Streets continue to be a top priority for the City of Charlotte and the current City Council. At its July 11 meeting, council was presented with a new option in which the city could perform major road reconstruction on three streets that have been deemed to be of high public priority — West Lovett Street, State Street and Lincoln Street.
Charlotte Mayor Tim Lewis said he asked city administrators how the city could deal with the three streets he feels are priorities in a comprehensive way.
Charlotte City Manager Gregg Guetschow presented council an initial look into debt financing to provide the necessary funds required to complete road reconstruction on the three streets. In a memo to council members, Guetschow stated that DPW Director Amy Gilson estimates the projects would total $3.6 million — $2 million for State Street, $920,000 for Lincoln Street, and $710,000 for W. Lovett Street.
“If we were to fix every street in town, it is projected to cost $52 million, so we have a daunting task ahead of us,” Lewis said. “State, Lovett and Lincoln seem to have the roar of the community in terms of priorities.”
Lewis said the council will come to a conclusion over the course of the next few meetings as a team and lay out a plan moving forward.
In Guetshow’s memo, he outlines the potential costs associated with utilizing debt financing if the council were to choose to bond the entire $3.6 million. Guetschow stated the city expects to see an increase in state funding for roads by as much as $136,000 in the current fiscal year and growing to as much as $390,000 by 2021. The increase could provide the funding necessary to cover the annual cost of the bonds, which would be in the ballpark of $300,000 annually if the city were to secure $3.6 million at 4 percent interest for a 20-year term. Payments would be approximately $360,000 annually for $3.6 million at 3.5 percent interest for 15 years.
Guetschow cautioned council about relying on money from the state that has not yet received. He also said there are a number of other factors to consider, such as the county’s road millage.
“The people voted us on council to look at the options and come up with an effective program,” Lewis said. “We have to consider all options.”