City Streets: Investing in a Neglected Asset

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CITY OF ASHLAND Ashland Street Fund Revenue FY 05.06 [~ Other Revenue Locally-Raised Revenue State Highway Fund Revenue (modernization); new sidewalks for better continuity; new bikepaths for alternative transportation modes; improvements to railroad tracks to meet safety needs; and support for the Rogue Valley Transit District bus services. Seventeen percent of street fund revenue is spent on the storm drain program. The current street condition index indicates Ashland needs $5.3 million in pavement projects (estimated in 2005 dollars), including maintenance, repairs and full depth overlays. In 2005-06, Ashland's street fund only collected $3.6 million dollars. Unless street projects are funded over the next five to10 years, estimated costs will increase as the pavement condition deteriorates. Ashland spends over $600,000 on routine maintenance each year- half is spent on labor for the nine person street crew, and includes painting, patching, slurry seals, etc. Contracted services provide major maintenance and cost an additional $300,000 per year. Current revenue for the street fund includes: state highway funds; franchise fees; systems development charges; city transportation utility fee; local improvement district fees for specific projects; and some state and federal transportation program grant funds for applicable projects. Despite raising $2.2 million (61 percent of street fund revenues locally, Ashland still faces an annual maintenance deficit of at least $1 million. The required expenditures to adequately maintain the street network system far outweigh typical cityxevenues. This has created a significant backlog in maintenance projects. Standard funding sources have been adequately accounted for, and are completely obligated. New sources of funding (long- and short-term) must be identified. During a March 9, 2006, study session, the Ashland City Council recommended the creation of a "Street Financing Task Force" (SFTF) to further evaluate and understand street conditions and. resurfacing needs, and to develop measures for cost-effective management of the street system. A group of 11 members (consisting of council liaison; business owners; chamber representative; university business member; members of the bike/pedestrian and budget committees; planning commission; citizens and staff members) will form the SFTF in early 2007. :?..~ Street infrastructure deficiencies have hindered economic development efforts. For seven years, Ashland has tried to develop 60 acres of industrial land, formerly the sight of the Croman Mill, but has not had the funds for needed infrastructure improvements. With rising costs for labor and materials, the cost for street and sidewalk improvements is now $750,000. Economic development projects such as this one may continue to be hindered unless Ashland is able to secure additional funding for its street system. Ashland's Critical Street Project List: 1. Mountain Avenue; Granite Street; Allison Street; Hersey Street; B Street: Condition - Theinfrastructure for these streets needs to be fully rebuilt. Estimated Cost: $1,950,000. 2. Oak Street: Condition - Sections of the street need reconstruction and overlays. Estimated Cost: $300,000. 3. Bike Path Improvements: Condition - As part of a transportation enhancement effort, city bike paths need improvements. Estimated Cost: $2,300,000. 4. Downtown Plan Phase II and Nevada Street Extension: Condition - In need of various modernization projects. Estimated Cost: $4.8 million. 5. Railroad Crossings at Main Street and Oak Street: Condition - In need of full safety improvements, including bike and pedestrian paths. Estimated Cost: $1,450,000. City Streets: Case Studies -Page 14 % City Streets: Case Studies -Page 15 CITY OF ASHLAND