Albany Council reviews grim pavement data and models local fuel-tax options to fund repairs

Albany City Council on Monday received an updated pavement-condition briefing showing a sharp decline in the condition of local residential streets and discussed placing a local fuel tax on the November 2026 ballot to fund repairs.

Stacy Balcastro, speaking for city street operations, told the council that a full visual inspection completed this fall updated the pavement-condition index (PCI) values citywide. She said arterial and collector streets remain largely stable, but "local streets in poor condition increased by 11 miles" since the prior inspection and that residents consistently rate street condition among the city's top concerns. Staff modeled two local fuel‑tax scenarios: a 5¢‑per‑gallon tax would enable improvements to roughly 8.2 miles of local streets over 10 years using a worst‑first approach; a 7.5¢ tax would extend repairs to about 11.4 miles, using a lower‑cost pavement design to stretch funds.

The presentation stressed assumptions behind the scenarios: existing sidewalks, curbs and gutters would generally not be replaced, curb‑ramps would be brought into ADA compliance, and a cost‑effective resurfacing approach (grind and overlay of ~3 inches instead of full 5‑inch reconstruction) would be used on many blocks.

Staff also emphasized outreach and legal constraints. "We received proposals from seven consultants" to lead a public‑education campaign that will comply with Oregon Revised Statutes restrictions on political advocacy by public employees, Balcastro said, adding the city hopes to have a contractor under contract by year’s end.

Councilors asked technical and practical questions about what a failed PCI looks like in the field, eligibility of state transportation funds for local streets, and how projects would be prioritized. On that latter point, one councilor said they supported a "worst‑first" methodology for fairness. Staff noted that not all state transportation funds are eligible for local streets and that some programs are restricted to arterials and collectors; however, if the state transportation package discussed later in the meeting is implemented, Albany could see additional highway funds.

Legislative context complicated the local discussion. Staff described House Bill 3991 — a recent transportation funding package that, among other changes, raises the state gas tax by 6¢ per gallon — and said that if enacted as written Albany would receive roughly $1.4 million more annually in state highway funds. But staff warned that petitioners have gathered signatures to refer the measure to voters, which would pause implementation and could coincide with the council’s proposed local ballot measure in November 2026.

Next steps: staff will continue refining funding scenarios, proceed with consultant selection and community engagement under the limits of state law, and return to the council with recommended ballot language and a prioritization methodology.