1. We maintain streets with half the materials budget that we in had 2003. Due to inflation, today's dollar buys only half the materials it did in 2003. Therefore, today's street materials budget allows for only one quarter of the maintenance of 2003 ! Inflation vs. Street Maintenance Materials Budget

2. First Response Options: CAR TAB Estimated 2018 PCI (2011 PCI = 68) DESCRIPTION $054 ( same PCI as the ‘do-nothing’ option ) PCI: 55-65 = ‘Fair’ 45-55 = ‘Marginal’ Continue to optimize available resources.  Utilize pothole trailer. Refurbished aggregate spreader. Upgrade loader to larger unit. Evaluate new options like 2 nd mini excavator w/ hammer & trailer.  Postpone equipment replacements; divert savings to increase mat’ls by 5-6%.  Hire two summer help. Reduce sweeper support during paving season.  Rent high performance grinder. $1056 - 57 25% reduction in deterioration rate Sustain above strategy. Double output for asphalt, concrete, & chip seal.  Two “new” FTE’s (1 was cut in 2011-12 biennium). Hire five seasonal help.  Double material budget (triple crack sealant budget). $2059 - 60 50% reduction in deterioration rate Sustain above strategy. Triple street maintenance.  Triple materials.  Better treat gravel alleys, &/or help secure funding for street infrastructure: the bridges, the backlog, & big repairs (e.g. 15 th Ave, WA. Way).  Phase-in purchases of grinder (Asphalt Zipper), paver box, & larger roller.

3. Street Maintenance Strategy TreatmentType 2011 Maintenance TargetNeed $20 Tabs Provide Grind & OverlayACP 0.05% of worn, damaged ACP 5 - 10%>100x3x Remove/ReplacePCC 2.5% of damaged PCC 2.5 - 10%0 - 4x2x Chip SealACP 4.3% of eligible network (best 40% of ACP network) 10 - 20%2 - 5x3x Crack SealingBoth 5.6% of network 25 - 50%5 - 9x4x $20 car tabs should cut rate of deterioration in half and provide time for a sustainable solution to be developed & implemented.

4. Additional Funding Potential Funding Sources Levy Lid Lift – General Fund [Voter Approved] City-wide A.V. = $2,703,686,847 Current Levy Rate = $3.1141 per $1000 Available Levy Capacity = $0.4859 Available Funding = $1.3 Million One Year or Multi-Year Lift Funding varies with A.V. Leaves no capacity for other needs M & O Levy – General Fund [Voter Approved] No limit to levy One Year only Levy Rate at $0.20/$1000 = $541,000 County-wide Fuel Tax [Voter Approved] Up to 3.75 cents per gallon 1% Dept. of Revenue fee No votes have been successful General Obligation Bonds Not advisable to bond maintenance.

5. Additional Funding Potential Funding Sources Street Utility [Council Approved] State Supreme Court declared unconstitutional Street Maintenance Utility [Council Approved] Proposed to replace Street Utility Supported by AWC and various cities Stuck in Legislature last 3 sessions Federal STP – U [Surface Transportation Program – Urban] Regional selection of projects Program focus is network expansion and improvement Pavement rehab projects not likely to be selected Local Improvement District [Petition or Council Approved] Not likely to meet requirement of increased property value

6. TBD Option Vehicle License Renewal Fee [Council or Voter Approved] Up to $20/vehicle/year (Council Approved) Up to $100/vehicle/year (Voter Approved) Fee increase subject to voter approval As of Oct. 2011: 28,000 vehicles eligible $20 fee = $ 560,000 $100 fee = $2,800,000 1% Dept of Licensing fee Sales and Use Tax [Voter Approved] Up to 0.2% TBD rate at 0.2% = $1.24 million Expires in 10 years; Renewable Other options allowed by TBD  Local Improvement District  Vehicle Tolls  Bonds  M & O Property Tax Levy  Development Fees Additional Funding Transportation Benefit District (TBD)

7. Transportation Benefit District (TBD)  Council approves District. Council serves as District Board. Requires annual reporting and transportation plan.  WA has 37 TBD’s (35 formed since 2008)  Vehicle license fee – 20 TBDs; 19 at $20; 1 at $10 All were Council-approved  Sales Tax – 11 TBDs; 10 at 0.2% rate; 1 at 0.1% rate  Bond – 1 TBD (Auburn for $59M)  Others (5) – 2 formed since 11/30/11 with no fee yet; 3 unclear  Vehicles exempt from license fee  > 6,000 lbs curb weight  Off-road; farm; snowmobiles; mopeds, truck campers  Private use single axle trailer < 2,000 lbs curb weight