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6.3 TRANSPORTATION DEFICIENCIES & PROGRAMMED <br />IMPROVEMENTS <br />The identification of transportation deficiencies is one of the main elements of a <br />transportation plan. In total, these deficiencies will shape where and how the County will <br />focus a majority of its financial resources in the coming years. The 20-year timeframe of <br />this planning process extends well beyond the typical five-year horizon used by the County <br />to program infrastructure improvements. A five-year horizon represents a timeframe <br />when available funding can be estimated with reasonable certainty. Beyond five years, the <br />financial resources that will be available to the County are uncertain. <br />Another financial challenge facing the County is the impact of inflation on construction <br />resources. Historically, annual inflation rates for transportation infrastructure projects <br />has outpaced overall inflation indexes. In recent years, consumer inflation has ranged <br />between approximately 1 percent and 2 percent while transportation construction costs <br />typically increase between 3 percent and 4 percent each year. As a result the County's <br />purchasing power for transportation infrastructure projects is decreasing over time. Figure <br />34 illustrates this challenge. <br />Assuming the recent highway program annual budget of approximately $21.5 million <br />increases at 2 percent per year while construction inflation increases at 4 percent per year, <br />the County's real dollars available to address system deficiencies will steadily decrease <br />over the 20 year planning horizon. By the year 2040, the $21.5 million annual program <br />would have approximately two-thirds the purchasing power because of the 4 percent <br />construction cost inflation factor. <br />9' <br />1‘1. <br />Figure 34 - Transp finance Challenges <br />49.0 51.0 COST OF <br />CONSTRUCTION <br />N ARLON S) <br />ItiNM1Al KRUK <br />40.3 <br />387 <br />COUNTY FUNDS <br />laiwoNN <br />ANNIMI INCREASE <br />215 22.4 <br />21521.9 22 <br />018 2019 2020 7021 2022 2023 2024 2025 2026 202.7 2028 2079 2030 2031 2037 2033 7034 7035 2036 2037 2038 2039 2040 <br />urte-Mac Calmly <br />ANOKA COUNTY 2040 TRANSPORTATION PLAN UPDATE CHAPTER 6 - IMPROVEMENT STRATEGIES AND IMPLEMENTATION 113 <br />