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Adjust City of Tehama Minimum Allocation Baselines - Deputy Director Riske-Gomez
recommendation
Requested Action(s)
a) Adopt Resolution No. 05-2026 establishing a minimum annual allocation baseline of $50,000 for the City of Tehama for Regional Surface Transportation Program (RSTP) Exchange funds and Local Transportation Fund (LTF) allocations, subject to annual fund availability and applicable program requirements.
b) Authorize the Executive Director or Deputy Director of Transportation to take all actions necessary to implement the revised allocation baselines, including preparing annual allocation schedules, making administrative or technical adjustments, coordinating with the City of Tehama, and maintaining records for accounting, reporting, and audit purposes.
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Financial Impact:
Approval of this item will increase the City of Tehama’s minimum allocation baseline from $25,000 to $50,000 for applicable Regional Surface Transportation Program Exchange and Local Transportation Fund allocations.
Background Information:
The Tehama County Transportation Commission serves as the Regional Transportation Planning Agency for Tehama County and the incorporated cities of Corning, Red Bluff, and Tehama. As part of its annual funding responsibilities, TCTC allocates regional transportation funds, including RSTP Exchange funds and Local Transportation Funds, to eligible local agencies within the region.
In 2020, the Commission established a minimum allocation baseline of $25,000 for the City of Tehama. The baseline was intended to provide the City with a meaningful and administratively practical level of annual transportation funding, recognizing that formula-based allocations for smaller jurisdictions may otherwise result in amounts too small to effectively deliver transportation improvements.
Since that time, transportation costs have increased substantially due to inflation, construction cost escalation, and increased administrative and project delivery expenses. In addition, available transportation revenues, including revenues related to fuel taxes, have increased since the original baseline was established. As a result, the existing $25,000 baseline no longer provides the same practical funding value or local project delivery capacity that it provided when adopted.
For Fiscal Year 2024-25, the City of Tehama’s RSTP distribution was held at the existing $25,000 minimum baseline, while the regionwide RSTP amount was $720,999. Adjusting the minimum baseline to $50,000 will better reflect current funding conditions and preserve the original intent of providing a meaningful minimum annual allocation to the City of Tehama.
The proposed action establishes a revised minimum annual allocation baseline of $50,000 for the City of Tehama for both RSTP Exchange and LTF allocations, subject to annual fund availability and applicable program requirements. The revised baseline will provide greater predictability for the City of Tehama and support its ability to plan, maintain, and deliver local transportation improvements.
Approval of this item will authorize staff to apply the revised baseline when preparing future annual allocation schedules. The allocation methodology may continue to be reviewed by the Commission and may be amended in the future if revenue conditions, program requirements, or regional priorities change.