City Streets: Investing in a Neglected Asset

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CITY OF BAKER CITY Baker City Street Fund Revenue FY 05.06 transportation systems development charge. Local improvement districts and residential developments are the only sources of new construction. ~~ Other Revenue j Locally-Raised Revenue . ~ State Highway Fund Revenue In terms of local street fund revenue for maintenance, Baker Ciry does not have any local fees or taxes (such as a gas tax). There have been recent discussions on a staff level about a transportation user fee that would be added to water/sewer utility bills. As little as $2 per month. added to each utility bill (approximately 4,000 accounts) could result in an additional $96,000 for the street maintenance fund (a 23 percent increase). The public has been concerned about additional taxes and fees, so the issue has not moved beyond the staff level. After the annual street inventory, the public works department selects the streets that are the most critical to repair, beginning with streets to consider for an overlay and candidates for a fog seal. Preparation work requires a large portion of the street maintenance budget and reduces funds available for the actual application of an overlay. Unless Baker City implements new revenue sources, the problem will compound from year to year due to a backlog of maintenance projects. Baker City's Critical Street Project List: _ . 1. Resort Street: Condition -Several blocks of this major street in the Historic District are in poor condition and are in need of street reconstruction, new curbs, gutters, and sidewalks. Estimated Cost: $197,000 (overlays only), 2. Btrch Street: Condition - 4 blocks of a connector gravel street need to be paved. Estimated Cost: $350 000. 3. Walnut Street: Condition - A local connector gravel street, needing a complete street construction (including curbs and gutters). Estimated Cost: $250.000. 4. Reservoir Road: Condition - A chip sealed gravel road, needing major patching and overlay. Estimated Cost: $80,000. 5. B Street: Condition -One block of a former dead-end street is now an entrance to a grocery store parking lot. The additional traffic has accelerated the deterioration of an already poor street. The base has failed, and a complete reconstruction is needed. .Estimated Cost:. $117,000. CITY OF CORVALLIS The city estimates a need for $3.5 million to maintain current street services. Measure 50 has led Corvallis to shift 100 percent of property tax out of road funding. Compared to the projected actual for fiscal year 2006-07 of $2.9 million, the difference in these two numbers equals a 6 cents per gallon local gas tax. CORVALLIS QUICK FACTS 2006 Population: 53,900 (an increase of 9 percent in the last 10 years) • Funding Need: An additional $950,000 annually is needed to maintain Corvallis' 387 lane miles of streets ($600,000 to maintain at current service levels, and $350,000 to restore to previous levels). A total cost of $3 million is needed to bring all streets up to "good" condition. Highways 20, 34, and 99 West run through the Corvallis. Local Economy: Mixed Commercial. Higher Education -Oregon State University. Technology -Hewlett-Packard. Corvallis needs an additional $950,000 per year to fully maintain streets, and return service levels to previous standards. In 1993, Corvallis was in a good position to provide adequate street funding -including pavement maintenance at an average rating of 85 out of 100. The city had system development charges (SDCs) to provide extra capacity; development requirements to provide adequate street and sidewalk infrastructure; an updated state gas tax that Corvallis Street Fund Revenue FY 05-06 provided adequate funding for maintenance and operations; and a charter mileage levy dedicated to the street fund that was growing with assessed values. 4 Locally-Raised Revenue ~ State Highwayfund Revenue Since 1993, the highway fund has been reduced by inflation and Measure 50 moved the mileage levy to the general fund. Other priorities (such as fire, police, parks, transit, library and planning) reduced the street funds' share of property tax revenues until they were eliminated in fiscal year 2002-03. As revenue declined, the burden on the street fund increased with 35 percent of the cost of street lighting moving from the general. fund to the street fund. City Streets: Case Studies -Page 18 City Streets: Case Studies -Page 19