The biggest portion of Akron’s capital budget is going down the drain.
The city would spend nearly $59.3 million, or 31 percent of its proposed capital budget for 2012, on public utilities, with the bulk dedicated to sewer improvements.
That’s more than Akron would spend on any other category in the $193 million capital budget, including the Goodyear and Bridgestone projects, transportation, parks and recreation, housing and community services, and public facilities.
Much of the sewer money is slated for design work for future projects that will be much more costly than drawing up the plans, including $7 million to design a larger storage tunnel to run through downtown and $2 million for plans for a new Mud Run drainage basin.
“With what we’re looking at — what the EPA is forcing us to do — this will eat up a big chunk of our capital dollars over the next few years,” Public Service Director Rick Merolla said.
The city must make the upgrades to comply with a federal environmental lawsuit to fix its combined sewer/stormwater system to curb sewage overflows into local waterways. City officials have tried — and are still attempting — to get help from the federal or state governments to fund the project, but right now don’t have an option besides higher sewer fees. The city estimates the amount that will be spent on sewer upgrades will jump to $48.6 million next year and $70.8 million in 2014.
“We’ve got to figure out ways to fund this and pay back the loans,” said Akron Councilman Jeff Fusco, who chairs the Planning Committee that handles the capital budget.
Akron’s proposed budget is down from last year’s $262.4 million, mostly because it doesn’t include some of the more costly improvements for the Goodyear Tire & Rubber Co.’s new headquarters and Bridgestone Americas’ new technical center, such as a parking deck for Goodyear. These projects are being paid by multiple government and private entities.
The Akron City Council will conduct public hearings on the proposed budget at the Planning Committee, 2:30 p.m. Monday, and during the regular meeting, 7 p.m. Monday. The council is expected to vote on the budget the following Monday.
The Goodyear and Bridgestone projects, which were the biggest items in Akron’s capital budget last year, are the second largest this year, costing nearly $46 million.
Akron plans to spend nearly $4.2 million less on housing and community services this year, largely because of a significant reduction in federal funding. The city received $5.5 million in Community Development Block Grant (CDBG) funding this year, about 15 percent less than 2011. City officials had feared a reduction of as much as 30 percent.
Planning Director John Moore is hopeful that federal tax credits or grants will assist in the cost of demolishing some of Akron’s 2,400 vacant homes.
Moore said cities need to move quickly to right size their housing stock before the lending market improves. With $5 million over two years, Moore said he could “change the landscape of the city of Akron.”
Local funds make up the largest part of the capital budget, with 36 percent. The city’s charter requires that 27 percent of the income taxes be spent on capital projects and the rest go to operating expenses.
Here are some details on various capital projects:
Development
• Goodyear: Construction of Eagle Street and Seiberling Way, two new streets near the headquarters that is being built; repairs to the Englewood Avenue sewer; improvements to the Little Cuyahoga River and the river trail, decommissioning the former power plant, refurbishing a retention tank. Cost: $34 million from public agencies and a private developer.
• Bridgestone: Resurfacing Firestone Parkway from Wilbeth Road to Firestone Boulevard and installing new sidewalks, curbs, inlets and street lighting; acquisition of the former headquarters clubhouse; and acquisition and demolition in properties south and west of Main Street and Wilbeth Road. Cost: $12 million with funding from multiple government agencies.
Streets
• Interstate 76/Interstate 77 (Main Street/Broadway/Wolf Ledges Parkway): Design plans on how to reconfigure this section of freeway. The state, which has postponed construction of a larger project to improve this area, will hold a public meeting March 1 to discuss a plan to close a ramp from Wolf Ledges. (See related story for details.) Cost: $5.9 million in state funds.
• Massillon Road: Continuation of a project to resurface and improve the street from East Market Street to Penthley Avenue. Cost: $100,000 in Akron funds. City also is redoing the sanitary sewer on Massillon Road from Archwood Avenue to Springfield Lake Outlet, which will cost $606,000 in state funds.
Parks/recreation
• Summit Lake Eastside Recreation Area: Acquisition of vacant or blighted houses near Summit Lake to create a park area along the lake. Cost: $614,000 in federal and state funds. Akron also plans to spend $50,000 on improvements to Summit Lake Community Center.
• Northside Train Station connector: Connector bridge from the Ohio & Erie Canal Towpath Trail at the Beech Street trailhead to the train station. Cost: $908,000 in federal and Akron funds.
Stephanie Warsmith can be reached at 330-996-3705 or swarsmith@thebeaconjournal.com.