Fresno will take on $100 million in debt over the next three decades to pave roads in the immediate future and make other infrastructure improvements.
The Fresno City Council unanimously approved a resolution on Tuesday declaring its official intent to take out a bond to fix the city’s immediate road needs.
The backstory: Mayor Jerry Dyer pitched the $100 million bond to the city council earlier this month, calling it his “Pave Now, Pay later” plan.
- His administration said at the time that the city’s deferred maintenance on its streets ballooned from around $500 million a few years ago to $1.2 billion.
- While the plan will saddle the city with debt, Dyer told the council that paving now would ultimately cut costs in the future, in part because of the increase in the cost of construction.
The big picture: Tuesday’s resolution states that the city expects to take on $75 million to $150 million in debt.
- Dyer said the city plans to take out $100 million in bonds that will be paid over 30 years, with the first payment made in June 2029, which will be after his term as mayor is up.
- The bond will include $75 million solely for road paving, which will be divided equally between the seven city council districts.
- The remaining $25 million will be flexible to allow each councilmember to cover other infrastructure in their districts, if they want to use the funding on projects besides paving.
- Dyer said the $100 million will be spent over the next two years.
What he’s saying: “This is historic in our city to be able to spend $100 million over the next two years on street paving and neighborhood infrastructure,” Dyer said. “It will go a long way in not only taking care of our deferred maintenance, but allowing those people in those neighborhoods to have a lot more pride.”
