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fuel tax and approved and then repealed a TSMF ordinance after Springfield repealed its TSMF ordinance. He reviewed the existing revenue sources: · Three-cent local option gas tax · Transportation system development charge reimbursement component · Transportation Management Area (TMA) status qualified for additional federal funding · Lane County transfer of Oregon Transportation Investment Act (OTIA lll) funding Mr. Corey said that almost $3.5 million in preservation projects had been placed on the ground during the past three construction seasons and while progress had been made, the backlog continued to grow to about $93 million and funding was $4.5 to $5 million short of the Budget Committee's recommendation each year. He referred to a chart that demonstrated the backlog would reach $180 million over the next ten years if no additional action was taken, while full funding at the $9 million level would reduce the backlog to the level it was at three years ago and continue to reduce it over the next several years. Mr. Corey summarized the policy issues before the council as: 1. Is transportation, capital preservation, and the growing backlog still a priority? 2. If so, is an increase to the local gas tax and/or revisiting the TSMF ordinance an appropriate solu- tion? Mr. Corey reviewed the options set forth in the agenda packet and said that staff recommended the option that combined a two-cent increase to the local gas tax and a TSMF to generate an additional $4.5 million annually for pavement preservation funding. He said the rationale for the staff-recommended option was that it reflected the recommendation of the Budget Committee and provided a balanced approach as everyone who benefited from the transportation system participated in the cost even if they did not purchase gas. He indicated that a TSMF coupled with an increase in the local gas tax would need to generate substantially less money than what was contemplated by the earlier TSMF initiative. Also, trip generation data was more sophisticated and along with pass-by trip methodology could help establish a reasonable cap to address high-end user estimated rates. Mr. Corey said that Springfield was able to meet its current pavement preservation funding needs through the local option gas tax and the OTIA lll transfer from Lane County. He said the Eugene Area Chamber of Commerce's position was that pavement preservation funding remained a top priority for the community and surveyed members had indicated a preference for a gas tax over TSMF. He said that representatives of Springfield and the chamber were present to answer questions. He encouraged the council to adopt the staff recommendation. City Manager Taylor asked the council to provide feedback on whether the issue was still a priority, what action to take, and when to take it. Ms. Solomon expressed disappointment that County representatives were not present as there had been no progress on discussions of countywide funding solutions. She stated her support for the concept of a gas tax and TSMF and directed the council's attention to a message from Bruce Mulligan, lay member of the Budget Committee, supporting the staff recommendation if the revenue generated was specifically focused on the backlog of needed reconstruction and overlay instead of ongoing operations and maintenance. She urged that the amount of any proposed TSMF be clearly communicated to both business and residential MINUTES--Eugene City Council September 27, 2004 Page 3 Work Session