The following is a very informative article in today's Greensburg Daily News (GDN)of 9-23-14.
I encourage everyone to read this article as it talks about the lack of funding , and escalating costs for road paving in our community.
After reading this article.....I have one question.....why are we bulding a NEW road, that will also need maintenance , in the name of economic development, when our economic development numbers are one of the best in the state and our funding to maintain and repair our roads is drying up? Here is a link to our most current unemployment numbers:
www.greensburgdailynews.com/news/local_news/article_a142cfc1-d12b-5763-92f5-e5fd06a2eb5d.htmlHere now is that article form the 9/23/14 GDN. I could not find this article in the online GDN so I have typed this in.
Rising Costs; lower revenues hampering road repairs
By Boris Ladwig
Daily News
GREENSBURG -- Street
department workers walked north in the middle lane of Lincoln Street Friday afternoon behind a slow-moving truck to seal some cracks in the road.
The department had rented the truck for some maintenance, to try to prevent water from infiltrating the road this winter and causing cracks to expand, which eventually could endanger vehicles and motorists.
Using the machine cost the department about $10,000 per day, plus wages of employees, but crack sealing and other types of preventive maintenance are becoming more critical as revenues for road repairs, decline at the same time that asphalt prices keep going up.
Street Department Commissioner Mark Klosterkemper said that sealing cracks in roads can help extend pavement life to 20 years. But that works only with roads that are in decent condition. Crews also crack-sealed Michigan Avenue near Honda last week, a road that was paved in 2008. But other roads in the city are so pock-marked with holes that it makes no sense to try and seal them, Klosterkemper said.
Funds to repair roads are declining: In 2008, the street department had about $475,000 for road repairs. This year, it's only $270,000, most of which comes from federal and state redistributions of gas tax monies.
Prices for asphalt, meanwhile, continue to rise. In 2008, the street department paid $38 per ton for asphalt. Last year it was $51 per ton.
What's worse: The department has to use the same dollars to purchase salt to clear roads of snow and ice. And the price of salt, which was about $41 a ton in 2008, costs $84.50 per ton this year.
Klosterkemper typically keeps about 100 tons or so of salt in reserve to give him a head start the following winter. However, the last winter was so rough that he used his annual allotment of road salt plus all of his reserve.
Snow and ice have to be removed for safety, he said, but every dollar spent on snow removal reduces the amount left over for road repairs.
Some cities have a tax levy for their street department. For example, North Vernon is projected to receive $243,000 in property tax revenues this year to help pay for road work. Nearby Rushville is to receive about $300,000. And Batesville is scheduled to gain nearly $600,000. Shelbyville, Columbus, and Greensburg, on the other hand, have no tax levies specifically for road repairs --- though city officials said that figure will increase in the coming years.
And even cities like Rushville and Batesville, which earmark part of their local property tax revenues for road repair, still have to remain within their maximum levy, the maximum number of dollars they are allowed to raise from property taxes. If Greensburg wanted to earmark more property tax revenues for road repairs, it would have to make cuts elsewhere.
"That's tough to do," Klosterkemper said.
City Council President Blake O'Mara said the trends of declining funds and rising costs are posing challenges for cities all across the state.
"It's definitely a concern," he said.
The quality of roads is important to local residents, but it also plays a critical role in economic development, he said. Companies are less likely to choose to expand their business operations in Greensburg if the local infrastructure is crumbling.
Councilman Glenn Tebbe said that the City Council already has decided to restore one of the mechanisms that funneled local property taxes toward road repair to its original level.
"That should help," Tebbe said.
At the same time, the council may have to look at redirecting funds from elsewhere in the city budget, he said, though any long-term fix will have to involve state and federal governments.
The federal and state gas taxes is assessed by gallon, which means that if people drive less or drive more fuel efficient cars, federal and state governments collect fewer gas tax dollars. And that means the dollars that are distributed to local governments decline.
"It's a bigger question than just Greensburg," Tebbe said.
Despite the constraints, O'Mara said, "the roads will be repaired."
"It's alarming .... but there's no need to panic either, he said.
Greensburg Mayor Gary Herbert concurred, saying that the quality of roads pertain to public safety.
"We're going to fix what needs to be fixed," Herbert said.
Herbert and O'Mara said the city could use money in its Rainy Day Fund or riverboat gambling proceeds or Economic Development Income Tax revenues to help pay for road repairs, if needed.
Herbert said via email that the city has more than $3 million remaining in funds that could help pay for road repairs.
Klosterkemper, the street department commissioner, said he sometimes fields calls from people who voice their displeasure about deteriorating roads, but he said that with tight budget, the department has to choose very carefully about which roads to repair.
He said the math is pretty simple: The City takes care of 70 miles of roads, and pavement lasts about 15 years. That means the city should repair about 5 miles of road every year to keep them in good shape. However, the department has enough funds only for 2 miles. And with a big road salt bill, rising asphalt prices and declining gas tax revenues, that figure may diminish further.
"We're fighting a losing battle," Klosterkemper said.
Contact: Boris Ladwig
812-663-3111 x 7401; boris.ladwig@greensburgdailynews.com
