Mill Valley fine-tunes paving plans for tax vote

Mill Valley needs to extend its $276-per-parcel municipal service tax for another decade to finish upgrading its roads, according to a city-appointed panel.

At that point, after spending $40 million from the tax and other revenues, the city’s roads will be in top shape and generate lower maintenance costs.

“Those are pretty good projections and you can pretty much hang your hat on that,” said John Ririe, the city’s paving consultant.

The comments came during a municipal service tax study committee meeting Monday that reviewed long-term road plans and revenue streams.

The City Council created the committee to fine-tune its plans in anticipation of seeking voter approval to extend the tax next fall.

The municipal service tax was adopted 40 years ago and has been renewed every 10 years. The parcel tax increases 2% a year and now generates $2 million a year for roads and related vegetation management for fire protection and emergency vehicles. The city also relies on dedicated transit funds from the state and county, such as gas tax revenues.

Mill Valley has some of the county’s highest quality roads. Its “pavement condition index” is 79 out of a possible 100.

But 4 miles of its 61 miles of centerline roads in outlying areas “are in the 0-30 PCI failed range,” according to a staff report. The treatment cost is $9.2 million.

While city officials have anticipated placing a decade-long extension of the municipal service tax on the November ballot, the study committee — which includes several former mayors — was asked by the council to review and adjust the paving strategy to present the strongest case to voters.

John McCauley, vice chair of the committee, asked city staff if the municipal service tax could eventually sunset.

“The question is, if we go another 10 years roughly, and we put the MST in and be very rigorous and continue to be very smart about how we spend, is there a time in our future where we can use other sources of revenue?” said McCauley, a former mayor. “Is it in the range of truth to say look we’ve been going uphill for 20 or 30 years now, we’ve been trying to climb the mountain, we’re almost at the top of that mountain?”

City officials gave a qualified yes, if the repairs needed now are front-loaded, no natural disasters occur.

Ririe said the long-term goal is getting the city pavement index to 85, as all roads deteriorate over time. The best way to do that is to address needed repairs sooner rather than waiting, he said. The city spends about $3 million annually on roads.

Ririe and Andrew Poster, the public works director, suggested spending $40 million over the next decade, most of it during the next five years.

“Five million times five years, $25 million, and then the other years you need $2.7 million for five years, $14 million,” said Councilmember Urban Carmel, committee liaison. “That gets you to that steady state … from that point on, you still need $2.7 million (annually) adjusted for inflation.”

City Manager Todd Cusimano said his budget projections could handle that because the city is reducing other long-term debt such as pension obligations.

The committee did not vote on any recommendations but endorsed using 20% of municipal service tax revenue for vegetation management. The panel reconvenes on Tuesday.