Goldsboro council hears pavement-preservation plan, financing options to close $3.2M annual gap

City staff on Monday presented a pavement-preservation program that would use $1.2 million in Powell Bill funds this fiscal year to begin targeted treatments such as crack sealing, microsurfacing and limited reconstruction, and outlined options to close an estimated $3.2 million annual funding gap for street maintenance.

The presentation by Jonathan (public works staff) described the treatments proposed for this initial round and explained the goal: “pavement preservation isn’t just about fixing the bad streets. It’s also about extending the life of the better-rated streets,” he said. Staff proposed concentrating work on longer contiguous runs of streets to reduce mobilization costs and improve value for money.

Why it matters: The city’s pavement condition rating has declined in recent years, and consultants told the council the system needs roughly $3.2 million a year to maintain current conditions. With only $1.2 million currently earmarked from Powell Bill funds, the council must decide whether to increase annual pay-as-you-go funding or use financing tools to accelerate repairs.

Consultant Mitch (Davenport Associates) presented two broad scenarios for addressing the $20 million shortfall in a 10-year program: (1) pay-as-you-go (raising an extra ~$2 million per year), or (2) a structured financing approach that preserves annual Powell Bill funding and borrows cyclical $4 million amounts every two years (a model that spreads costs and front-loads work but increases total interest costs). Mitch noted the financing example assumed a 5% interest rate and would add about $5.5 million in interest over the borrowing period.

Mitch described likely financing vehicles and procedural steps if the council chooses to issue debt: general-obligation bonds (which would require a citywide voter referendum and would add new required disclosures to ballot questions), installment financing or limited-obligation instruments, and grant opportunities where available. He said GO bonds generally provide the lowest interest cost but require a referendum and that the Local Government Commission will review any financing plan.

Council members pressed staff on the budget arithmetic. Multiple councilors said they had understood the approved FY26 budget to include additional dedicated street funding beyond the $1.2 million; staff and the finance director (Catherine) clarified that the $1.2 million is the Powell Bill amount committed to street capital work this year and that other Powell Bill dollars continue to fund street operations. The manager said staff will return with a clear reconciliation of budgeted sources and next steps.

Council reaction and next steps: Council members generally supported starting the preservation program but asked for follow-up details before committing additional funds. City staff said they would prepare specifications and solicit bids for the first package and asked council to adopt the presented program by resolution at the Oct. 6 meeting to allow design and bidding to commence. Jonathan recommended beginning construction in April to avoid colder months.

What’s next: Staff will return Oct. 6 with a resolution formalizing the pavement-preservation program and with clarified budget figures that reconcile Powell Bill funds, vehicle-license revenues, and any other dedicated sources. The council will also receive more detail on financing tradeoffs if it chooses to pursue bonds or installment financing.