(a) reconstruction, replacement, reconditioning, restoration, rehabilitation, and preservation of state, county, town, city and village roads, highways, parkways, and bridges to restore such facilities to their intended functions; and

(b) construction, reconstruction, enhancement and improvement of state, county, town, city and village roads, highways, parkways and bridges to address current and projected capacity problems. The amount of state funds historically appropriated statewide for transportation capital purposes from other sources shall not be reduced because of the availability of program moneys. Prior to the allocation of program funds for a county, town, city or village capital project, the municipality responsible for the project shall certify to the commissioner of transportation that the amount of funds appropriated for transportation capital purposes by that municipality shall not be reduced because of the availability of such program funds. 4. It is the intention of the governor, the temporary president of the senate and the speaker of the assembly to enter into a memorandum of understanding with respect to the selection of capital projects and the allocation of program moneys among capital projects. The minority leaders of the senate and assembly may also enter into the memorandum of understanding. 5. (a) Funding of municipal projects will be made upon the application for funding of prior expenditures in a format prescribed by the commissioner. Such funding of state projects may be pursuant to agreements between the commissioner and the New York state thruway authority and may be from the proceeds of bonds, notes or other obligations issued pursuant to section three hundred eighty-five of the public authorities law.

(b) Funding of municipal project expenditures for an approved project shall require the certification of the sponsoring municipality to the department that:

(i) the amount of municipal funds appropriated for transportation capital projects by municipalities shall not be reduced because of the availability of these funds, and each recipient municipality shall certify annually that its own level of funding of transportation capital projects, excluding funds expended for those capital projects funded pursuant to this section, was not diminished;

(ii) program funds will be used solely to fund actual expenditures for the construction, reconstruction, replacement, reconditioning, restoration, rehabilitation, preservation, enhancement and improvement of state and local roads, highways, parkways and bridges, including but not limited to right-of-way acquisition, preliminary engineering, and construction supervision and inspection;

(iii) the project constructed with program funds has a service life of ten or more years;

(iv) the amount of funds requested is no greater than prior unreimbursed municipal project expenditures for work completed or materials incorporated in qualifying projects; and

(v) program funds are not to be used for the mandated non-federal share of federally funded projects.

(c) By written agreement between them, a county may act for one or more cities, towns or villages in the implementation of projects eligible for funding pursuant to this section. A copy of such agreement shall be filed with the commissioner in connection with the program plan that includes such a project.