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Improving and maintaining Albany's streets costs more than what is currently available to do the work. Since arterial and collector streets serve most Albany residents, visitors, and commercial traffic, we are evaluating their condition, setting maintenance goals and looking for ways to cover the cost. Local streets also require maintenance; setting goals and deciding how to pay for fixing them are pending.

At the March 20, 2017, City Council Work Session, the Council set a goal to maintain all arterial and collector streets in fair or better condition (minimum PCI of 60). This target was selected by balancing desired levels of service, anticipated costs, and the fact that providing routine maintenance (i.e. overlays, etc.) is the most economical way to preserve a street (see Keeping Pavement in Good Shape and Why That's Important).

"maintain all arterial and collector streets in fair or better condition (minimum PCI of 60)"

Albany is responsible for approximately 33 miles of arterial and collector streets. The average PCI for these arterials and collectors is 68, slightly better than the entire City street system average of 60. Arterials and collectors that are under Albany's jurisdiction are shown in the next map.

How do we fund our pavement management goals?

Two types of funding are recommended to meet pavement management goals on arterial and collector streets. A lump sum investment would bring failed arterials and collectors into good condition. Next, annual revenues are needed to maintain streets and avoid costly reconstruction. The amount required for each of these was estimated in March 2017:

$20 million lump sum
investment (i.e. bonds) for arterials and collectors
that require complete reconstruction.

$5 million annually
to adequately maintain all arterials and collectors
to avoid costly reconstruction.

Construction costs will increase over time and so will the amount of funding needed to keep up Albany's streets.

What funding is available now?

About $1.6 million (2017 dollars) is available from a variety of sources each year for Albany street projects. Some of the money is restricted to specific purposes, and other funds are not guaranteed to be available every year. Storm drainage improvements have historically been included in street projects, so that part of the $1.6 million is funding storm drainage and not all spent on streets. A recent City Council decision to raise stormwater fees will provide more money for the stormwater system and free up those street funds to be used on street work. 

Some good news: Keep Oregon Moving, Oregon House Bill 2017, raised the state gas tax and provides additional street revenue to Albany and other cities. The Oregon Department of Transportation has estimated that Albany will receive $350,000 more in 2018, and that will grow to $1.7 million by 2025.

Funding Gap

Funds are not available for the $20 million lump sum investment and annual revenues fall short of the required $5 million (2017 dollars) annual investment in maintenance of arterial and collector streets.  The graph below shows that despite anticipated growth in revenues, including from Oregon House Bill 2017, those revenues are anticipated to only keep pace with inflation such that the anticipated funding gap in 2019 and 2027 are the same.

funding gap sw pays sw costs

Visit Past Presentations and Public Meetings to see the March 20, 2017 memo, presentation, and meeting minutes where the City Council discussed pavement condition goals for arterial and collector streets, strategies to achieve those goals, and funding alternatives. Discussions regarding the updated funding gap can be found in the materials provided for the November 8, 2017 City Council Meeting.