AGENDA #4a

BUDGET WORKING PAPER

TO:                  W. Calvin Horton, Town Manager

FROM:            Bruce A. Heflin, Public Works Director

SUBJECT:       Use of Sidewalk Funds for Curb and Gutter Construction

DATE:             March 6, 2002

This report is in response to questions raised at the budget work session on February 13, 2002, concerning how charges are made for sidewalks and related work.

DISCUSSION

The Town has used capital funds for sidewalk construction, which has included installation of curb and/or gutters, other drainage improvements and safety features such as railings, for as long as records are available.  When a sidewalk project requires curb and/or gutter work, whether construction is by Town crews or by contract, the same funding source is used for the total project costs.  This funding source typically is the Capital Improvements Fund (CIP).  In recent years, bond funds have been available for sidewalk construction. 

Whether CIP or bond funding is involved, we typically would not charge the various elements of the project to separate funding sources.  This is true for related costs such as drainage improvements, street repairs associated with the sidewalk installation, backfilling and landscape repairs and safety railings.  In most cases, such costs are directly related and necessary to build certain sidewalks so that they are safe for pedestrians.  We have considered other costs necessary to restore the appearance of the project area or to repair property affected by the construction.

In all cases, there are no other sources of funds available for the various cost elements.  The capital project accounts are allocated to each project by way of discreet project budgets, which are calculated to include the related cost elements.  There are no capital funds specifically appropriated for curb and gutter costs associated with sidewalk construction, or drainage improvements or pavement repairs, etc.  Our operating budget does not include funding for capital improvements.  Funds could be allocated for the various cost elements, but they would have to be taken from other capital accounts, or additional funds would have to be provided.

The 1996 bond funds included funding for curb and gutter repairs.  Our original request for those funds was predicated on the need to replace many miles of deteriorating existing curbs and gutters.  The funds have been used in conjunction with new sidewalk construction, to replace deteriorated existing curb and gutter (e. g., Ransom Street). 

One other category of related funding has been past CIP funding for the installation of sidewalk ramps to provide handicapped accessibility in accordance with regulations associated with the Americans with Disabilities Act.  None of these funds have been used for sidewalk construction.

We are not aware of any laws, regulations or guidelines governing the accounting for use of funds for installation of sidewalks and related work.  We recently contacted Raleigh, Cary, Durham, Carrboro, Burlington and Greensboro to discuss their practices.  We consistently found that they use exact or similar accounting practices.  These jurisdictions all typically fund sidewalk installation and related project work from funds designated for sidewalk capital improvements.