To the Citizens and our Customers,
The Medford Public Works Department provides transportation, sewer collection and storm drainage services to customers in Medford. The Department also provides sewage treatment for the region (of which the City of Medford is approximately half) and vehicle maintenance services to other departments and government organizations.
This report covers from July 1, 2015 to June 30, 2016, which is the City’s fiscal year. Total revenues increased 14% compared to the previous year, but total expenditures decreased 6%. Revenue and expenses vary in comparison to one another because the Public Works Department pays cash for virtually all capital projects, such as street construction. Some of these projects are very costly, so the Department builds cash reserves in some years so that projects do not require debt. This policy ensures that public infrastructure and services are delivered at the lowest life-cycle costs to Medford’s citizens.
The City has agreed to an Oregon Transportation Infrastructure Bank loan in the amount of $10 million to improve Foothills Road from Hillcrest to McAndrews. A $3 million dollar grant has also been approved for this project. The loan is consistent with the Department’s Lowest Life-Cycle Costs policy because the interest rate of 1.61% is below the anticipated 3% per year increase in the Construction Cost Index.
Public Works utility fee rate adjustments have been approved for the years 2015 – 2017. Utility fee adjustments take effect on July 15 in each of those years.
The Street utility fee has been adjusted to perform additional pavement maintenance each year. The goal of this expanded program is to restore pavement life at the same rate as street pavements deteriorate. The Pavement Management Analysis Report completed in 2011 establishes that $2.15 million per year needs to be invested in pavement maintenance each year to keep pavements in the same condition as they were in that year. The annual figure will change as the City continues to measure the condition of pavements. A new metric in the attached table is “Pavement Condition.” The City’s Pavement Condition has increased from 74 to 76 after additional investments in preservation have been made since 2011. The target Pavement Condition to achieve the lowest life-cycle cost is 75. It is anticipated that pavement preservation activity in the next budget will be reduced by federal requirements for Americans with Disability ramps at corners and the City accepting financial responsibility for significant sidewalk repairs.
Medford is a great place to be a consumer and provider of Public Works services. Your Public Works Department will continue to improve the infrastructure and services you use every day.
See 2016 statistics
Sincerely - Cory Crebbin, P.E., Director of Public Works