Future use of Moraga's Measure K Funds

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Published May 11th, 2022

Future use of Moraga's Measure K Funds

By Vera Kochan

Another Moraga street undergoes Measure K improvements Photo provided

Measure K appeared on Moraga's ballot in November 2012 and won with 70.5% of the vote. It is a 1% local sales tax that became effective on April 1, 2013, and was approved for general use purposes with a sunset duration of 20 years. Revenue collected from the tax is meant to be used for the town's most crucial infrastructural needs. First on the list, and the reason for its passing, is to repair Moraga's failing roadways. Additional needs are storm drains and related infrastructure. At this point, the funds have strictly been used for road repair.

In 2012, the town's Pavement Condition Index rating was 49 (poor). Thanks to Measure K funding the summertime street repairs had elevated the PCI to 70 (satisfactory) in 2016. In April 2020, town staff initiated a new pavement management strategy called "Worst First" in order to fix Very Poor and Poor streets as soon as possible. This game plan has elevated Moraga's PCI to 75 thanks to grant funding.

On May 12, 2021 staff recommended that the town council use Measure K Funds for storm drain projects with the reasoning that its General Fund revenue and uses weren't restricted. Typically, the sales tax generates approximately $1 million annually, but with the rise in internet sales taxes the Measure K Fiscal Year 2021-22 looks to generate over $2.226 million. Additionally, the Road Maintenance & Rehabilitation Gas Tax (generating $331,068) and Garbage Vehicle Impact Fees (generating $814,000) added to the Measure K Funds totals approximately $3,371,068.

Town Manager Cynthia Battenberg's April 27 staff report recommends that future use of Measure K Funds become part of the annual budget process once the 2022-23 Pavement Reconstruction project is completed. "There are no restrictions on the use of Measure K Funds and the council could at any time allocate the funds for uses other than the pavement management program without rescinding or adopting any previous written policies; for the next three years Measure K Funds are needed for the 2022-23 Pavement Reconstruction Project to repair as many Poor and Very Poor streets as possible; over $3 million in American Rescue Plan Act (ARPA) funds are available to fund public storm drain system infrastructure projects; and the town has been successful in identifying other funds for the asset replacement program in recent years and the use of ARPA funds to backfill General Fund revenue loss, as well as annual surpluses, should provide sufficient funding of the town's asset replacement program for the next year or two."

With the Local Sales Tax Oversight Committee monitoring the spending and continually assigning a clean bill of health with regards to Measure K Funds, the town council agreed that staff should stay the course.



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