County Commission | The Magazine November 2019 | Page 41

PAID ADVERTISEMENT
Local Government Funding: Uses, Restrictions, Financing and Other Funding Opportunities
Funding Uses Allowed
➢ The revenue allocated to counties and municipalities from the Rebuild Alabama Act must be deposited into a separate
fund maintained by the county or municipality and expended only for the following:
o The maintenance, improvement, replacement, and construction of roads and bridges maintained by the county or
municipality.
o As matching funds for federal road or bridge projects.
o The payment of any debt associated with a road or bridge project.
o For a joint road or bridge project with one or more adjoining counties or one or more municipalities pursuant to any
agreement executed under the authority of state law.
o For a joint road or bridge project with one or more counties and municipalities pursuant to any agreement executed
under the authority of state law.
o Any Class 1 through 4 municipality that currently provides or operates public transportation services may utilize an
amount not to exceed 10% of the net tax proceeds received annually to match any available federal or state
transportation funding available for public transportation infrastructure improvements.
Funding Restrictions
➢ The revenue allocated to counties and municipalities from the Rebuild Alabama Act shall NOT be used for the following
purposes:
o Salaries, benefits, or any other form of compensation for county, municipal, or contract employees or for county or
municipal officials except as included as project costs.
o The purchase, lease, or maintenance of equipment, other than equipment purchased and permanently installed as a
part of a road or bridge project.
o The maintenance or construction of public buildings/structures not integral to the road/bridge system.
Financing
➢ A county government may pledge up to 50% of its total revenue received from the Rebuild Alabama Act as security for
the issuance or refinancing of any loan or debt obligation used for transportation infrastructure improvement, preservation
and maintenance.
➢ A municipal government may pledge 100% of its total revenue received from the Rebuild Alabama Act as security for the
issuance or refinancing of any loan or debt obligation used for transportation infrastructure improvement, preservation and
maintenance.
Additional Funding Opportunities
➢ County and State Funding Exchange
o Beginning on October 1, 2019, ALDOT will allocate $400,000 of its state portion of tax revenues to each county in the
state in exchange for the annual federal allocation of $533,000 which was being distributed to each county. Counties
will be able to utilize the state funding more freely than the federal allocation.
o The $400,000 annual allocation to each county shall be utilized first as matching funds for any balance in the county’s
federal allocation not authorized by Sept. 30, 2019. Once this is accomplished, all remaining and future allocations
shall be expended for road and bridge projects on county roads classified as minor collectors or higher and/or for
bridge structures on the National Bridge Inspection inventory.
➢ ATRIP-II Program
o Through the Rebuild Alabama Act, this program will require ALDOT to set aside from $30 to $50 million annually of
the state revenue portion to fund projects of local interest on the state-maintained highway system, which may also
include local roads and bridges essential to the overall project.
o This program will be directed by an 8-member ATRIP-II Committee which will be authorized to develop and adopt the
procedures which will determine how the funds will be used and the projects selected.
➢ ALDOT Annual Grant Program
o ALDOT will create an annual grant program of not less than $10 million for which county governments and city
governments can apply and is charged with creating a process for cities and counties to submit applications.
o Cities and counties will also be able to leverage local proceeds to partner with the State on larger projects for which
the respective city or county might not have adequate funding.
o First round of grant applications is due by Nov. 30, 2019, and grants will be awarded by Jan. 15, 2020.
The information contained herein is a summary of certain provisions of the Rebuild Alabama Act and is not meant to be comprehensive or conclusive. Estimated
revenues cited herein are reproduced from publicly available information and are general estimates only.