City Streets: Investing in a Neglected Asset

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- ~. Springfield Street-Related Revenue FY 05-06 $2,93D,DOD $1,452,000 $2,699,DOD ^ Lane County Funding Locally-Raised Revenue ^ State Highway Fund Revenue CITY OF SPRINGFIELD new construction. The SDC enabled Springfield to devote all of the state fuel tax money and Lane County funding to operations, maintenance and preservation. Over time, the county money became a greater source of revenue until the late 1990s when the county decreased its contributions based on declining forest receipts. The decrease drove Springfield's street fund to near insolvency. The city had adequate SDC revenue to support the level of new construction, but inadequate revenue to maintain existing infrastructure or improve the infrastructure needed for areas developed prior to the enactment of transportation SDCs. The near failure of many city streets was averted in 2003 when the Springfield City Council adopted a local fuel tax of $0.03 per gallon. The local fuel tax provided crucial funding to restore the level of maintenance and preservation activity and limit the ongoing deterioration of the existing street system. The situation has changed once again, however. The potential loss of funding through the federal Secure Rural Schools Act of 2000 has resulted in the elimination of Lane County's road assistance to cities. If that were to happen, the result would be a loss of more than one third of Springfield's current street fund revenue. Funding for street improvements is further complicated by an increased desire by the Oregon Transportation Commission (OTC) to have local governments provide funding for improvements on the state and Interstate highway system that occur in their vicinity. OTC has set a goal of moving freight and traffic throughout the state, but when local maintenance resources are diverted to highway expansion projects, local streets suffer. To achieve OTC's full mission, attention must be paid to local streets -once freight moves off the state highway system, these streets are needed to move people and goods to ~ '' i,.w ~^ their final destination. r ~, " ' With its current funding levels, Springfield can continue modest preservation efforts. However, even at a reduced level of support for maintenance, the street fund will again - . ~. , R ,~ ~ ,, ;- f ~ - - ~_ r; ,': ~' - CITY OF SPRINGFIELD reach a perilous state in about three years, especially if county funding is eliminated. At that point, the city must identify alternative local revenue sources, such as an increase to the local fuel tax or the implementation of a transportation maintenance fee. While the city has successfully worked its way through cycles ofresource-rich and resource-poor times, the demand for new transportation facilities has never ceased growing, and has accelerated. If Springfield continues to divert maintenance resources for street improvements, either local fees and taxes will increase or maintenance and preservation will decrease. Springfield's Critical Street Project List: 1. Sidewalks (mostly residential): Condition -Damaged due to street trees. Estimated Cost: $5,000,000. 2. Unimproved City Streets: Condition -Need to be reconstructed to current urban standards. Estimated Cost: $15,000 000. 3. Street on Bus Routes (5 miles): Condition -Bus route streets are damaged due to heavy bus traffic. Need to rebuild them to standards that can handle the weight of bus traffic. Estimated Cost: $10,000 000. 4. Street Sweeping: Condition -The city would like to increase street sweeping to twice a week, which would help preserve the pavement. Estimated Cost: $500 000. 5. Street Lighting: Condition -Need more street lighting as a safety improvement measure. Estimated Cost: $500,000. City Streets: Case Studies -Page 56 City Streets: Case Studies -Page 57