City Streets: Investing in a Neglected Asset

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CITY OF NEWBERG Federal Exchange ~ State Highway Fund Revenue years to raise money for today's needs. By that time, the condition of many other roads will have worsened, and additional resources will be needed. Considering the reality of the declining purchasing power of state gas tax revenues, it is easy to see that Newberg is headed for disaster. To address the budget short fall, the city is investigating the feasibility of alternative funding sources. Options include a local gas tax, general obligation bonds and the most likely approach: a street utility fee. Even with additional funding, it is unlikely that all of the street deficiencies will be addressed by local solutions alone. Newberg expects the struggle for street maintenance funding to be a constant battle until a stable funding source is secured. Newberg's Critical Street Project List: 1. Downtown Core (2,500 linear ft.): Condition -Several severely degraded streets are at risk of structure failure and in need of a complete reconstruction. Estimated Cost: $175,000. 2. Villa Road (5,000 li ~ aSectio sooath snst eet need lol~erlays,l and othe~sectfonsrneed varies from poor to fade complete reconstruction. Estima_ $210.000. 3. Elliot Road (1,000he street's failing lalnd Howl requales a comp ete reconstdru tion.trance to the High School. T Estimated Cost: $70,000. 4. Deborah Road (1,500 linear ft.): Condition -This local street is the main access to an Elementary School, and is an access road to the middle and high schools. The street is in fair to poor condition and is in need of an overlay in order to preserve the pavement. Estimated Cost: $35,000. 5. Meridian Street (1,500 linear ft.): Condition -This minor collector street serves George Fox University and local residents. The street is currently in poor condition and is in need of an overlay in order to preserve the pavement. Estimated Cost: $35,000. City Streets: Case Studies -Page 40 CITY OF NORTH PLAINS The city's $1 per month transportation utility fee generates $22, 000 per year. This does not go a long way given the rising cost of construction. The city must save these fee revenues for several years in order to fund any major street maintenance project. NORTH PLAINS QUICK FACTS • 2006 Population: 1,755 (an increase of 19 percent in 10 years) Funding Need: An additional $100,000 annually is needed to maintain North Plains' 28 lane miles. A total cost of $4 - 5 million is needed fo bring all streets up to "good" condition. • Local Economy: Wood Products -Oregon-Canadian Forest Products (150 Employees); Jewett-Cameron (50 employees). Small Businesses. Currently, the city of North Plains is not able to adequately fund street maintenance and preservation. The city has completed one slurry seal in eight years, and that was on a small portion of streets. Due to declining revenues in the general fund, which pays for police services and city administration, the street fund is the only local resource for street maintenance. Although some revenue is available for routine maintenance and preservation, the city must handle emergency repairs first. North Plains St. Fund Revenue FY 05-06 L Washington County Funding Locally-Raised Revenue State Highway Fund Revenue The street fund consists of the city's share of both the state highway fund and county gas tax revenue, and local "major streets transportation improvement program" (MST1P) funds, traffic impact fees, and transportation utility fee (TUF) revenue. The TUF was adopted in 2004, and again in 2006, as a local revenue tool for funding street maintenance and preservation. It adds about $1 to monthly residential water bills, generating approximately $22,000 per year. Although the low fee of $1 per month made the TUF viable for North Plains, $22,000 does not go very far, especially .City Streets: Case Studies -Page 41