The City of Santa Fe is reporting that roadway projects funded through a 2024 General Obligation bond will cost more than originally budgeted, with inflation and deteriorated road conditions requiring scope changes.
The 2024 bond authorized $25 million for approximately 50 roadway projects, with a goal of completing 85 percent by 2028. However, updated construction costs indicate the original authorization will be insufficient for the full project list.
Three factors contributed to higher costs, according to the Public Works Department: construction cost escalation of approximately 20 percent from the city's competitive rebid of its roadway and trails on-call contract; continued roadway deterioration requiring more extensive rehabilitation than originally anticipated; and refined project scopes that identified additional work including concrete replacement, sidewalk improvements and accessibility requirements.
Two completed projects demonstrate the impact. Airport Road, originally estimated at $3.08 million, cost approximately $5.5 million. Jaguar Drive, originally estimated at $430,000, cost $1.47 million after scope changes to rebuild ADA-accessible ramps were identified.
The city is working to improve its cost estimates and provide residents with better information about infrastructure needs. The Public Works Department is proposing a data-driven approach to future street management, including a $500,000 citywide pavement condition assessment and a $2 million roadway preservation program for FY27.