cities is based on
population.
 Section 2105: Allocates 11.5 percent of the tax revenues in excess of 9 cents per gallon among cities and
counties based on population.
 Section 2106: Revenues equal to 1.04 cents per gallon, with allocations to the State’s Active Transportation
Program, the 58 counties, and the 481 eligible cities. Each city is allocated $400/month. After various
allocations, the remaining funds are allocated to counties and cities.
 Section 2107: Revenues equal to $1.314 cents per gallon of gasoline, 1.8 cents per gallon of diesel, and
2.59 cents per gallon of liquefied petroleum gas. Funds are distributed to the City primarily based on
population.

The allowable use of gas tax funds include the following:
a) The research, planning, construction, improvement, maintenance, and operation of public streets and
highways and public mass transit guideways, their related facilities, the payment for property taken or
damaged for those purposes, and the associated administrative costs. Ineligible costs include maintenance
and operating costs for mass transit power systems and mass transit passenger facilities, vehicles,
equipment, and service.
b) The payment of principal and interest on voter-approved bonds issued for eligible purposes.

BUDGET HIGHLIGHTS

 Bureau of Street Services: Funds are provided for the Pavement Preservation Program and Street
Maintenance Program to prevent further deterioration in the overall condition of the City street system.
Funds are also provided for street sweeping of improved roadways to maintain clean and aesthetic
conditions.

939