City Streets: Investing in a Neglected Asset

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CITY OF MILWAUKIE Milwaukie Street Fund Revenue FY 05-06 ~~ '° sse ago ~4~58 000 I $991 000 `. ^ Grants Locally-Rasied Revenue j_ 1 State Highway Fund Revenue The city estimates that it will take $1.2 million per year for 10 years to catch up on deferred maintenance and rehabilitation projects needed to bring all streets up to a "good" condition. The state highway fund is Milwaukie's primary revenue source for flexible transportation funding. In current, non-adjusted dollars, the city's state gas tax share has barely increased over the last decade: $906,065 in 1995-96; $959,646 in 2006-07. Multiple street needs compete for scarce maintenance dollars within the city's street fund, including: preventive surface maintenance; right- of way maintenance; street light electricity; and emergency street repairs. Milwaukie's Street Surface Maintenance Program calls for the development of new, local revenue sources. The new funding sources adopted by the council are atrip-based street maintenance fee and a 1.5 percent privilege tax on Portland General Electric. These two revenue sources will bring in $900,000 to $1,000,000 annually. A 2-cent local gas tax was originally in the revenue formula, but the City Council is waiting to see if a raise in the state gas tax occurs during the 2007 legislative session. If passed, the local gas tax would generate an additional $125,000 to $200,000, and would allow the city to fully implement the street maintenance program that the community has worked together to create. Milwaukie's Critical Street Project List: 1. Oak Street -Hwy 224 to Monroe St.: Condition -Collector street in need of an overlay (PCI 55). Estimated Cost: $85,802. 2. Washington Street -McLoughlin Blvd. to Oak St.: Condition -Heavy traffic collector street in need of an overlay (PCI 69). Estimated Cost: $181,098. 3. Linwood Avenue -Railroad Ave. to Monroe St.: Condition -Heavy traffic arterial street in need of an overlay (PCI 79). Estimated Cost: $295,593. 4. King Road - 43`d Ave. to Hollywood Ave.: Condition -Arterial in need of reconstruction (PCI 40). Estimated Cost: $770,816, 5. Harrison Street -McLoughlin Blvd. to 42"d Ave.: Condition -Arterial in need of reconstruction (PCI 44). Estimated Cost: $761,252. Note: Pavement condition ratings (PCI) based on combined scores of a 1995 sub-surface test, a 2003-04 visual survey, and a 2005 staff update. City Streets: Case Studies -Page 38 CITY Of N EWBERG Facing significant growth, declining road maintenance resources, and an existing funding gap of X6.3 million, it will take Newberg 25 years to raise the funds needed today for pavement overlays and reconstruction. By that time, the condition of many other roads will have worsened, and additional resources will be needed. NEWBERG QUICK FACTS • 2006 Population: 20,570 (an increase of 27 percent in 10 years) • Funding Need: An additional $520,000 annually is needed to maintain Newberg's 112 lane miles. A total cost of $3.9 million is needed to bring all streets up to "good" condition. • Highway 99 West runs through the middle of Newberg. • Local Economy: Higher Education -George Fox University (560 employees). Manufacturing - A-DEC (978 employees -largest manufacturer of dental equipment). Mixed- Commercial. The city of Newberg's revenues are declining for all city services, including those for pavement preservation. Since 2000, the total number of public works maintenance employees has dropped while the road system has increased an average of two lane miles per year, five lane miles last year alone. Newberg's growth is projected to continue at a healthy rate, with a 1,300-lot development currently underway and urban growth boundary expansions ongoing. The combination of rapid growth and declining revenues has created a difficult challenge for Newberg's pavement preservation efforts. In the last year, Newberg completed a basic condition assessment of the road network. The results were not encouraging. Of the 112 lane miles, 40 are in need of an overlay at an estimated cost of $2.4 million. The city's current budget allocates $150,000 per year to street maintenance. Since Newberg cannot provide an adequate level of pavement maintenance, seven. lane- miles ofroadway now must be reconstructed at an estimated cost of $1.3 million. At this rate, the city cannot keep up with proper maintenance and preservation. It will take 25 1 -; ~ ~ ~ ~ - -~,~ ~ ~~`~ ~ ~~ _ ~ ~~ ,f-- ~,._ ; ~ ~~~ ~ ~ ~ ~ ~ t. r ~ City Streets: Case Studies -Page 39