Raisin Township JULY 8, 2019 1. Maintenance 2. Funding 3. - - PowerPoint PPT Presentation

Raisin Township

JULY 8, 2019

1. Maintenance 2. Funding 3. Improvements 4. Condition

Who Maintains the Public Roads in Lenawee County?

▪ Cities and Villages ▪ MDOT ▪ Lenawee County Road Commission

12 Municipalities

206 miles

MDOT 154 miles

LCRC 1,532 miles

Where does Road Funding come from?

All road commissions receive their funding from four sources:

• 1. State Collected Road Funds
• 2. State General Fund Revenue
• 3. Federal Road Funds
• 4. Local Contributions

State Collected Road Funds

Michigan Transportation Fund (MTF)

➢ State fuel taxes

• Gasoline and Diesel tax: $0.263/gal

➢ Vehicle registration fees ➢ License fees

Main source of LCRC Revenue

($10.5 million for LCRC in 2018)

State General Fund Revenue

November 2015 - Transportation Revenue Package

• FY2019: $150 million from general fund to MTF
• FY2020: $325 million from general fund to MTF
• FY2021: $600 million from general fund to MTF

Federal Road Funds

$0.184/gal Federal Fuel Tax

Congress determines how much is returned to each state. Federal Funds returned to Michigan

75% - MDOT 25% - County Road Commissions, Cities and Villages

• None go directly to local agencies
• All require matching funds
• Used only on Federal Aid eligible roads

Local Contributions

Road Commissions have no taxing authority Road Commissions receive no revenues directly from property taxes

Local Contributions

Sources of Local Contributions

• County General Government
• Townships

Local Contributions

Lenawee County Township Funding for Roads

• All 22 townships fund road improvements
• General Fund, Millages, and Special Assessments

$3.6 million in Township Contributions in 2018

Fix the Local Roads with MTF Money?

Distribution of State Collected Road Funds

Revenues from the MTF are distributed according to the formula established in Public Act 51 of 1951. MTF Funds are divided between the 3 levels of government in Michigan with jurisdiction over roads.

1) MDOT 39.1% (8% of roads) 2) County Road Commissions 39.1% (75% of roads) 3) Cities and Villages 21.8% (17% of roads)

Statutory Grants – Taxes/Fees $242 Million

Rail Grade Crossing $ 3 million Grade Crossing Surface Account $ 3 million Critical Bridge Debt Service $ 2 million 3 cents of Gas Tax $ 131 million State Trunkline Bridges (½ cent of Gas Tax ) $ 23 million Local Bridges (½ cent of Gas Tax) $ 23 million STF Debt Reduction $ 50 million Movable Bridge Fund $ 5 million Local Agency Wetland Mitigation Bank $ 2 million

Economic Development Fund $40 Million MDOT Administration and Planning $29 Million Grants – Other State Departments $25 Million Comprehensive Transportation Fund $250 Million

Net Michigan Transportation Fund (MTF) Revenue: $2,795,00,000

Recreation Improvement Fund: $24,000,000

FY 2018-19 Michigan Transportation Fund (MTF) Revenue: $2,819,000,000

Statutory Grants $38 Million

Local Bridge Fund $5 Million Local Program Fund $33 Million

MTF Balance Distributed Per Act 51: $2,171,000,000

STATE TRUCKLINE FUND $1,031,900,000

39.1% of MTF Balance $958.8 million

MTF Balance Distributed Per Act 51 $2,452,200,000

$2,171 mil + $131 mil (3 cents of Gas Tax) + $150 mil (income tax earmark) CITIES AND VILLAGES $546,400,000

21.8% of MTF Balance $534.6 million $21.2 mil

Additional funds: from the Local Program Fund

$11.8 mil

Additional funds: from the Local Program Fund

$73.1 mil

Additional funds: $23.1 mil (from ½ cent gas tax) $50.0 mil (Debt Service)

COUNTY ROAD COMMISSIONS $980,000,000

39.1% of MTF Balance $958.8 million

39.1% County Distribution “Internal Formula” $980,000,000 Snow Fund Transfers Licensed P.E. 10% Urban Factor Urban Primary Urban Local 4% Local Road Factor Remainder – Approximately 85% $833,000,000 25% Local Roads 75% Primary Roads Primary Road Fund

