The cost for new asphalt on weather-damaged rural roads soared 28% higher this year compared to last year.
With the final phase of this year’s overlay program scheduled for completion by the end of this week, Bartholomew County Highway engineer Danny Hollander says taxpayers have shelled out $101,272 a mile for the improvements. In comparison, it only cost $79,118 a mile during the same period in 2021.
While construction costs invoiced by Milestone Contractors ended up a little less than anticipated, Hollander said several other factors diminished that benefit. Inflation resulted in a $2,811,075 low bid to put a new blacktop on 25 miles of county roads. However, the maximum amount available through the Community Crossings matching grants program is $1 million a year.
The county had to come up with $1.8 million to cover all costs, rather than just the million in matching funds required annually in previous years, Hollander said.
Federal regulations allowed county government to spend a portion of its federal American Rescue Plan allotment to cover the shortfall. Bartholomew County received $10 million through ARP to replace revenue lost as the result of the COVID-19 pandemic.
This is essentially money the county can spend where they feel it is most needed, Bartholomew County Auditor Pia O’Connor said.
While colder temperatures will soon close down asphalt plants for the winter, Hollander said he doesn’t foresee an end to inflation any time soon, which is hitting his department on a number of levels.
Supply chain issues and labor shortages are having an adverse effect on several public and private projects that include road construction, the highway engineer said. But those two problems have jointly caused a lack of one of concrete’s key ingredients — cement mix.
Although frozen ground and idle asphalt will bring road work to a halt, crews are often able to work on bridge projects during the winter months. However, that option will be limited if cement mix isn’t available to make concrete, Hollander said.
“Of course, you never know what oil is going to do or OPEC,” Hollander said. “Asphalt is mostly oil, so the cost depends on the oil prices.”
The U.S. also is facing a nationwide diesel fuel shortage. Several news reports say the shortage is due to many factors including refinery outages, long-lasting effects of the pandemic and the war between Russia and Ukraine.
