FUNDING
SOURCES
Adequate funding is
the key to a successful capital improvements plan. The BCEO obtains
revenue from three different levels --- Federal,
State, and Local. There are
two primary sources of local money --- gasoline taxes and license
plate fees. (See "Where
The Money Comes From" for an explanation of how these
monies are distributed by the State.) This money is designated
specifically for the County Engineer's Office for road and bridge
projects and is completely separate from the County's general
fund. Annual income generated by these local funding sources
averages just under $9 million. This revenue is important as
local match money for State and Federally funded projects.
The Butler County Engineer's
Office maximizes the use of local funds by matching them with
State and Federal funds. On the average, one local dollar can
leverage three to four dollars from sources outside Butler County.
Federal
Funding
The BCEO works to leverage
outside funding whenever possible for eligible projects. As an
example, there are several categories of Federal aid, most of
which are designated for certain types of projects on specific
roads and bridges. In order to utilize these funds very strict
qualifications must be met, including the completion of environmental
studies and providing the local funding match. An average leveraged
ratio of 80 percent federal to 20 percent local is maintained
by federal aid experts at the BCEO.
State
Funding
Two primary sources
of State funding utilized by the BCEO are the State Issue 2 Program
(SI2P), renewed by Ohio voters in November 1995, and Community
Development Block Grant Funds. The Ohio Public Works Commission
(OPWC) administers the State Issue 2 Program, which also includes
the Local Transportation Improvement Program and the Small Government
Capital Improvements Program. As with Federal funds, a local
match is required for the use of Issue 2 funds and the amount
must be a minimum of 10 percent of the total project cost. State
Issue 2 money is designated for the repair and replacement of
existing infrastructure. The OPWC has divided the State into
19 separate funding districts, and communities and public agencies
within each district must vie for their share of the funding
which is allotted to their district. Butler County lies within
District 10, which also includes the Counties of Warren, Clermont,
and Clinton and their communities. The Butler County Engineer's
Office serves as the manager and OPWC liaison for all Issue 2
funding in District 10.
The Community Development
Block Grant Program is designed to provide money for small city,
village, and township infrastructure programs that normally would
not qualify for other outside funding sources. This program is
also designed to assist with improvements to low-income areas.
Local
Funding
The two primary sources
of local funding are gasoline taxes and license plate fees. Many
road and bridge projects are funded one-hundred percent with
local money and are let by contract or are performed by crews
from the Engineer's Office. Non-contract projects performed by
BCEO crews are known as Force Account projects and can consist
of everything from culvert and bridge replacements and deck repairs
to general and seasonal maintenance. The Ohio Revised Code caps
Force Account projects at $10,000 per mile for paving or maintenance
and $40,000 per structure (bridge or culvert). (Materials for
Force Account projects are bid through separate contracts.) If
the cost estimate for a project is over these amounts, the project
must by law be competitively bid and let as a contract to the
lowest qualified bidder.
A new concept in locally
funded road construction is the Transportation Improvement District
(TID), which was enacted through state legislation passed in
1993.The TID is comprised of a panel of local governments charged
with funding several projects in the TID-designated area, which
covers most of the southeast quadrant of the County. Innovative
financing is the key to speeding up construction of much-needed
projects for which traditional funding methods have been difficult
since most local, state, and federal budgets are already stretched.
The County Engineer serves on the TID Board of Directors.
