City Streets: Investing in a Neglected Asset

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CITY OF ROGUE RIVER Rogue River St. Fund Revenue FY 05-06 ~ ~ $s,5oo'~- ~ i _~_s2s o00 $95 700 Most of the streets are more than 30 years old and in need of repair. The city has secured a $25,000 grant from the Special City Allotment Program biannually for several years. In an effort to raise additional funds for needed street repairs, the city proposed a 3-cent per gallon gas tax in 2006. The two gas stations and citizens reacted negatively; therefore, the city began looking at other options. Rogue River has no funding mechanism for major street maintenance projects. The current cost for a 2" overlay is approximately 95 cents per square [] Interest foot. The street maintenance priority list, based on ', Grants the significance of the street to the community and State Highway Fund Revenue its existing condition, reflects needed repairs at a cost of $925,774 in 2007. This figure is expected to rise 3 percent annually. A delay in maintenance will quadruple the cost -what was a $100,000 project becomes a $400,000 project. The city is considering levying a street impact fee upon all development to be collected at time of building permit issuance. While an impact fee will be insufficient to catch up and keep pace with needed repairs, it will supplement the $103,956 the city expects to receive in 2007 from the state Highway Fund. Meanwhile, the city will continue to explore other possible sources of revenue for pavement maintenance and preservation. Rogue River Critical Street Project List: 1. Pine Street - E. Main St. to Est mated Cost $307 OOOavement is in poor condition and in need of a grind and overlay ~-- 2. Broadway - to Valley View: Condition - Pavement is in poor condition and in need of a grind and overlay. Estimated Cost: $233 300. 3. W. Main Street -Pine St. to W. Evans Creek Rd.: Condition - POOOment is in poor condition and in need of a grind and overlay. Estimated Cost: $140, 4. E. Main Street -Depot St. to N. River Rd.: Condition - Pavement is beyond poor condition and in need of a grind and overlay, .Estimated Cost: $122,000. 5. N. River Road -Classic Dr. to City Limits: Condition -Pavement is in poor condition and in need of a grind and overlay. Estimated Cost: $101,760. City Streets: Case Studies -Page 46 CITY OF SALEM From 2003 to 2009, Salem needed $109 million in order to maintain the street pavements in good or better condition. Five years into this seven year assessment, Salem has only been able to direct $12 million toward addressing these needs. SALEM QUICK FACTS • 2006 Population: 149,305 (An increase of 24 percent in 10 years) • Funding Need: An additional $9.9 million is needed annually to maintain Salem's 1,081 lane miles. $97 million is needed to bring all streets up to "good" condition. • Highways 22, 221, and 99E Business, are located within Salem's city limits. • Local Economy: Government -Oregon State Capital. Education -Willamette University. Food Processing. Mixed-Commercial. In 2003, Salem city staff estimated a need of $109 million over the next seven years (2003-2009) in order to maintain the street pavements in good or better condition. Corrective, rehabilitative, and preservation maintenance projects are included in the needs assessment. Five years into this assessment, Salem has been able to direct only $12 million toward addressing these needs. Salem has sustained amodest in-house maintenance paving program of patches and thin overlays designed to hold its arterial and collector streets together until sufficient funding can be secured to undertake larger, structural overlays. The city has made progress toward improving the worst-condition local residential streets, but lacks resources for a significant number of paving contracts needed for arterial streets. 1 ~ _ -,Cr~": it In the current fiscal year (2006-07) ~' F ~ ~ 1( V~' f .~ ~ r~ ~~ Salem budgeted $9 million for street --- ~ ~--~- ~~.--. _ operations and maintenance, a decrease of 8.2 percent from fiscal year 2005-06. More notably, the current budget contains a 44 percent decrease in pavement maintenance spending, with traffic signal operations, street lights, and other maintenance spending requiring a larger percentage of total resources. .City Streets: Case Studies -Page 47