1. CITY OF FLAGSTAFF – PROP. 406 ROAD REPAIR AND STREET SAFETY 1

2.  Streets are a Core City Service  Streets are important for our City and our regional economy  Good roads help people get to work on time  Good roads help kids get to school safely  Safe roads help people get to where they need to go  Bad roads cost you money each year ROAD REPAIR AND STREET SAFETY 2

3. November 2014, Flagstaff voters will decide on the 1/3 cent sales tax increase to fund:  Road repairs to existing City streets  Road reconstruction  Resurfacing (surface overlays)  Ongoing surface treatments  Street pavement condition  Pedestrian/bicycle safety  Repairs to underlying water/sewer utility infrastructure 3 ROAD REPAIR AND STREET SAFETY TAX INFORMATION

4.  No inflation adjustments to gas tax  No percentage of total average price per gallon  Decreased revenues due to more efficient vehicles  HURF sweeps  Increase in road use  Increase in road miles to maintain  Increase in maintenance costs ROAD REPAIR AND STREET SAFETY CURRENT CONDITIONS 4

5. TRANSPORTATION TRENDS (LOCAL, STATE AND FEDERAL) Road Repair and Street Safety Initiative – Citizen Committee

6. City Gas Tax Revenues Inflation Adjusted Revenue Revenue Uncollected FY 14 Projected5,956,0008,040,0002,084,000 What if Gas Tax was adjusted for inflation? What if the Gas Tax was a % Per Gallon vs. Flat Rate? Gas Price and Revenue Generated 1991Average Price $1.25/gallon /$0.18 tax 2013Average Price $3.40/gallon /$0.49 tax 2013 Revenue based on % of Each Gallon$10,974,000 6 THE COMING INFRASTRUCTURE CLIFF

7.  Over 660 lane miles of roads  34% increase in last 15 years 7 ROAD REPAIR AND STREET SAFETY

8.  Council Goal: “Repair, Replace and Maintain Infrastructure” (Streets and Utilities)  Cost cutting efforts since 2009  2010 Street and Utility Bond  Increased pavement funding in FY14  Council Budget Priority for FY15  City Legislative Priority to address fund sweeps ROAD REPAIR AND STREET SAFETY BEFORE GOING TO VOTERS 8

9.  As the street conditions deteriorate  travel becomes less safe  the cost to repair and restore increases  If repairs are delayed by 10 years the cost will increase an estimated 60% due to further deterioration. ROAD REPAIR AND STREET SAFETY CURRENT CONDITIONS 4

10. ROAD REPAIR AND STREET SAFETY THE COST OF WAITING 10

11. Projected Current5 Year10 Year Average Cost to Target5 Year10 YearUpgrade to Condition Target ASSET (Current)Rating Condition Streets - OCI < 4070 +18.5-6.5$11,900,000$33,400,000$48,800,000 Streets - OCI = 40-5070 +31.911.9$5,800,000$4,100,000$1,600,000 Streets - OCI = 50-6070 +43.727.7$5,800,000$1,800,000$3,300,000 Streets - OCI = 60-7070 +56.544.5$13,600,000$17,700,000$14,400,000 Streets - OCI = 70-8070 +67.157.1$3,100,000 $3,800,000 Streets - OCI = 80-9080 +77.769.7$3,600,000$3,800,000$1,400,000 Streets - OCI = 90-10090 +87.280.2$3,100,000$1,500,000$2,100,000 TOTALS$47,000,000$65,000,000$75,000,000 11 + Additional $2M/year

12. ROAD REPAIR AND STREET SAFETY THE COST OF WAITING Pavement Condition Rating Pavement Grade % of Road Miles in 2013 % of Road Miles 10 years with Existing Funding 0 – 59F15%47% 60 – 69D16%15% 70 – 79C22%27% 80 – 89B24%9% 90 – 100A23%0%

13. The City Council sought solutions to growing backlog of needed road repairs and safety improvements. Feedback:  Citizen Review Committee  Transportation Commission  Citizen Survey  Focus Groups and Polling  Coordination with County 13 ROAD REPAIR AND STREET SAFETY COMMUNITY RECOMMENDATION

14. 43 Committee Members:  Scott Baugh  Rich Bowen  Kiwon Choi  Guillermo Cortes  Eck Doerry  Deborah Harris  Jacquie Kellog  Aaron Kotzin  Shari Miller  Kevin Parkes  Minesh Patel  Steve Peru  Eve Ross  John Tannous  Jack Welch  Nat White  Don Walters ROAD REPAIR AND STREET SAFETY CITIZEN REVIEW COMMITTEE

15. November 2014, Flagstaff voters will decide on the 1/3 cent sales tax increase to fund:  Road repairs to existing City streets  Road reconstruction  Resurfacing (surface overlays)  Ongoing surface treatments  Street pavement condition  Pedestrian/bicycle safety  Repairs to underlying water/sewer utility infrastructure 3 ROAD REPAIR AND STREET SAFETY TAX INFORMATION

16. RATE: One-third of one cent or 33 cents on a $100 purchase TERM: 20 years REVENUE: $5.3 million a year and $106 million over 20 years BONDING: Some borrowing to “fast-track” repairs ROAD REPAIR AND STREET SAFETY TAX INFORMATION

17. ROAD REPAIR AND STREET SAFETY SALES TAX - PROPOSED 17 Combined Sales Tax Rates State Sales Tax: Education, Public Safety, Prisons, Healthcare, etc.5.60% County Sales Tax: Law Enforcement, Courts, Parks and Rec, etc.1.00%* City Sales Tax: Police, Fire, Parks, Transportation, Transit, etc.1.721% Current Retail: 8.321%* Road Repair and Street Safety TaxProposed: 0.33% Proposed Retail: 8.651% 8.951% including proposed County Road Tax * County CPOST 0.125% Tax Expired October 2014

18. The City’s question will be near the end of the statewide ballot Important Dates Last day to Register: October 6th Early Voting begins: October 9th Last day to request early ballot: October 24th Last day to vote early in person: October 31st General Election: November 4th WWW.FLAGSTAFF.AZ.GOV/ROADSAFETY 18

19. Public Open Houses 5:30pm – 7:30pm  September 25 th at Elks Lodge  October 1 st at Killip School  October 9 th at Sinagua Middle School  October 13 th at Sechrist School  October 23 rd at Thomas School  October 29 th at Mountain School WWW.FLAGSTAFF.AZ.GOV/ROADSAFETY 19

21. 1.Good roads are critical to Flagstaff's basic economy. Roads move goods, services and people. 2.The current road funding system is broken at the State and Federal level. The City continues to lobby the State for change. 3.The City has continued to cut costs, prioritized local funding, but it isn’t enough. 4.The longer we wait the worse our roads get and the more they cost to repair. 5.The City asked the public what they think we should do. 6.With fast action and smart prioritization, a 1/3 cent tax can stop the bleeding and get our roads back in shape before things get worse and cost us all more. – Vote your opinion in November on City Proposition 406. ROAD REPAIR AND STREET SAFETY 6 THINGS TO KNOW ABOUT PROP. 406