15% Equal Share 75%

• Veh. Reg. Tax

10% Primary Mileage 35%

• Twp. Population

65% Local Mileage

Local Road Fund

Vehicle User Fees Paid Per Year

• Fuel Tax Paid Per Year: $263
• Gallons of Fuel Used Per Year

Average Driver: 20,000 mi/yr 20 mi/gal (20,000 mi/yr) / (20 mi/gal) = 1,000 gal/yr

• Michigan Gas Tax: $0.263/gal

(1,000 gal/yr) x ($0.263/gal) = $263/yr

• Vehicle Registration Fees: $237

Average Vehicle User Fees: $500/year

How Much of my $500 Goes to Local Roads

• Put the dollars though the Act 51 formula
• 20% comes off the top (80% left)

$500 x 80% = $400

• 3 Way Split (39.1% for Road Commissions)

$400 x 39.1% = $156

• 25% to Local Roads

$156 x 25% = $39/vehicle/year

Less than 8% of what is paid

MTF Funds spent on Local Roads in Raisin Township

• $150,000 average over last 3 years
• Maintenance Only
• Matching Program (Started in 2019)
• $34,706 Raisin Twp ($540,000 Countywide)
• $64,270 Raisin Twp (FY 2021)
• 50% for Drainage Structures
• $18,795 Raisin Twp (2019)

Project Costs (per mile)

4” Limestone $ 50,000 Crackseal $ 10,000 Sealcoat $ 20,000 Wedge & Sealcoat $ 30,000 Underseal & 1.75” HMA Overlay $ 120,000 3” HMA Overlay $ 200,000 Base Stabilization and 3.5” HMA $ 400,000 Reconstruction $ 600,000

Road Improvements – Cost per Year

Use Life Cycle Cost to Determine Annual Cost

• Paved Roads (50.1 mi) – 20 year life cycle
• Gravel Roads (17.0 mi) – 20 year life cycle
• Bridges (4) – 60 year life cycle
• Culverts (22) – 30 year life cycle

Road Improvements – Cost per Year

Paved Roads ($200,000/20 years = $10,000/mi/yr)

Year Work Type Cost per Mile 1 Underseal & HMA Overlay $120,000 3 Crackseal $ 10,000 6 Crackseal $ 10,000 7 Sealcoat $ 20,000 10 Crackseal $ 10,000 14 Sealcoat $ 20,000 17 Crackseal $ 10,000 20 (Start Process Over)

Road Improvements – Cost per Year

Gravel Roads ($80,000/20 years = $4,000/mi/yr)

Year Work Type Cost per Mile 1 4” Limestone $50,000 10 2” Limestone $30,000 20 (Start Process Over)

Road Improvements – Cost per Year

Raisin Township Local Roads

• Paved Roads

(50.1 mi) x ($10,000/mi) = $501,000/yr

• Gravel Roads

(17.0 mi) x ($4,000/mi) = $68,000/yr

• Bridges (4) = $10,000/yr
• Culverts (22) = $4,000/yr

Total Cost = $ 583,000 / year

Road Improvements – Cost per Year

Factors Not Included

• Reconstruction Cost of Paved Roadways

Additional $280,000/year

• Subdivision Roads

Mill and 2 lifts HMA (18.5 miles) Additional $135,000/year

Road Improvements – Cost per Year

Minimum Road Improvements per Year $ 583,000 Maximum Road Improvements per Year $ 863,000

Township Project Contribution History

5 year Average (2014 - 2018) Per Year = $ 401,735 2018 Contribution = $ 540,095

Condition of Raisin Township Local Roads

Comparison of 2014 to 2018

2014 67% Poor 2018 39% Poor

39% 26% 35%

Raisin Township - Local Roads 2018 Pavement Condition

Poor Fair Good

Raisin Township Roads

How good do you want your roads? Township Decision

Raisin Township Roads

• 1. Establish your own road budget
• 2. Decide the roads you want fixed
• 3. 100% of budget stays in the Twp

Lenawee County Road Commission & Raisin Township

A Partnership for Road Improvements