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2020-3-Resolution No. 2020-003 Recorded 1/14/2020REVIEWED LEGAL COUNSEL Recorded in Deschutes County CJ2020-3 Nancy Blankenship, County Clerk Commissioners' Journal 01 /14/2020 8:12:15 AM 2o2aa For BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON A Resolution Appropriating New State Funds in the Deschutes County 2019-2020 Budget RESOLUTION NO. 2020-003 WHEREAS, Deschutes County will receive new State funds through the biennium estimated at $8,234,000; and WHEREAS, these new State funds need to be appropriated; and WHEREAS, ORS 294.326(2) allows the appropriation and expenditures of new funds designated to specific purposes; now, therefore, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, as follows: Section 1. That the following funds be budgeted: Revenue Special Transportation Fund (Fund 1501 State Funds $ 3,023,367 TOTAL REVENUE: $3,02_� Section 2. That the following appropriations be made within the 2019-2020 County Budget: Appropriation Special Transportation Fund (Fund 150) Program Budget TOTAL APPROPRIATION $3,023,367 PAGE 1 OF 2-RESOLUTION NO.2020-003 Section 2. That the Chief Financial Officer make the appropriate entries in the Deschutes County Financial System to show the above appropriations. DATED this day of Lh_6_1 , 2020. BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON PA TI ADAIR, Chair ANTHONY DEBONE, Vice -Chair PHIL G. HE DERSON, Commissioner PAGE 2 OF 2-RESOLUTION NO.2020-003 M Q c m N O N O N U1 [M M N E M M M M .LL... N O N O 0 M M O C O C ` N 0 O V U ro Q E F E rn m � � w U a)O c E l0 = O ❑ E � o cn U o O o m = O J E LL a � o v D_ T � C U � O UJ m c j O c O 0 U U N d _ a � c U N � Oo N Cl) M O O CO O O N N C U1 E O] G) N Q E N 0 U Z � c m o 0 J d 00 E N d m 7 TC-jocnransportation regon artment Statewide Transportation Improvement Fund Allocation Estimate, December 2019 Update Introduction ODOT has completed the annual update to the Statewide Transportation Improvement Fund (STIF) allocation estimate. For most Qualified Entities (QEs),' the revenue estimates are greater than the December 2018 forecast. The increase is primarily due to the better than expected tax compliance rate. Some QEs might see larger formula gains than others due to relative gains in a QE's share of payroll. This forecast is updated annually with the state revenue forecast and includes the most current employment payroll data from the Oregon Employment Department. Estimate Assumptions The forecast is still somewhat conservative because there is just one year of historical data to predict future revenues. ODOT will only distribute the revenue it receives, which may be more or less than this estimate, up to each individual QEs approved STIF Plan funding limit for STIF Formula. Updated estimates for the Formula, Discretionary, and Intercommunity Discretionary funds for Fiscal Year (FY) 2019-2021, less the $10.1 million STIF transfer to the Special Transportation Fund (STF), and a new forecast for FY 2022-2023 are summarized in the table below. Funds Dec. 2018 Dec. 2019 Transfer from Dec. 2019 Dec. 2019 Forecastfor Forecastfor STIF to STF, Forecastfor Forecastfor FY 19-21* FY 19-21* July 2019** FY 19-21 less FY 22-23 transfer to STF Formula Fund $201.9 M $227.7 M ($7.8 M) $219.9 M $207.7 M Discretionary Fund $11.2 M $12.7 M ($0.6 M) $12 M $11.5 M Intercommunity $9 M $10.1 M ($1.6 M) $8.5 M $9.2 M Discretionary Fund * FY 19-21 includes 10 quarters of revenue (Two quarters of revenue from FY 2019 and eight for FY 2020-2021) **Oregon House Bill 2377 directed the transfer of $10.1 million from STIF to STF, effective July 1, 2019 The perceived reduction in STIF funding when comparing FY 2019-2021 to FY 2022-2023 is a result of comparing ten quarters of revenue to eight quarters. The table on page 2 summarizes the estimated Formula fund revenues available to each QE based on the date of distribution by fiscal year where the annual increase in revenue can be seen. Estimate Calculation Method • Gross revenue is multiplied by projected tax payer compliance rate, between 91 and 95 percent seasonality adjusted each quarter • Department of Revenue collection and administration costs are deducted from the gross revenue • The result is multiplied by 90% to determine the projected Formula Fund net total • Note that the remaining 10% is dedicated to the Discretionary Fund (5%), Intercommunity Discretionary Fund (4%), and the Technical Resource Center (1%), which also funds ODOT administration of the STIF Program • The projected net total is multiplied by the QE payroll shares resulting in QE revenue estimates • QE payroll shares are calculated using the most current annual payroll data from Oregon Employment Department, with adjustments to ensure each QE receives the minimum annual allocation of $100,000 1 Qualified Entities are defined in statute as a county in which no part of a Mass Transit District or Transportation District exists, a Mass Transit District, a Transportation District or an Indian Tribe. 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BACKGROUND AND POLICY IMPLICATIONS: The Oregon "transit tax" is a state payroll tax equal to one -tenth of 1 percent. The Transit Tax is the sole revenue source for the new Statewide Transportation Improvement Fund (STIF). STIF funds are intended to improve and expand public transportation services. In October, the County received its first STIF disbursement from ODOT in the amount of $3,023,367. This budget adjustment will allow funds to be passed through to Central Oregon Intergovernmental Council (COIC) to begin executing the County's STIF projects as outlined in the County's STIF plan. The state will estimate the total STIF funding amount annually. Actual revenues will vary based on transit tax collections. Current revenue estimates for the state are attached. FISCAL IMPLICATIONS: N/A ATTENDANCE: Whitney Hale, Administration