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Council considers $27M bond for roads

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BY DEENA WINTER / Lincoln Journal Star

Tuesday, Nov 07, 2006 - 12:12:33 am CST

The City Council is considering a $27 million highway allocation bond that would build new streets on the city’s edge and help pave up to 15 blocks of gravel roads within the city limits.

The council held a public hearing Monday on the new street funding proposal. The city would use the extra million dollars in vehicle sales-tax dollars it squeezed out of state lawmakers last year to leverage $27 million.

The city would start out using those dollars to repay the bond and gradually move to using general funds to repay the bonds, which means a property tax increase is possible.

The city would also begin using general funds to cover expenses currently paid for with highway allocation dollars, such as snow removal and repairs to streets, sidewalks, and trails. The city’s property tax levy would be adjusted accordingly.

That means next year the council would have to commit an estimated $660,000 in general funds toward the bond payments, which would increase to $2 million in three years, or about a 1-cent increase in the city’s property tax levy. That equates to $4 per $100,000 of assessed valuation.

“It’s yet another way to try to stretch the dollars even farther,” said Mayor Coleen Seng’s chief of staff, Mark Bowen.

The money would make a dent in a street financing gap estimated at more than $135 million over the next dozen years.

The last time the council approved a highway allocation bond was in early 2004, when it passed a $35 million bond that didn’t rely on property taxes for repayment, but an increased wheel tax.

The money would have to be spent within three years, beginning with the 2007-2008 budget.

The ordinance requires that 80 percent of the money go toward new arterial street construction on the city’s fringe and 20 percent be spent within what was the city limits in 1960.

Of that 20 percent, $750,000 would be available as matching grants to help residents in low- to moderate-income residential areas pave gravel roads. The benefiting owners would pay half of the cost, and city would pay the other half.

That should be enough to pave about 15 blocks. If there are no takers, the money would instead be used for arterial streets.

Lincoln gadfly Bob Van Valkenburg railed against the bond.

“You people don’t have a problem spending money because it’s not your money,” he said.

The Home Builders Association of Lincoln supports the concept of devoting most of the money to new streets, spokesman Fred Hoke said, because it will developments get built more quickly.

He said the resulting construction jobs and new tax revenue should help ensure the property tax impact is minimal.

“It is a small step because $27 million is nowhere close to the amount of road bonding capacity that we should have,” he said.

The Lincoln Independent Business Association, Realtors Association of Lincoln and Lincoln Chamber of Commerce also support of the bond.

The council will vote on the proposed bond next week.

Reach Deena Winter at 473-2642 or dwinter@journalstar.com.

Proposed street projects

Proposed street projects if the City Council approves a $27 million highway allocation bond:

2007

* South Street from Eighth Street to 18th Street

2007-2008

* South 27th Street from Pine Lake Road to Yankee Hill (sidewalks and gravel/substandard paving)

* Fletcher Avenue from 14th Street to Telluride (27th Street)

2008

* Pine Lake Road from 84th to 98th streets.

* 98th Street from Highway 2 to Pine Lake Road

2009

* West Denton from Folsom to Amaranth (near the future Southwest Village development in southwest Lincoln)

* Alvo Road from Northwest 20th Street to North First Street

* West Adams from Northwest 56th Street to Northwest 48th Street

* Adams from 75th to 84th streets (near the 84th and Adams development)

Source: City of Lincoln


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omnione wrote on November 7, 2006 2:41 am:
" I'm a progressive metro-area guy with passion, but why couldn't the city at least fix more roads within the core of the city as opposed to building more new streets for the rich suburbanites? The South Street one is the only one that addresses an inner-city street issue. For example, there's W street on the UNL City campus where one half of it has the concrete torn off showing the brick underlay and the other half is still intact. (I have to admit, that street has been like that forever, so please correct me if I'm missing some law or agreement here) "

whatever wrote on November 7, 2006 5:18 am:
" This Bond will fail. When will you people in Lincoln realize it doesn't matter what the issue is, property owners in Lincoln are fed up with increasing property taxes. Figure out a way to grow your economy and generate more revenue, or make the builders pay their share in new infrastructure. "

