Palm Bay Road Bond Paving Program Faces Shortfall Amid Progress and Challenges

Written by-Iulia Lupse, staff writer

In November 2018, Palm Bay’s residents approved a $150 million road repair referendum, financed by property taxes over a 20-year span. This project promised a transformative 8-year, five-phase overhaul of the city’s infrastructure. As the city has already deployed the entire bond amount in three rounds, questions about the program’s financial management have started to surface. Palm Bay Live has contacted city officials for comments, but responses are still pending. Nevertheless, public records and city updates provide a glimpse of the program’s progress and its hurdles.

The City Manager’s office reports the awarding of at least 21 construction contracts across 33 separate units and areas and nine roads. A January 2024 update from Palm Bay City Council indicates that paving in Phase 1 units has been completed. Significant completed projects include Unit 41 and Eldron, Units 31 and 32, and Unit 42 and Garvey Road.

Despite this progress, a closer look at the program’s finances reveals a looming challenge. A November 2024 update indicates that projects completed or under contract have already amounted to more than $93 million, while future projects are estimated to exceed $126 million. The anticipated total cost for all the projects under the Road Bond Paving Program is projected to surpass $220 million. This reveals a shortfall of $70 million beyond the initial bond amount.

However, a financial review unveiled by the City Council in January unveiled additional details. The program has achieved a 51% completion rate by paving 404 miles out of the planned 791 miles. According to the latest update, the General Obligation (GO) Road Bond, realized through three separate draws, has amounted to $159 million with interest earnings as of November 2023, contributing to an additional $4 million, bringing the total funding available to $163 million. Projects completed or under contract are now reported at $94 million, leading to a new total estimated expenditure of $220 million. This reveals an updated estimated shortfall of $56 million.

Paving work for Phase 4 includes areas between I-95 and Minton Road, Jupiter Blvd NW and Pace Drive NW, and the area between Emerson Drive and Degroodt Rd SW. Phase 5 plans to target more units, including streets between Minton Rd, Emerson Drive, and Breakwater St SE, as well as streets south of Waco Blvd SE and north of Wyoming Drive SE, among others.

With paving fully completed in Phase 1, the challenges of financing these stages become clear. The January 2024 City Council update hints at inflation, increased material costs, and labor shortages affecting project costs. The city is exploring solutions to address the funding gap, including the adoption of new polymer micro-surfacing techniques awaiting approval from the Florida Department of Transportation (FDOT) and leveraging multi-year financing options along with identifying annual sources of recurring revenue. Other considerations include leveraging new General Fund revenues, exploring alternative funding sources like the Local Option Gas Tax and Discretionary Sales Surtax, and asking voters to support more funds through a new bond issuance.

Raising more funds through a new bond vote could directly impact Palm Bay residents through increased taxes. While this strategy aims to secure the necessary funds to complete the Road Bond Paving Program, it may result in higher property taxes or other financial obligations for the community. Such a move would require careful consideration and approval from residents. As Palm Bay navigates these financial hurdles, the road ahead for the Road Bond Paving Program remains uncertain. Palm Bay Live will continue to monitor developments closely, ready to update our readers as new information comes to light.