Street Maintenance Fee

Transportation funding is one of the most challenging issues facing cities. Over the past decade, the City of Lake Oswego has used a variety of funding sources including State gas taxes, franchise fees, system development charges, general fund monies, road transfer revenues and, most recently, general obligation bonds to construct and maintain its transportation system valued at $182 million. Because these funding sources have either been spent or are diminishing in purchasing power relative to inflation they are not sufficient to protect the City's investment in its street system.  Recognizing this challenge, the Lake Oswego City Council established a goal in January 2002 to identify and establish a sustainable funding source for street maintenance.

Pavement Preservation Program
In 1999 the City adopted a Pavement Management Program concurrent with the completion of the City's first pavement condition assessment. This program required a comprehensive pavement condition assessment for each street in the City. Through the Pavement Preservation Program the Street Maintenance Fee is used to re-pair and replace streets.

Investment Fundamentals
Due to advances in construction techniques and materials quality, new asphalt streets can be expected to last about 20 years before complete reconstruction is required. Each dollar spent for street maintenance before major deterioration begins, $3 to $4 is saved. A typical street could decline 40% in quality in as little as five years without needed maintenance.

To maximize the return on our  investment, the City's Pavement Management Program will:

• Prioritize maintenance investments to streets with PCI ratings less than 70
• Strive to achieve and then maintain a system-wide average PCI of 70

Street Maintenance Fee Rates
In March 2010, the City Council voted to increase the Street Maintenance Fee. This was done out of concern for the growing expense of backlog in street maintenance. Without an adjustment, unreasonable cost increases would be passed on to future generations to repair roadways. In increasing the investment in roads, the City is better able to maintain and repair roads in a manner that prevents future costly repairs.

Recognizing the difficult economic times for both residents and business, the City Council chose to phase the increase next three years as opposed to implement the change all at once. The 1.2 million in additional revenue will be phased in at 25%, 35% and 40% increments.

Street Maintenance Fee, Monthly Rates, 2010-2012, Index not Included

The Street Maintenance Fee will be indexed every year based on the Engineering New Records Construction Cost Index 20-City Average. The increase from the index will be limited to or collared between two and seven percent change. At this time, ENR index for 2010 is available.

Street Maintenance Fee Changes 2010, Including Index, Monthly Rates

Questions?
Do you have any other questions about the City's Pavement Preservation Program and the Street Maintenance Fee?
If so, check out our Frequently Asked Questions page.