Estimated Road Repair & Maintenance Costs per Road Committee

REPORT TO THE COMMUNITY ON ESTIMATED ROAD REPAIR AND MAINTENANCE COSTS

The Roads Committee has recommended to the board an annual assessment of $400.00 to maintain the roads into the future to the level that, based on the survey, meets the desires of the community. This amount equates to annual road repairs and two layer tar and chips every three years plus road maintenance during the interim. This figure would allow a sufficient amount of money to be collected for the first two layer tar and chip to occur in 2010. To ensure that the roads will not deteriorate between now and then we recommend that a special assessment for the year 2007 be collected for $400.00. This will allow the community to repair the roads and contract for a single layer tar and chip this year, when coupled with moneys from the current treasury. ($20,000 for repairs and $40,000 for tar and chip) These figures do not account for repair or replacement of the guardrails on Bethel Road.

Detailed Cost Estimates for 3 year cycle starting CY07 to CY10

CY07
Repair & Maintenance prior to Tar & Chip $20,000 Historical Est
(This money would come from existing funds)
Single layer Tar & Chip $36,500 Jun 06 Est
(This money would come from CY07 Special assessment of $400)
(We anticipate an increase in cost from the June 2006 Estimate)
CY08
Maintenance First Year $5,000 Historical Est

CY09
Maintenance Second Year $10,000 Historical Est

CY10
Repair prior to Tar and Chip $25,000 Historical Est
Double layer Tar and Chip $81,000 Jun 06 Est +10%
(We anticipate an increase in cost from the June 2006 Estimate of $73,600)

Total………………………………………………………………….. $177,500

Minus CY07 costs(-$56,500) $121,000

Divided by 3 years $40,333

Divided by 100 properties …………………………………… $403.33 Rounded to $400


In addition, we recommend that the board determine how much of the current HOA fees are needed to sustain the needs of the community and add that number to the $400.00 for a final figure. An example: if the board determines that it can operate on $100.00 per property minus road maintenance and repair (pay for electrical expense, snow removal, postage and other expenses) then add that number to the $400.00 for a HOA fee of $500.00. We do not recommend that the board add the current $225.00 fee to the $400.00.

This in no way should stop the great work that has been accomplished to date to find ways to reduce the burden of maintaining the roads on the community. We specifically believe that the possibility of the county or the state taking responsibility for Bethel Road shows great merit and should be pursued.

Respectfully,

Mark Bonner Jim Armstrong Dave Watjen