Agenda - Council Work Session - 01/24/2012

Home

Revised — January 16, 2011 Ramsey Long -Term Road Maintenance and Reconstruction Program Frequently Asked Questions Why does Ramsey need a long -term road maintenance and reconstruction program? Nearly half of Ramsey's 178 miles of roads were constructed during the city's population boom in the 1970s- 1980s. Even with routine maintenance by Ramsey Public Works, the maximum life of these roads is 40 years. That means that between now and 2025, about $90 million or more in road reconstruction will be necessary to repair or replace city streets. Currently, no budget exists for funding this wave of reconstruction, which will largely be the responsibility of local taxpayers. We realize that this is a staggering amount and that it is not realistic to think that all these roads will all be reconstructed within this timeframe, however, it does demonstrate the demand. What will occur if we do not develop a long -term road maintenance program? While the city's existing maintenance program is stretching the life of local roads, no roads can be built to last indefinitely. Without action, Ramsey's roads will be prone to more potholes, cracks and crumbling pavement — creating serious safety risks for pedestrians and motorists. Poor roads may affect property values and may hinder Ramsey's ability to attract new residents, businesses and jobs. Ultimately, reconstruction will be necessary and the city will need to utilize its current assessment program, which assesses the total cost of projects to property owners in the affected areas. This would place a significant short -term burden on property owners a challenging option in the current economy. What are the city's goals for a long -term maintenance and reconstruction program? The city's goals are to: • Ensure safety for pedestrians and drivers • Reduce project delays and avoid higher costs to taxpayers • Spread out the cost of road maintenance and reconstruction, and keep assessments low • Maintain high - quality roads that will continue to attract new residents, businesses and jobs How will a long -term approach benefit me? Maintaining /rebuilding city streets is critical for ensuring safety and accessibility for residents, businesses and organizations in Ramsey. Crumbling roads can be dangerous for pedestrians and drivers. Businesses, schools and other organizations need roads that sufficiently handle customer and visitor demands. Well- maintained streets also keep our neighborhoods and business districts attractive, which helps protect property values and attract new residents, businesses and jobs. A long -term program also will help spread out the cost of street maintenance. Where will the funding for a long -term program come from? The level of work required to repair and reconstruct city streets is beyond the routine maintenance provided for in the city's budget. As a result, the additional cost of reconstruction will largely be the responsibility of city taxpayers. The city is considering the following three options to cover project costs: 1. Do Nothing: Use the city's current assessment policy (100% for reconstructions) of charging affected property owners based on the lineal footage of their property for the total project cost. 2. Citywide Property Tax Increase: Proportionally charge all city taxpayers based on their property values for the total cost of the long -term street maintenance and reconstruction program. 3. Citywide Franchise Fee: All utility customers pay an equal fee that covers the total cost of the program. How would Option 1 (the current assessment policy) work? An assessment would be charged to affected property owners based on the lineal footage of their property. For example, a quarter-acre lot may be assessed a total of $9,000 or about $75 /month for 10 years. The assessment Page 1 of 3