Road Construction

 

Local Street Construction and Repair

Local road improvements are mainly funded using Act 51 funds which are generated mainly from gas taxes. Contrary to popular belief, property taxes are not used to improve or repair Local streets. For Local streets, the City is limited to approximately 25 percent of its available Act 51 monies which fund many annual maintenance programs including, snow plowing and salting, sweeping and cleaning, storm sewer maintenance, targeted concrete patch/repair programs, and the City’s portion of Special Assessment street paving. An unimproved roadway is required to be funded initially through a Special Assessment on the adjacent property Owners, however the City is obligated to participate for certain portions of paving and drainage according to City Charter. The City has also been fortunate to obtain Block Grant awards to repair or improve roadways within the designated Block Grant areas. Local street funds however are very limited. Roughly $300K is available to be budgeted annually for construction and repair maintenance on local streets. For more information refer to the City Finance Department’s Annual Budget.

Major Road Construction and Repair

Major road improvements are mainly funded using Act 51 funds which are also generated mainly from gas taxes. Property taxes are not used to improve or repair Major roads in Royal Oak. The City has been fortunate to obtain regular Federal Grant awards to repair or improve major roadways such as Main Street, S. Washington Avenue, Lincoln Avenue, Crooks Road, and 12 Mile Road. The City utilizes its Major road funds to leverage and provide required match dollars for obtaining the Federal Grants. For Major roads, the City is limited to approximately 75 percent of its available Act 51 monies which fund many annual maintenance programs on Major roads including road construction and rehabilitation, snow plowing and salting, sweeping and cleaning, storm sewer maintenance. Roughly $1.3M is available to be budgeted annually for construction and repair maintenance on Major roads. For more information refer to the City Finance Department’s Annual Budget.

 

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