Staff will review the current secured funding and future funding needs for the Arterial/Collector Preservation Program (105 Fund) and the Local Street Preservation Program (103 Fund). In addition, to prepare for the development of the 2023/2024 Biennial Budget, staff will briefly review funding options available for Council consideration.

The City uses the Pavement Condition Index (PCI) to determine and track the condition of all public roadways within the City and the current Council adopted target for the average PCI rating for all streets is 70. Forecasting completed in 2021 indicated that to reach and maintain the targeted average of 70 PCI, an investment of $5 Million annually for the Arterial/Collector Preservation Program and $2 Million annually for the Local Street Program is needed. The Arterial Street Program currently has sustainable funding allocated of $1.5M annually that is supplemented with grant funding when available and the Local Street Program is currently funded through 2022 with no identified funding beyond this year.