Presentations

Local Highway Finance: Guidance for the FHWA-536 Form

Highway Information Seminar
  November 16, 2011
  Ralph Erickson

Resources

• Guide to Reporting Highway Statistics
  http://www.fhwa.dot.gov/policyinformation/hss/guide/
  The FHWA-536 is in Chapter 11 of the Guide
• Highway Taxes and Fees
  http://www.fhwa.dot.gov/policyinformation/motorfuel/hwytaxes/2008/

More Resources

• Where to find electronic versions of the forms:
  http://www.fhwa.dot.gov/policyinformation/hss/guide/formlist.cfm
• AASHTO Maintenance Manual:
  http://www.fhwa.dot.gov/policy/ohpi/hss/formlist.htm
• Appendix D in the Guide
  • Local finance simplified methodology

Guide: Chapter 11

• Report Identifying Receipts And Expenditures Of Local Governments
• Data required
  • Biennial report for odd-numbered data years
  • Some States report the FHWA-536
    • Every year
    • Every other year
• Report deadlines (Guide, Chapter 1)
  • Data for odd numbered years (2011, etc.)
  • Due October 1 of the following even-numbered year (October, 2012)
  • FHWA recommends doing the FHWA-536 every year

Overall Considerations

• Fiscal year versus calendar year
  • Your choice, consider:
    • Coordination with other reporting requirements
    • Best data
    • Most timely
• General Fund funding versus dedicated funding
  • Different ways to develop and report
• Cash versus accrual accounting
  • FHWA requests all reports on a cash basis

General Observations

• Highway Finance re-assessment soon underway
• Often, property taxes generate significant local revenues
• Several States administer all roads in the State

Form FHWA-536

• Your data permits the FHWA to develop a series of national tables depicting the financing of highway activities at the local level
  • LGF Series
  • LGB Series
• Ultimately, FHWA summarizes highway funding by all levels of government
• Local funding is a major portion of the total
  • Roughly 35%
• Reporting four basic areas of local highway finance:
  • Section 1: Disposition of highway-user revenues
  • Section 2: Revenue identified by source and type of funds
  • Section 3: Expenditures identified by purpose or activity
  • Section 4: Local highway debt status

Section I: Disposition of Revenues

• Tracks spending of all highway-user revenues that are available to local governments
  • Local
    • Motor fuel taxes
    • Motor vehicle taxes
  • State
  • Federal
• Adjustments
  • Collection expenses
  • Non-highway purposes
  • Mass transit

Section II. Receipts for Road Purposes

• Funds from all sources applied to local highway purposes
• Fund sources include
  • Local highway user fees
  • Local General Fund appropriations
  • Proceeds of bonds and notes
  • Private contributions
  • State government
  • Federal government
• Details on page 2 of Form

Section III. Expenditures for Road Purposes

• Expenditures of funds for local highway purposes
  • Local highway expenditures include:
  • Local highway capital outlays
  • Maintenance, traffic control, snow removal Administration, enforcement, safety
  • Debt service on local obligations
  • Payments to State governments
  • Payments to toll facilities
• Details on page 2 of Form

Section IV. Local Highway Debt Status

• Records local government highway debt:
  • Debt status
  • Change in status
  • Amounts are recorded at par value – the face value
• See Chapter 9 for general description and instructions reporting highway debt information