Steve wrote on November 7, 2006 7:18 am:
" Nope. As long as the engineers of this city continue to build above-standard intersections (IMHO) and then hope there's enough money to connect the excessive intersections together...I'll vote against every bond issue. Change your tune so there's money left over for the WHOLE project...not just bits and pieces. (Yeah, yeah...build it right the first time. A lot of good that does when there's a 2 lane road going into a 6 lane intersection. And it stays that way for years.) "

Tired of higher taxes wrote on November 7, 2006 7:42 am:
" Here we go again...spend spend spend. When will they understand, I don't have anymore to give. "

Sean1 wrote on November 7, 2006 7:46 am:
" How about using the 1 million to repair the streets already in existence that have been neglected for so long instead of picking the pockets of taxpayers in order to make more money for the developers? "

Taxpayer wrote on November 7, 2006 8:31 am:
" I would be much more supportive of this if it went to making soem actual aimprovemtns on roads we already have major problems with. 70th north of O needs to be widened all the way to HWY 6 and 27th and 48th need to be widened also. "

Roger wrote on November 7, 2006 8:34 am:
" I've said it once and I'll say it again, if they can't get money through the voters they will use every method known to man to get it through and you will keep paying and paying and paying until you finally say oh crap I'm leaving this town it cost way too much. $4.00 here and 4 dollars there doesn't sound like much but when you keep adding it on and on and on and on and on and on and on and on and on and on, get my point. We as a city are just plain needing a better Management system for the use of our money. The current System is broke and needs fixed and government for and by the people is being abused. "

a brilliant idea! wrote on November 7, 2006 8:56 am:
" How about South 27th between South and Hwy 2? Oh, wait...that'll never get done with this city council in place. Too many "important people" live down there. Yet more buddy-buddy politics at work! "

Nb wrote on November 7, 2006 8:56 am:
" Great, just keep pumping up my property taxes and you will drive me out of town eventually! All this talk about new roads and meanwhile in front of my mother-in-laws house there are pot holes so big it looks like Lake Erie when it rains. We have complained several times to the city and seen absolutely no results. Of course, we do live in North East Lincoln, and not down where all the money is so that might be the difference there. You've got to be able to repair what is already wrong and build new stuff when it's needed, not in antcipation of it being needed some day. In the meantime, leave my property tax alone!!! "

Goodby wrote on November 7, 2006 9:47 am:
" Well here goes the property taxes again. Must be nice to live in an apt. and use the streets for free. Thanks for running me out of the city and state. My fixed income has seen its limit for property tax that is so far out of line it isn't funny. At least I can go back to my former city/state and pay 4 times less property tax and have much better streets and services. At least I won't have to listen to the Fire Dept crap and the ambulance crap and all the rest. My former state had ALL their city and county roads paved more than 50 yrs ago. They preserve and keep up historic buildings that are beautiful and all Lincoln can do is tear down and build new and more expensive bldgs. Sometime I wonder if Nebraskans were behind the door when the brains were passed out. Everybody could vote against the bond and the city will get it or else you'll get stabbed in the back. Voting here means nothing. "

confused wrote on November 7, 2006 10:02 am:
" Nowhere in the article does it say that voter approval is required. Do voters have a say or not?? Was there a vote on the 2004 highway allocation bond paid for by higher wheel tax? "

come on wrote on November 7, 2006 10:06 am:
" Lay off the property tax for once. This city council is out of control with their tax hikes and spending habits and it needs to stop. "

tim wrote on November 7, 2006 10:39 am:
" oh joe say it aint so. we gots gravel roads in lincoln? how po-dunk can this city be. "

ted wrote on November 7, 2006 11:01 am:
" I live on H St. The road surface on 11th St between L and I is the worst in the city with no plans for resurfacing. I would vote against any bond issue unless it first addressed the older bad roads in the city center. "

rich suburbanites? wrote on November 7, 2006 11:18 am:
" FYI not all the "suburbanites" that this road construction will benefit is rich. And the reason that a lot of the roads in the "rich" district are nice is because they are NEW!! Do you see something wrong with an expanding city? I thought that was always good for the city of Lincoln! "

