Poulsbo staff warn current neighborhood-streets fund won’t cover $26M needed to fix failing roads

Mike Lund, the city’s public-works superintendent, gave a 2026 update on Poulsbo’s neighborhood streets program and the backlog of failing streets, telling the council the city now has roughly 55 miles of roadway and an average Pavement Condition Index of about 70.

"Our average, PCI score, as I mentioned, is 70, which is fair and satisfactory," Lund said, and walked the council through how preservation work (crack sealing, seal coats, scrub seals) can extend pavement life while full rebuilds are vastly more expensive.

Lund said the program’s current reserves are about $1.6 million and the annual allocation is roughly $445,000. He outlined a multi-year plan that relies on scrub seals, single- and double-chip seals in specific neighborhoods and targeted overlays, but cautioned the current funding will be exhausted: "To do all the stuff in town, just for full rebuild on the roads that are poor... I got 26,000,000. My neighborhood street's money ain't gonna cover it," he said.

Council members asked staff to identify priorities, to factor in utility and sidewalk needs in older neighborhoods and to look for grant leverage and other funding alternatives. Public works director Diane Linius and city engineers said the Violytics pavement-assessment software helps prioritize work and that some grants and shovel-ready projects can increase leverage for state and federal funding.

The presentation concluded with staff urging the council to consider a broader revenue strategy — including Transportation Benefit District options, grants and phased work — to avoid letting more streets progress into the most costly failure modes.