Livermore Would Need $3B To Replace Aging Infrastructure

LIVERMORE, CA — Livermore is financially stable overall, but the city would need $3 billion to replace infrastructure, according to a financial report presented last week to the city council.

Infrastructural maintenance and repair is the most costly unaddressed financial burden facing the city, said Livermore Administrative Services Director Douglas Alessio in a letter to the council. Livermore, like many government agencies, is underfunding infrastructure maintenance by several million dollars each year, he wrote.

Costs associated with infrastructural maintenance are often on the chopping block when government agencies are looking to prioritize costs and save money in the budget.

Livermore has sought to contain costs by saving during a strong economy so that the city could buy needed resources during an economic downturn and take advantage of lower prices, according to the report.

The city's savings for infrastructure is nowhere near the $3 billion needed, which includes $2 billion for general government infrastructure and another $1 billion for infrastructure maintained by enterprise funds, according to the report.

Over the years, Livermore has saved up $10 million for infrastructure maintenance by socking away $2 million from its general fund each year.

The city is in the midst of creating an infrastructure repair and replacement plan to ensure adequate resources are available in the future, according to the report.

The report cited pension costs, downtown development investments and homelessness as other costly issues that could hamper Livermore's financial progress.

Read the full report here.