Friday, December 08, 2006

An Exchange of Funds Allows Brisbane Residents to be Better Served

As a member of the City/County Association of Governments (C/CAG), which deals with issues that affect a city’s quality of life (in areas such as transportation, air quality, stormwater runoff, etc.), the City of Brisbane is entitled to request for the allocated federal grant funds set aside for Brisbane, given project funding needs. One of these funds is the Surface Transportation Program (STP), which is used specifically towards street improvement projects. $31,000 had been allocated by C/CAG for Brisbane’s STP Fund, but with $100,000 being the minimum grant amount a City may apply for, the City would have had to pay an additional $70,000 just to receive the $31,000 in federal grant assistance. Also, these funds would only allow for California state streets to be improved, which in Brisbane consists of only Guadalupe Canyon Pkwy and Bayshore Blvd. Because the City, including the Public Works Department in this situation, aims to serve the residents of Brisbane, the City did not apply for federal grant assistance. Rather, it is the City's intent to use its funds towards making any necessary improvements to the streets used more frequently by locals. When the City of San Bruno learned of the City’s decision, they offered Brisbane a portion of their Gas Tax Fund in exchange for Brisbane’s allocated STP Fund, which, otherwise would have been relinquished had the City not applied for them.

Seeing this to be a great opportunity to increase the City’s revenue base, Brisbane agreed to San Bruno’s offer, and under the terms of the Exchange Agreement, the City of Brisbane will transfer to San Bruno $31,000 in STP Funds in exchange for $23,250 of San Bruno’s Gas Tax Funds. The net effect is an increase in the gas tax revenue received by the City, further contributing to the City’s General Fund. This leverages the City to be in a better position financially, and able to further meet the needs of its citizens.

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