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<br />RESOLUTION NO. 4915 <br /> <br />A RESOLUTION CALLING A CITY ELECTION ON <br />NOVEMBER 6, 2007, FOR THE PURPOSE OF REFERRING <br />TO THE LEGAL ELECTORS OF THE CITY OF EUGENE <br />A MEASURE AMENDING SECTION 3.467 OF THE <br />EUGENE CODE, 1971 TO INCREASE BY $0.03 PER <br />GALLON THE MOTOR VEHICLE FUEL DEALER'S <br />LICENSE TAX. <br /> <br />The City Council of the City of Eugene finds as follows: <br /> <br />A. Based on a recommendation from the Citizen's Subcommittee on Transportation <br />System Funding, the City's enacted its first motor vehicle fuel tax at three cents per gallon in <br />January, 2003, and has generated approximately $2 million per year since that time. The <br />Committee recommended a combination of the motor vehicle fuel tax and a transportation <br />system maintenance fee in order to generate approximately $9 million annually to address the <br />City's critical transportation system funding needs. Although the street utility fee, which was <br />designed to generate $6.5 to $7 million annually was adopted, it was repealed before it could be <br />fully implemented. <br /> <br />B. A two-cent increase to the motor vehicle fuel tax was approved in January 2005, <br />along with a sunset provision resulting in the tax reverting to three cents per gallon on February <br />29, 2008. It was anticipated that the three years would allow sufficient time to complete a <br />comprehensive review of available funding options and develop a more permanent funding <br />strategy to meet the City's transportation system needs. <br /> <br />C. In September 2005 the financial status and fund forecast for the City's Road Fund <br />was reviewed and discussed by the Council. The Council thereafter directed the City Manager to <br />develop a FY07 Road Fund budget and to bring back to the Council a proposal for a new revenue <br />funding package that would address the ongoing operating deficit in street operations and <br />maintenance and generate additional revenue to fund the backlog of unfunded projects. <br /> <br />D. Starting in early 2007 a Council subcommittee studied the City's transportation <br />funding needs and options, and submitted its report in May 2007, and recommended increasing <br />the local motor vehicle fuel tax by three cents per gallon to eights cents per gallon (and repealing <br />the sunset provision), which would generate an estimated $2 million annually. This increase, <br />together with the other funding options recommended by the subcommittee would generate <br />approximately $16 million per year and would address the projected ongoing operating deficits <br />in the Road Fund operations and maintenance activities and provide funding for the $170 million <br />backlog of unfunded projects. <br /> <br />E. Due to loss of historical county road partnership revenues and a flat growth in <br />state revenues, the Road Fund is expected to have an annual operating deficit of over $1.6 <br /> <br />Resolution - 1 <br />