HomeMy WebLinkAboutItem 02- Capital Street BondAGENDA ITEM SUMMARY Meeting Date: 4/3/2023
Meeting Type: Work Session
Staff Contact/Dept.: Jeff Paschall/DPW
Ben Gibson/DPW
Staff Phone No: 541-726-1674
541-726-2197
Estimated Time: 30 minutes
SPRINGFIELD Council Goals: Maintain and Improve
CITY COUNCIL Infrastructure and
Facilities
ITEM TITLE: CAPITAL STREET BOND
ACTION
Review the current condition of the City's street assets following completion of the
REQUESTED:
preservation projects completed with funds provided through a voter approval of
the 2018 Street Bond. Consider options for seeking renewal of the five-year street
bond and provide direction to staff.
ISSUE
In 2018, voters approved a $10 million street bond which allowed for the
STATEMENT:
preservation and rehabilitation of 4.7 miles of collector and arterial streets.
However as of the most recent street condition report there were just over 15 miles
of collector and arterial streets classified as fair, and just over 15.5 miles classified
as poor. This equates to an estimated need of $40.5 million for preservation and
$125 million to $187 million for reconstruction.
ATTACHMENTS:
1. Council Briefing Memorandum
DISCUSSION/
With completion of the project list approved and funded through the 2018 street
FINANCIAL
capital bond and all funds expended, the City faces similar budget conditions in
IMPACT:
FY24 as FY18. Revenues the City receives through state transportation
apportionment and local 3 cent/ gallon gas tax cover operations and general
maintenance of the City's transportation system, but do not allow for funding a
capital preservation program to continue to address the backlog of street repairs or
maintain the status quo.
The following data is from the recent street condition report sent to the state:
• Collectors and Arterials in good condition: 25.01 miles
• Collectors and Arterials in fair condition: 15.01 miles
0 Collectors and Arterials in poor condition: 15.56 miles
Headway was made on the identified miles street repair backlog as approximately
4.7 miles of roadway identified as fair in FYI received preservation treatment
through the influx street bond dollars and are now classified as good. Another
street capital bond targeted toward preserving streets identified in fair condition
would keep the miles of streets requiring costly reconstruction from doubling over
the 10 years.
MEMORANDUM City of Springfield
Date: 4/3/2023
To: Nancy Newton, City Manager COUNCIL
From: Jeff Paschall, Community Development Director BRIEFING
Subject: CAPITAL STREET BOND MEMORANDUM
ISSUE: In 2018, voters approved a $10 million street bond which allowed for the preservation
and rehabilitation of 4.7 miles of collector and arterial streets. However as of the most recent
street condition report there were just over 15 miles of collector and arterial streets classified as
fair, and over 15.5 miles classified as poor. This equates to an estimated need of $40.5 million
for preservation and $125 million to $187 million for reconstruction.
COUNCIL GOALS/
MANDATE:
Maintain and Improve Infrastructure and Facilities
BACKGROUND:
Reviewing the information and data from 2018, the City was facing a repair backlog estimated at
$35 - $40 million. While progress was made on increasing the miles of streets in the good
category, the estimated 2023 backlog streets of a similar classification is estimated at $40.5
million when recent inflation numbers are included.
The following data and map are from the recent street condition report sent to the state,
estimated budget impacts are included for reference:
• Collectors and Arterials in good condition (green): 25.01 miles
• Collectors and Arterials in fair condition (yellow): 15.01 miles (Project costs estimated
to $40.5 million in 2023 dollars)
• Collectors and Arterials in poor condition (red): 15.56 miles (Project costs estimated to
$125 -$187 million in 2023 dollars)
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To track and maintain the City's street assets the simple rating system above is utilized to
identify and schedule maintenance and preservation activities. Mill Street is an example of a
Attachment 1, Page 1 of 2
MEMORANDUM 3/30/2023 Page 2
street segment in the poor category. A segment in this category typically requires full
reconstruction of the surface and base rock and has a high-cost impact to the budget. The
segment of Mill Street currently scheduled for reconstruction is just under a mile in length
(approximately 0.94 miles) and the roadway reconstruction portions of the project is estimated to
cost over $8 million. In contrast, by targeting streets in the fair category with the street bond
funds, the equivalent of five Mill Streets were just preserved and repaired for $10 million.
With the success of the initial five-year general obligation bond, the Council may want to
consider another bond to continue funding street preservation work on collectors and arterials.
As information for Council discussion, the table below summarizes how the different variables
of amount and term could impact property taxes. Please note that the increment for measuring
impact is a single-family home with a Real Market Value (RMV) of $250,000 and an Assessed
Value (AV) for taxation purposes of $185,000.
Bond Amount
5 Year
$185,000 AV
10 Year
$185,000 AV
20 Year
$185,000 AV
$15 million
Cost/
Thousand
Annual
Cost
Cost/
Thousand
Annual
Cost
Cost/
Thousand
Annual
Cost
$10 million
$0.477
$88
$0.296
$55
0.184
$34
$15 million
$0.718
$133
$0.445
$82
0.276
$51
$20 million
$0.956
$177
$0.593
$110
0.367
$68
Additionally, the following table estimates the aggregate length of streets that might be
preserved at various bond amounts. Costs used to build the table were based off the 2018 bond
project costs using current inflation information from the last five years.
Bond Amount
Estimated
Street Length
$10 million
3.7 miles
$15 million
5.5 miles
$20 million
17.4 miles
Due to inflation impacts over the last couple of years, a similar $10 million bond as 2018 is
estimated to preserve one mile less of streets.
NEXT STEPS
Should the Council give staff direction to move forward with another general obligation bond
for street preservation and repair, the Council is asked to give guidance on the potential amount
for consideration. In addition, the Council is asked to provide general guidance on project areas
or boundaries. With this information, staff will begin preparing details to build a project list for
future Council discussions.
RECOMMENDED ACTION: Give staff direction on the following questions:
1. Should staff move forward preparing materials for the Council to consider asking
voters to approve another Street Capital Bond?
2. If yes, give direction on potential bond amount for consideration and project
areas.
Attachment 1, Page 2 of 2