Public Works Budget Planners Wrestle With Future Costs of Commodities

City staff members have many numbers to plug in to a budget before presenting it to the City Council, but it's no surprise that the most challenging to project are the price of gas, the amount of salt to buy for the winter and what a contractor might charge to do a project.

Aldermen reviewed the Public Works portion of the Monday night, a plan that includes many best guesses about costs.

For example, about $300,000 is marked for the rehabilitation of concrete streets. Public Works Director Mike Hughes told aldermen that most of this money will be directed to streets in the northeast portion of the city. He cited Van Auken as a street that was in particular need of an upgrade, but how much of that street will be rehabbed depends on what contractors are charging for the work this year, he said.

have grant money attached to them. A plan to grind off the the top layer of York Road from Vallette Street to Robert Palmer Drive and overlay it with asphalt will be largely paid for with a federal grant, Hughes said.

As far as gasoline costs, aldermen asked Hughes if he needs to adjust the budget in light of the recent upswing in fuel costs. Hughes said the projected $370,000 in next year's budget is based on a 10-year average. Assistant Director of Finance Tom Trosien also reported that a revenue dip in the state Motor Fuel Tax Fund was due to a lower rate of gas consumption.

“The mayor's driving a hybrid,” Mayor Pete DiCianni said.

Also in flux is the cost of the Addison Avenue parking garage, part of the Hahn Street project near York Road and North Avenue. A previous plan for the area called for condominiums and retail space, but the downturn in the economy now has rental apartments and reduced retail space.

While $11 million is the placeholder amount in the 2012-2013 budget for the construction of the garage portion of the development, City Manager Jim Grabowski reminded aldermen that the project has yet to be finalized.

One commodity's excess could offset some of the uncertainty in other areas of the budget. Fifth Ward Alderman Chris Healy, a member of the Public Works and Buildings Committee, said the city has only purchased 2,300 of the 3,800 tons of road salt it is committed to buy this year as part of a state cooperative program. Barring a late winter storm, the city should start the next winter season with a salt surplus, he said.

Aldermen will continue to review the budget until early April, when the document is scheduled for adoption.