Operating and CIP Budget Fiscal Year 2015-16

Street Maintenance

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COUNCIL GOALS

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The Street Maintenance Division will implement policies and activities that are aligned with the priorities, goals and strategies the City Council has set for 2015:

Stimulate Economic Development

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o Street maintenance activities support economic development by renewing infrastructure and eliminating sub- standard conditions that would hinder private investment

Enhancing Public Safety

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o Street maintenance activities provide for maintaining safe conditions for motorists, bicyclists and pedestrians utilizing the City’s roadways and sidewalks

FINANCIAL COMMENTS

Funding for Street Maintenance comes primarily from the City’s share of state gas taxes and transfers from the sewer and water enterprises reflecting their responsibility for wear and tear on the streets. Since gas taxes are collected based on gallons and not on the price of gas the amount of gas tax revenue received by the City has remained more or less flat while the cost of street maintenance has increased over time due to inflation. With funds for Streets maintenance currently insufficient to maintain existing infrastructure in good repair, the City’s streets infrastructure is on a path toward continued deterioration. To address this critical issue, a “Safe and Sustain- able Streets” analysis was completed in FY12-13. This study has determined that an increase in the annual budget allo- cation of approximately $420,000 in this budget activity (Street Maintenance) and an additional approximately $2 mil- lion in street pavement investments annually (Street CIP Projects) will put the City’s streets on a safe and sustainable path. This analysis was updated in October of 2014 and this activity is now only underfunded by $170,000. The de- crease is due to investments made by the Council in funding tree trimming, safety street painting, parking lot sealing, and capital projects repairing City sidewalks. The biennial street condition analysis completed in March 2014 indicated that the City’s weighted average pavement condition index (PCI) is 70. Given the City’s current planned expenditures in the Pavement Rehabilitation Program budget in the CIP, the PCI will fall below 65 in 2019 and deferred maintenance will exceed $28 million. In order to main- tain a PCI of 70, it will be necessary to increase the City’s annual capital expenditures to $3 million. While this level of investment would stabilize the PCI over the next 5 years, it would still result in an increase in deferred maintenance to $21 million by 2019. Annual expenditures of over $4.5 million annually would be required to begin to address the City’s deferred maintenance backlog and would also result in a projected increase in the City’s PCI to 75 by 2018.

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