During last night's meeting, the Bakersfield City Council approved bids from contractors to demolish property along the planned path of the extension of Highway 58 to Interstate 5.
A Fresno appeals court ruled on Monday that the city cannot use revenue from a state gas tax to pay for part of a loan for the project because it involves bonds that were not approved by voters.
That ruling could eliminate an estimated $7 million in gas tax revenue for the city, which is about half of the project's annual $14 million future debt service.
However, Bakersfield City Finance Director Nelson Smith says that the court did approve the city's use of the utility surcharge fee and transportation impact fee, to pay off future debt. Together these fees provided roughly $22 million for the city last year, well beyond the $14 million required for the Centennial Corridor Project.