The City is once again faced with the challenge on how to adequately fund street resurfacing.
The past two years, it has relied on borrowing money based on gas tax revenues, but Mayor Ed Lee’s budget director Greg Wagner said Wednesday that solution is probably no longer a good idea.
Capital spending is “another big piece of our deficit projection,” Wagner said. The City’s 10-year capital plan “assumes that we will spend about $73 million in general fund cash in the coming year.”
But to help close the deficit, The City is looking at a $30 million reduction in capital spending.
“We have a huge backlog in our infrastructure maintenance needs and that includes our street resurfacing, and right now if we make this level of reduction in our general fund spending on capital, our street resurfacing budget will decline into the next year and we will have a dropoff in our ability to do repaving,” Wagner said.
Later this month, the board’s Budget and Finance Committee will hold a hearing on The City’s capital plan and discuss street funding.
One option under consideration is putting a general obligation bond on the ballot to pay for the street work backlog and then identify a steady revenue source for ongoing needs.
Wagner noted about six years ago voters rejected a bond to pay for street repairs.
Paying for street repair is just one component of the budget woes.
The City must tackle to close a $383.4 million by July 1.