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Staff: Albany needs roughly $12.8 million more annually to maintain streets; council to consider fee, local gas tax and bond
Summary
City transportation staff presented a long‑range pavement funding analysis showing a $12.8 million annual funding gap to maintain streets at a PCI of 60, and outlined three options — a street maintenance fee, a local gas tax and a general obligation bond — plus an outreach timeline and consultant work.
At a Feb. 24 work session, Albany transportation staff presented a pavement‑management briefing that found a $12.8 million annual shortfall to maintain city streets at a targeted pavement condition index (PCI) of 60 over a 40‑year planning horizon.
Transportation Program Manager Stacy Belcastro told the council the city is responsible for about 190 miles of streets and that current annual capital spending averages roughly $3.0 million (with approximately $3.6 million in annual revenue shown in the street capital fund table). Belcastro said construction costs have grown substantially — she cited an 88% rise in construction costs since 2017 — and that the most cost‑effective strategy is “to keep the good roads good” by doing earlier, lower‑cost treatments rather than waiting for failures that require expensive reconstruction.
Staff summarized three revenue options council asked staff to explore: (1) a city street maintenance fee — an ongoing charge placed on utility or property billing that does not require voter approval (council adopted an ordinance last September creating municipal code authority to set a fee, but no fee amount has been set); (2) a local gas tax — voter‑approved in Oregon communities and estimated by staff at about $400,000 of revenue per penny of tax in Albany, but vulnerable to long‑term declines in fuel sales; and (3) a general obligation bond for one‑time, large capital projects that requires voter approval.
Belcastro said a local gas tax and a street fee were the near‑term priorities for additional study and outreach. Staff has contracted with polling firm Concert to conduct two in‑person focus groups in March and a telephone survey of likely voters; the city has also contracted with Gallardi Rostein to develop fee‑structure options, validate customer classes and perform field QA/QC on commercial and industrial parcels. Draft public outreach milestones include council updates April 7 and May 28, possible ballot language in July if council directs a November gas‑tax measure, and further deliberations on a street maintenance fee in late 2025 or early 2026 depending on complexity.
Councilors asked for additional breakdowns of PCI data, expressed concern about sample sizes in planned focus groups, and urged robust outreach. Councilor Montague said multiple funding sources will likely be necessary: “I think we're gonna have to have all 3 in my opinion.” Belcastro emphasized the work is iterative and will return to council for direction at multiple checkpoints.
