Oakland’s streets are in a state of disrepair, with worsening conditions reported across the city.
Recent statements from city staff reveal that no new paving contracts have been issued in nearly three months, primarily due to a funding pause.
During a recent City Council meeting, OakDOT Director Josh Rowan noted that the city anticipated selling up to $55 million in Measure U bonds to finance paving projects.
However, this plan was halted as city leaders implemented a contingency budget starting in September 2024, resulting in a significant reduction of available funds for road repairs.
Currently, the city lacks financial resources to initiate new roadway contracts beyond already underway projects.
In his report, Rowan stated, “Until a new bond sale of Measure U is completed, OakDOT cannot initiate new contract paving projects and is in danger of delaying grant-funded, shovel-ready streetscape projects.”
Previously, the city had successfully sold a smaller tranche of Measure U bonds for housing in 2023.
The anticipated upcoming bond sales were designed to provide substantial funding for both transportation and housing development departments.
OakDOT is now unable to hire new staff or establish partnerships with utilities like PG&E that would help offset paving costs—and crucial street safety initiatives may also suffer delays.
Without the bond sales, the city’s capacity to pave is poised to dramatically decrease, with projections for the fiscal year ending in June 2026 indicating that only eight miles of road may be resurfaced, representing a decade low.
This significant reduction is strikingly contrasted with more than 25 to 30 miles expected to be paved in the current fiscal year, albeit only half of last year’s output, much of which comes from ongoing construction contracts from 2024.
Rowan estimates that roughly $143.7 million is necessary to address Oakland’s pressing infrastructure needs—of which approximately $91 million is allocated specifically for street resurfacing, along with $25 million aimed at matching grants for essential projects, and another $20 million designated for sidewalk and curb ramp repairs.
Over the past few years, the transportation department has boasted some of the city’s largest budgets, nearing $80 million primarily sourced from bond sales and grants.
Next year, however, Rowan indicates that the available budget may dwindle to $30 million without new bond revenues.
Measure U bonds serve as general obligation bonds—forms of local government bonds allowing municipalities to fund large projects by selling bonds to investors—later repaid through a unique property tax tailored by Measure U and differing from standard residential property taxes.
The implications of delaying bond sales aren’t confined to infrastructure improvements.
Housing projects within Oakland’s strategy have also been jeopardized, with many affordable housing projects, already funded early this year, at risk of losing state and federal tax credits in the absence of bond funding.
Among these projects are significant developments like the Mandela Station project in District 3 and the Unity Council initiative in District 5, both essential for creating over 300 housing units, including provisions for homeless and special needs residents.
As Jeff Levin, policy director for the East Bay Housing Organizations, articulated at a recent Oakland Redevelopment Successor Agency meeting, the failure to fund these initiatives could yield detrimental long-term consequences for affordable housing developers tasked with addressing Oakland’s housing crisis.
For a decade, local government bonds, chiefly Measure KK, have been crucial for infrastructure work, enabling the city to invest about $350 million over the last ten years to tackle potholes, establish new crosswalks and sidewalks, and redo vital arterial roads.
Furthermore, OakDOT has leveraged that bond capital to secure competitive grants, with the assistant director, Jamie Parks, revealing in a last week’s council meeting that around $300 million in grants has been received over the past five years.
Previously, Rowan had indicated that efforts were underway to secure funding for paving projects, including the postponement of some initiatives to stretch existing resources.
At that time, he expressed hope that new bonds would be issued by spring, utilizing Measure U, which voters approved in November 2022.
The total funds available for transportation projects through Measure U are $290 million.
However, city officials from the finance department have refrained from pursuing bond sales, citing cautiousness about economic conditions.
As the city approaches the end of spring, frustrations are rising, with no bond sales in sight.
Due to the funding hiatus, significant projects, including the Lake Merritt Complete Streets Project and the High Street Improvement Project, valued at approximately $20 million are currently stalled.
Parks confirmed that while the department’s larger capital projects have thus far remained unaffected, there exists a looming risk that without funding by July, delays may impact previously funded projects.
Recently, City Administrator Jestin Johnson submitted an informational report to the City Council outlining projections regarding potential bond sales.
Johnson mentioned that the city’s “optimal timing” to sell these bonds is forecasted for January 2026, following the conclusion and release of the FY 2024-25 annual comprehensive financial report.
However, he noted that an earlier issuance in October or November 2025 might be warranted given urgent capital needs.
To initiate the bond process, an essential assessment of the city’s fiscal health—including debts, salaries, and budgets—must be accurately conveyed.
This has been complicated by recent downgrades in the city’s credit rating, with major credit agencies such as Moody’s, Standard & Poor’s, and Fitch implementing slight downgrades and rendering negative outlooks.
Standard & Poor’s evaluation in February highlighted significant structural imbalances that may exacerbate future budget challenges through 2026 and beyond.
According to Johnson’s report, finance staff is collaborating with various departments to establish a timeline for the city’s bond issuance.
As part of this effort, a “bond council” will be formed to scrutinize the decision-making process within the finance department, with inaugural meetings slated to commence in May.
During last week’s meeting, District 1 Councilmember Zac Unger lamented the finance department’s decision to abstain from bond sales in 2024, citing that concerns over the city’s budget persisted despite improved ratings for much of the year.
“Had we sold bonds six months ago,” Unger asserted, “that would’ve been before one of our downgrades and before Washington threw our sort of international financial system into chaos.”
He urged a swift move towards bond sales to address the critical infrastructure issues facing the city.
OakDOT civil engineer Chase Fowler also expressed frustrations, stating during the meeting, “There’s no reason the finance department should not have moved forward with bond sales months ago.
They’re not stressing the budget in any way; they alleviate pressure on our general fund.”
This string of challenges illustrates the complex web of funding, infrastructure, and governance amid Oakland’s pressing municipal issues.
image source from：https://oaklandside.org/2025/04/25/as-the-city-waits-for-bond-sale-more-and-more-of-oaklands-streets-are-going-unpaved/