Colby wrote on November 7, 2006 12:25 pm:
" The voters don't get to vote on this, it only takes Council action to approve it. Lincoln will never get anywhere unless the people are willing to invest in improvements. NASA had the problem of "Go Fever"; Lincoln definitely has the problem of "No Fever". Just do it. "

Jan wrote on November 7, 2006 12:34 pm:
" Remember this city council when the next election comes up and don't put any of them in the Mayor's office. In fact lets vote all of them out. "

silly wrote on November 7, 2006 12:42 pm:
" Notice how the majority of these areas are in south Lincoln? I swear its like north lincoln is just getting bent over a barrel when it comes to getting some roads love from the city. "

JMK wrote on November 7, 2006 1:06 pm:
" Great, here we go again. They won't be happy until they just take our paychecks and give us an allowance to live on, and it won't be much either "

Jim wrote on November 7, 2006 1:09 pm:
" VOTE FOR 423!!! Stop the stupidity "

Barry wrote on November 7, 2006 1:19 pm:
" Gravel roads are not cheap either. It takes man hours and equipment to maintain them. Once a road is paved, it is relatively low maintenance and therefore less costly over time. Calculate things a little before you fly off the tax handle. Or whine and whine, which we are all so blessedly skilled at. "

T4acres wrote on November 7, 2006 2:18 pm:
" This is chump change - there should be no need for a city of this size to raise taxes to pay for a road construction bond this small. When compared to projects like Antelope Valley or a proposed new arena, this is nothing. But if you feel that you're already overtaxed, please leave immediately - I'm tired of your whining. If you think your life would be better in another state, good luck to you. I've looked around and any area that is maybe a little cheaper is a dirt hole. I'd rather interact only with neighbors who are happy to live here. "

Dick wrote on November 7, 2006 2:46 pm:
" 423 won't stop the CITY government from doing this. 423 is for the state government. "

Hemet wrote on November 7, 2006 3:29 pm:
" I hate to say it, you need this kind of infrastructure to attract and support new business and the people it brings. If this is to become a real and vibrant city people think nothing of letting developers pay for it and besides, you can always move your living quarters to the outskirts, like Denton or Eagle. Does not mean you can't enjoy the benefits of the city a stones throw away. "

omnione wrote on November 7, 2006 3:33 pm:
" To rich suburbanites?, just look at the correlation of the streets proposed and the income distribution of the city. There are the new streets for the Southwest Village, Pine Lake Road, South 27th near Yankee Hill (where a lot of HUGE houses reside), 98th street, Alvo Road(just north of the Fallbrook region). Most of these areas are near residential areas with larger homes and incomes. I'll give you the proposed Adams street ones, but that's about it. You seem to have missed my point. Of course the new roads are better because they are new. My point is that some of the older roads toward the center of Lincoln need to be made new again! If you had read my post fully, you would have read that I am a progressive development guy who would like to see Lincoln grow and adapt as opposed to staying small like some people. I am a staunch supporter of the Antelope Valley Projects, arena proposals, downtown development, and yes, new development on the periphery of Lincoln. So, I don't have a problem with an expanding Lincoln so long that the projects are worthwhile. I just have a problem with an expanding Lincoln with a ROTTING city core! "

Justice for all wrote on November 7, 2006 4:47 pm:
" Let me see if I have this right, we had a company that wanted to build at 84th and adams that said they would pay for the street improvment, and the mayor said no. so she would rather have us pay for it. So now we have no retail center and we pay for the roads. But we do have a Hy-vee that we have to pay for the infrastructure. Thanks Mayor seng. "

Parent of deployed soldier wrote on November 7, 2006 10:01 pm:
" My son addressed the City Council before he was deployed to Iraq about paving 1(ONE) block of gravel road that runs by his home. After he was deployed, he received a letter saying it was not in the budget or current city planning. I wrote to the City Council explaining that my son was deployed and unable to adrees them personally again about this issue and would they reconsider. Never heard anything back! No takers for getting intercity streets paved? Who have (or haven't) you been talking to? "