Salem Streetlights: Solutions for a Sustainable System
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Date
2011-06
Authors
Landis, Joshua
Moore, Caroline
Mosley, Rachel
Ruderman, Chris
Skinner, Seth
Journal Title
Journal ISSN
Volume Title
Publisher
Department of Planning, Public Policy & Management, University of Oregon
Abstract
The City of Salem operates and maintains a complex and costly network of over 10,500
streetlights. This report examines several challenges within Salem’s current streetlighting system
and provides recommendations to enable the city to achieve a more sustainable operations
structure.
Three primary attributes affect the operational sustainability of streetlights in Salem: funding
sources, ownership arrangements, and energy efficiency. Funding is relevant because Salem,
ideally, would use funds from the state gasoline tax exclusively to finance required street
maintenance, and would draw revenue for streetlights from a difference source. At present,
Salem allocates approximately 20 percent of gas tax funds to pay for streetlights.
Simultaneously, Salem allocates roughly one million dollars annually from the city’s General
Fund to meet its needs for street maintenance. Secondly, ownership arrangements are relevant
because Salem has a unique streetlight ownership and maintenance structure that involves three
separate entities. Shared ownership constitutes a complicated system consisting of over 100
combinations of lights and ballasts. Without streamlined ownership, the city is unable to modify
maintenance costs or introduce technology to ensure least-cost streetlight operations.
Implementing energy efficient technology is a key opportunity for the city to reduce cost of
streetlighting. As part of the University of Oregon’s Sustainable City Year program, the Salem
Public Works Department commissioned students in a Master of Public Administration Capstone
course to investigate both fundraising and cost saving opportunities within this system.
The research team performed three analyses to identify the best means of reducing the burden of
streetlight operations and ownership. The principal analysis evaluated the city’s many options for
raising streetlight revenue based on equity and cost. Two additional analyses determined the
financial implications of (1) the acquisition of streetlights owned by Salem Electric and Portland
General Electric and (2) investment in energy-saving technological upgrades.
Through the first analysis, the research team determined that Salem will likely experience
immediate stabilization of funding and increased funding by implementing a direct user fee. A
fee of this type presents the most favorable form of tax collection for an entity of Salem’s size,
taking into consideration cost of collection and residents’ ability to pay. Results of our secondary
financial modeling indicate that investment in LED upgrades and streetlight acquisition may
produce positive returns for the city, although Salem would not realize these benefits for many
years.
Based on the results of the analyses described above, the research team offers a three-tiered
policy recommendation to the city. First, we recommend that the city adopt a direct streetlighting
fee, levied as an electric utility pass-through. A fee of one dollar fifty cents per month per
address will fully fund Salem’s streetlight operations. In addition, this funding mechanism allows
the city to include an additional twenty-five cent fee per month for the creation of a streetlight
improvement fund.
After the implementation of a direct streetlight fee, the research team recommends that the city
use revenue generated by the suggested capital improvement fee to purchase the Salem Option A
segment of streetlights. In addition, the team recommends that Salem table the option to upgrade
PGE Option C lights to LED technology.
Description
Examining committee: Colleen Chrisinger, faculty advisor
Keywords
Street lighting -- Oregon -- Salem, Streetlights