Goldsboro advances pavement-preservation plan and weighs $20M funding gap

Goldsboro city staff on Sept. 22 presented a pavement-preservation plan that uses targeted treatments — crack sealing, microsurfacing, rehabilitation and reconstruction — to extend the life of the city’s streets while keeping mobilization costs down.

The program presentation, led by Jonathan of Public Works, proposed concentrating work on long runs of contiguous blocks to reduce equipment mobilization and to maximize value. "Microsurfacing ... extends the life of the asphalt by 6 to 9 years," Jonathan said, and staff recommended beginning design and permitting now with construction targeted to begin in April and a six-month construction window to finish the first round.

Why it matters: an earlier city street study concluded the community needs roughly $3.2 million per year to maintain current pavement condition and avoid falling further behind. Council was presented with $1.2 million in Powell Bill funds and other budgeted amounts this year, leaving a multi‑million-dollar annual gap.

Davenport Associates, the city’s fiscal consultant, outlined two broad ways to close that gap. The first is a pay‑as‑you‑go approach that would require the city to identify roughly $2.0 million per year in new, recurring local revenue to reach $3.2 million annually. The second uses periodic borrowings: Davenport modeled issuing about $4 million every other year (five issuances over a decade) to finance a $20 million shortfall, with a conservative 5% interest assumption and estimated interest of roughly $5.5 million over the financing period.

Consultant Mitch of Davenport framed the trade-offs: "We looked at 1,200,000.0 of Powell Bill funds versus 3,200,000.0 of annual needs over the next 10 years," he said, noting general obligation bonds require a voter referendum and that installment financing or limited‑obligation approaches would have different collateral and timing implications. The consultant also explained that the Local Government Commission must approve most financings in North Carolina and will assess whether the amount borrowed is adequate but not excessive for the planned projects.

Council response and next steps: councilmembers repeatedly asked staff to clarify the budget numbers that were adopted in June and whether additional one‑time or recurring revenue could be identified. Finance staff confirmed that $1,216,275 in Powell Bill funds was allocated for street reconstruction and that the budget incorporated $1.2 million for street improvements this fiscal year; councilmembers said they believed more had been set aside and asked staff to re-present budget sources at the next meeting. Staff asked council for consensus to return the pavement‑preservation program as an old business resolution at the Oct. 6 meeting so final specifications can be completed and the project put up for bid.

The council did not adopt financing tonight; instead it directed staff to provide clearer budget documentation and to return with a resolution for formal action next meeting. If the city chooses a financing route, staff and bond counsel said a referendum and Local Government Commission approval would add months to the schedule, with the earliest issuance likely in 2027 if a November referendum were pursued.