Pavement Evaluation Survey Results and

Understanding Condition ValuesPCI

February 19, 2014

Pavement Evaluation Background• 113 centerline miles

• 121 miles used to normalize pavement width

• Pavement Condition Index (PCI) used to provide a single numerical rating of pavement condition for comparison purposes

• 4 year evaluation interval is recommended

Results of Pavement Survey

• 2007-2011 partial pavement surveys by staff had an average PCI value of 72 (Fair to Good)

• 2013 pavement survey by IMS had an average PCI value of 63 (Fair)

Current Condition of Roadway System

Condition PCI Value Mileage Percentage

Good 76-100 28.4 miles 25.1%

Fair 56-75 48.2 miles 42.5%

Poor 41-55 19.1 miles 16.9%

Failed 0-40 17.6 miles 15.5%

Total 113.3 miles

Results of Pavement Survey

32.4% or 36.7 miles rated Poor or Failed

Pavement Life Curve

Maintenance Recommendations& Estimated Costs

Condition PCI Value Maintenance Cost

Good 76-100 Crack seal andMinor Patching $1/sf

Fair 56-75Minor Patching

andResurfacing

$3/sf

Poor 41-55 Resurfacing &Structural Patching $5/sf

Failed 0-40 Structural Reconstruction $10/sf

Village Engineer’s Observations

• Lower cost preventative maintenance and minor rehabilitation is the best value to the community. i.e. crack sealing and patching

• Staff is confident we can consistently achieve a 20-25 year life between major rehabilitations with minimal investment in preventative maintenance and minor rehabilitation.

• 121 miles divided by 20 years = 6 miles per year.

• Staff estimates approximately $6.0 million should be spent annually to maintain 20 year cycle.

Historic Resurfacing Program

Miles of Roadway Resurfaced per Year

20 Year Resurfacing Goal

In 2010 focus was on roadway patching due to lack of funding.

Tonight’s Focus…Roads

• Funding roadway maintenance with General Fund surplus has been insufficient to appropriately maintain the roadway system.

• As we move forward and roads continue to decline, while costs go up, the issue will only get worse.

Issue• The Village of Gurnee does not have a dedicated funding

source to maintain municipal infrastructure.

• As a results, we are falling behind on pavement maintenance.

• Important to remember, infrastructure also includes:– Sidewalks – 146 miles– Street Lighting – 1,683 lights– Buildings – 5 main operating facilities– Water Main – 182 miles– Water Storage – 4 elevated tanks, 1 ground storage tank – Sanitary Sewer Main – 84 miles– Storm Sewer Pipe – 134 Miles

Expenses included in MFT and Capital Fund

Expenses included in Utility Capital Fund

Funding Alternatives

• Property Tax

• Home Rule Sales Tax

• Utility Tax

• Municipal Gasoline Tax

• Bond Issue

• Fund with Current Revenues

Property Tax

• The Village of Gurnee does not currently levy a property tax.

• Eliminated in 2000 in exchange for HMR Sales Tax.

• To generate $4.4 million, property tax rate of 0.433 would be required.

• Owner of $250k home would pay an additional $261 per year.

Property Tax ComparisonCommunityCommunity 2012 Property Tax 2012 Property Tax

– Predominant Rate– Predominant Rate

Waukegan 15.688

Grayslake 13.291

Lindenhurst 11.724

Mundelein 10.690

Gurnee* 9.337

Buffalo Grove 9.222

Gurnee 8.904

Vernon Hills 8.854

Deerfield 8.435

Lincolnshire 8.057

Highland Park 7.612

Libertyville 7.532

Lake Bluff 6.085

Lake Forest 5.099

* = Gurnee rate if 0.433 tax rate were added to current rates.Source: http://countyclerk.lakecountyil.gov/TaxInfo/Tax-Info-District/Pages/default.aspx

CommunityCommunity 2012 Property Tax - 2012 Property Tax - Municipal OnlyMunicipal Only

Waukegan 2.827

Mundelein 1.481

Lake Forest 1.148

Buffalo Grove 0.929

Deerfield 0.719

Highland Park 0.709

Lake Bluff 0.700

Grayslake 0.575

Libertyville 0.565

Gurnee* 0.433

Lindenhurst 0.314

Lincolnshire 0.241

Gurnee 0.000

Vernon Hills 0.000

Home Rules (HMR) Sales Tax• Currently 0.5% = $4.4 million annually.

• The HMR sales tax does not apply to the purchase of groceries, drugs, or licensed vehicles.

• Administered and collected by the State, thereby eliminating the need to add additional staff or funding to manage collection.

• Increase by 0.5% generates $4.4 million additional revenue.

• Funds can be dedicated solely for infrastructure improvements via policy adopted by Village Board.

• Effective January 1 or July 1 annually.

Statewide HMR Sales Tax Comparison

RateRate # of Communities# of Communities PercentagePercentage

3.00% 1 0.6%

2.25% 2 1.1%

2.00% 5 2.9%

1.75% 4 2.3%

1.50% 24 13.7%

1.25% 21 12.0%

1.00% 70 40.0%

0.75% 24 13.7%

0.50% 21 12.0%

0.25% 3 1.7%

72.6% at 1.00% or greater

Source: http://www.revenue.state.il.us/Publications/LocalGovernment/ST-62.pdf

Gurnee

Property Tax vs. Sales Tax

• To generate $4.4 million in revenue….

– Owner of $250k home would pay an additional $260 per year.

– To generate an additional $260 in sales tax revenue, resident would have to spend an additional $52,000 per year on local retail goods.

Utility Tax• Imposed on all persons engaged in the business of

distributing, supplying, furnishing or selling gas or electricity for use or consumption within the Village.

• Can be percentage of gross receipts or unit based (per therms or per kilowatt hour).

• Regressive in nature - proportion of an individual’s income devoted to consumption declines as income increases, persons at the lower income levels, therefore, tend to pay a larger share of their income in utility tax.

Municipal Gasoline Tax• Imposed upon the privilege of purchasing motor

fuel at retail facilities within the Village.

• Gas station has the duty to collect tax from each consumer at the time of the motor fuel sales transaction.

• Submitted on a monthly basis. Village staff processes payments and monitors collection activity.

Municipal Motor Fuel Tax

• Gurnee has 10 gas stations.

• Using IDOT traffic counts, staff estimates the following revenue:

Tax Rate per GallonTax Rate per Gallon Total Projected RevenueTotal Projected Revenue

$0.01 $174,000

$0.015 $261,000

$0.02 $348,000

$0.025 $435,000

$0.03 $522,000

$0.035 $609,000

Next Steps

• Village staff is seeking feedback on how to proceed:– Status Quo?

– New revenue dedicated to infrastructure improvements?

– Something in between?