Fort Worth staff present 'a la carte' street‑maintenance packages as revenues tighten

Fort Worth transportation officials on Tuesday presented an "a la carte" set of optional funding packages designed to slow deterioration of the city’s street network and reduce future reconstruction costs as the city prepares a tighter FY26 budget.

City staff said the city’s pavement‑condition analysis shows an average annual maintenance need of about $98,000,000 and, after counting existing PAYGo (pay‑as‑you‑go) funds, a recurring funding gap of about $66,100,000. Staff said the city allocated $10,400,000 toward street maintenance in FY25, leaving roughly $55,700,000 remaining. The FY26 proposal offers two PAYGo contract packages totaling $10,000,000 and a proposed in‑house general‑fund preservation package of $2,900,000, for a possible $12,900,000 increase this year if council selects all options.

The plan aims to limit the city’s growing backlog by funding preventative maintenance (in‑house, lower cost) and contract maintenance (PAYGo). "If we only fund the PAYGo maintenance, the risk that we run is that the good condition streets will deteriorate into that yellow and red category faster than we can fund the expensive projects out of it," Lane Zarate, assistant director for streets and stormwater operations, said during the presentation.

Why it matters: staff and an independent consultant, Freese and Nichols, concluded that preventive work now materially reduces future reconstruction costs. Staff estimated that every $1,000,000 spent on current maintenance saves approximately $7,500,000 in future reconstruction costs; the city estimates a bond reconstruction lane‑mile cost of about $2,750,000. City leaders said those avoided costs translate into fewer and smaller bond programs over time.

What staff proposed

- PAYGo: Two contract packages totaling $10,000,000. Package 1 would address municipal maintenance agreements (MMAs) with the Texas Department of Transportation (TxDOT) for 27 lane miles inside Fort Worth; staff estimated the TxDOT MMA backlog at $16,800,000 and proposed funding $4,100,000 per year toward that work. Package 2 would fund additional PAYGo contracts to add about 18 lane miles of heavy maintenance (estimated future reconstruction avoidance roughly $44,000,000).

- General fund: A concrete preservation program estimated at $2,900,000 in FY26. Staff said $1,000,000 of that is a one‑time setup cost and the recurring portion would be about $2,400,000 to operate two five‑person crews year‑round to perform crack sealing and other preventative treatments on roughly 2,700 lane miles of concrete streets on a five‑year cycle.

Staff framed the options as modular: council can choose none, some, or all packages depending on budget availability. "These amounts for each of those packages can be tailored to the leadership’s decisions," Lauren Prier, director for Transportation and Public Works, told council.

Details and recent progress

Staff said PAYGo is funded by a dedicated portion of the property tax rate. In FY25, 7.25 cents of the city's 67.25‑cent tax rate were dedicated to PAYGo, generating about $84,000,000 across all PAYGo categories; the transportation and public works share of the typical 3.5% PAYGo growth would generate roughly $2,300,000 under a baseline scenario. Last year’s $10,400,000 increase allowed the city to expand heavy maintenance from 56 lane miles to 89 lane miles, an additional 33 lane miles that staff said prevents about one minor roadway bond program each year.

Staff emphasized the tradeoffs between preventative, in‑house work (lower unit cost, city crews) and contractor‑delivered heavy maintenance (localized, higher cost, paid with PAYGo). "This battle to prevent the deterioration of our network really should be fought on all fronts," Prier said.

Council questions and clarifications

Council members asked whether TxDOT will fund maintenance and asked for examples of roadways covered by MMAs. Staff said many MMAs were agreed to decades ago and often include lighting or other infrastructure the city now maintains. "A lot of people are surprised to know the city is responsible for the street lighting on TxDOT highways that go through the city of Fort Worth," Prier said.

Council members also expressed equity and geographic concerns: some said the worst pavement appears inside the loop and asked how packages prioritize neighborhoods. Staff responded that streets inside the loop often require bond‑level reconstruction (beyond maintenance) and that the proposed packages focus on preventing additional lane miles from sliding into the high‑cost backlog.

What was not decided

No formal action or vote occurred during the work session; staff presented options and asked council to consider them as part of upcoming budget discussions. Council members requested a follow‑up that compares funding the gap via property‑tax rate increases, a fee/user‑charge approach, or a hybrid—ideally with monthly‑cost examples for households and businesses.

Ending

Staff said the combined plan, if fully funded, would significantly advance a multi‑year strategy to close the maintenance gap while avoiding more costly reconstruction later. Council scheduled further budget work sessions in June for follow‑up and asked staff to return with scenario analyses that show tax‑rate and fee impacts on typical households and neighborhoods.