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MEMORANDUM <br />TO: CITY COUNCIL <br />FROM: ADAM T. EDWARDS, PE <br />SUBJECT: STREET FUNDING <br />DATE: JULY 25, 2016 <br />References: <br />City of Orono Pavement Management Plan, adopted October 27, 2014. <br />City of Orono 2016 Capital Investment Plan (CIP) <br />City of Orono 2016 Budget <br />1. Issue. The City's street rebuilding and maintenance requirements exceed current resourcing. <br />2. Background. For some time the City of Orono has struggled as to how to come up with annual funds <br />to maintain its road/street infrastructure. The 2016 Budget does include $88,800 for pavement <br />maintenance which is sufficient for potholing, signs and winter maintenance. However The Pavement <br />Management Fund (PMF) has $183,000 dedicated funding from the levy for preventative maintenance <br />and reconstruction which is significantly below the amount required to properly maintain the city's <br />streets. In the past, the City has funded street reconstruction projects through the sale of bonds and has <br />applied general fund surpluses towards street maintenance projects. This has resulted in the <br />disproportionally large number of streets in disrepair requiring reactive maintenance and the inability for <br />the Staff to plan for and execute a proactive maintenance plan to protect and extend the life of these <br />valuable assets. <br />a. Pavement Planning. In October 2014 the City adopted a Pavement Management Plan (PMP) <br />which does provide prioritization of road maintenance as well as a description of funding sources. The <br />PMP is used to inform the City's Capital Improvement Plan (CIP) which does provide specific priorities <br />specific roads to receive maintenance or reconstruction out to 5 years and identifies a funding requirement <br />in general categories out to 20 years. Ideally the CIP would then inform the annual budget cycle. <br />b. Staffing and Action to Date. <br />Fall of <br />The City Council directed Staff to develop options for funding annual street <br />2013 <br />reconstruction and maintenance. Staff conducted a study to include querying surrounding <br />communities about how they provide funding for annual street maintenance and <br />reconstruction. <br />March <br />Staff presented funding options to the City Council. Council requested staff to analyze <br />2014 <br />funding options against several scenarios. <br />May 2014 <br />Scenarios (Assessments, Franchise fees, Bonding, Levy Increases) were presented. The <br />Council directed Staff to bring back more information on franchise fees and to present an <br />option for road maintenance in the 2015 General Fund Budget. <br />August <br />Council directed staff to add $30K to the roads maintenance budget for 2015 <br />2014 <br />October <br />Council adopted the Pavement Management Plan (PMP) <br />2014 <br />April <br />Council reviewed the funding options for road maintenance/reconstruction with the <br />2015 <br />consensus being against Assessments or Franchise Fees. <br />Orono Budget - 2017 Attachment C <br />