Our View: Ways To Pay For Street Paving

Dorchester has a lot going on right now.  But there's still a large number of Dorchester residents who want village leaders to consider a plan to pave Dorchester's streets -- even if it's only a limited paving strategy, including finishing 11th Street.

Critics to street paving have often asked: How do you propose we pay for such an undertaking?

Well, the Times staff are firm believers that with newly paved streets (in certain areas -- not every street) will come new home construction, more home improvements and increased property values -- meaning more city revenue. (Other benefits would be better air quality, less money spent on gravel and labor, a renewal of community pride, and a better quality of life in general.)

The Times decided to explore the methods of revenue collection used by other communities currently paying for new paving projects. We found a variety of approaches.  They include:

• IMPACT FEES ON BLIGHTED PROPERTIES: The City of Lincoln, for example, relies heavily upon "impact fees" that are applied to new homes built in the city's outer limits. One member of the Times staff adamantly suggested stiff "impact fees" on condemned or vacant properties (commercial and residential) and properties whose owners won't obey the village's clean-up orders.  Not a bad idea.

• FEES ON NEW SEWER/WATER HOOK-UPS: Smaller communities with populations more similar to Dorchester also impose impact fees. Ceresco has a water and sewer development fee of $2,250 per lot. Malcolm has a tap fee for sewer and water of $250 per lot, plus a sewer and water fee of $2,250 per lot. These fees are used, at least in part, for road improvements.

• EARMARK A PERCENTAGE OF CURRENT REVENUES: The Village Board could set aside 5, 10 or 15% of current utility revenues or keno profits, earmarked specifically for paving streets. 

• BONDING:  Since Dorchester doesn't have a boom in new home building -- not yet, anyway -- the village would likely need to utilize a bonding program.  Many communities that take on new paving projects have residents vote on a bond issue, typically paid for by an increase in property tax, which is never too popular but might be acceptable for paving.

• LOCAL OPTION SALES TAX:  Dorchester could impose up to a two-cent sales tax on goods sold in the confines of the village, with the revenue being dedicated to paving. Such a tax would need to get voter approval first under the state's LB840 program.  This seems like a sensible route.

• GET CREATIVE:  There are some more creative and affordable ways of accomplishing the paving mission. Some communities hold special fundraising drives to offset the overall cost. One community even found "sponsors" who donated substantial sums and renamed streets after the largest donors.  In Washington state, one small community recently paved all of its streets thanks to a donated labor and machinery from a heavy equipment operation school.

To make paving -- even partial paving a reality -- residents of Dorchester are going to have to start taking their case to village board officials.  It's obvious nothing will get done until that happens.  (For the next town board meeting date, click here.)