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?