11 Nov Harlingen Looks at City Funds and Reduced Paving as Asphalt Costs Exceed Expectations

Harlingen could scale back its annual street paving program or draw up to $1.2 million from city funds after bids showed higher asphalt costs, according to the Valley Morning Star.

A prolonged stretch of elevated oil prices due to the Iran war has pushed up paving costs across the country given a crude oil derivative is used as the binder or “glue” in asphalt paving mix.

City Engineer Robert Hernandez told commissioners that bids priced asphalt at $82 per ton, compared with $72 last year. The city manager said the program began with a $3.3 million budget. In July, commissioners signed off on resurfacing 14.9 miles of streets across the city’s five districts. Crews employed by the city covered roughly 12.5 miles last year at a cost near $2.5 million.

One option under discussion would take $600,000 from the city’s new $72 million general fund budget and add $600,000 left over in the street maintenance account, while trimming the amount of paving.

Mayor Norma Sepulveda said streets matter to the community and encouraged commissioners to look over their districts’ plans and make a fiscally prudent choice. She and Commissioner Daniel Lopez wanted to know whether staff had gathered ballpark asphalt costs before the July approval. Hernandez said staff had prepared a conservative estimate, but the bids landed well above last year’s prices. “The price of asphalt has been going up every year,” the city manager said.

Commissioner Michael Mezmar said the city should plan for higher inflation, warning that rising costs leave two choices: paving fewer roads or raising taxes.

The mayor said Harlingen is still saving money by cutting contractor fees, and officials set up an in-house paving crew within public works about two years ago.