Street Maintenance Fee

Rising costs and a growing street network have led to deteriorating conditions. Resident surveys consistently rank street maintenance as a top priority and an area of low satisfaction. The SMF would increase funding for preservation and heavy maintenance — far more cost‑effective than allowing streets to decline to full reconstruction, which currently affects 150 lane miles per year and adds about $375 million annually to future bond needs.

With an estimated annual funding gap of $66 million, the SMF would provide:

• Stable funding not tied to property values
• Dedicated dollars that do not compete with other City services
• A fair distribution of costs based on roadway use
• A solution that avoids raising the tax rate

The proposed SMF is projected to raise $27.4 million annually — about 40% of the identified funding gap. While not a full solution, it significantly expands the City’s maintenance program in a manageable way that can be delivered immediately.

All SMF revenue would be restricted to eligible maintenance activities, including preservation of good‑condition streets and heavy maintenance of fair‑condition streets. Though fee revenue cannot be used for reconstruction of poor‑condition streets, the additional maintenance is expected to prevent roughly $125 million in future reconstruction each year, reducing future bond needs by about 34%.

For the first time, the City could implement a proactive preservation cycle, crack‑sealing every good‑condition street every five years. Heavy maintenance would also increase by 50%, improving 72 additional lane miles annually. Over time, this approach helps keep good streets in good condition while bond programs focus on rebuilding the poorest roads.

The fee is based on a widely used, industry‑standard methodology that measures traffic generation for different property types. Because all vehicles contribute to pavement wear, this approach provides a fair and defensible way to distribute maintenance costs.