Item 7 - PH/Motor Veh.Fuel Tax - Laserfiche WebLink

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RELATED CITY POLICIES The council' s Vision and Goals Statement with respect to Fair, Stable and Adequate Financial Resources reaffirms commitment to "a local government whose ongoing financial resources are based on a fair and equitable system of taxation and other revenue sources and are adequate to maintain and deliver municipal services." The 2001-2002 City Council Work Plan Item 1 under this goal called for an effort to "Identify and implement funding sources (including possible reallocation of existing sources) for operation, maintenance and preservation of the transportation system." It was based on this charge that the Citizen Budget Subcommittee on Transportation System Funding began meeting in September of 2000 to study this issue and develop its report and recommendation. Additionally, the City's FinancialManagement Goals and Poficy, A. 4, states that the City's municipal service priority Level 2 (second only to the preservation of the public safety system) is to "maintain and replace the City's fixed assets, which includes.., infrastructure.., so as to optimize their life." COUNCIL OPTIONS This is a public hearing and, as such, the council is not required to take any action, as action is currently scheduled for January 10, 2005. However, the council could choose to do the following: Option 1: The council could choose to make no changes to the Eugene Code concerning business license tax on motor vehicle fuel dealers and decline to take any action on January 10. Option 2: The council could direct the City Manager to move forward with the proposed amendments to the Eugene Code, increasing the Business License Tax on Motor Vehicle Fuel Dealers by an additional [amount to be specified] cents; Option 3: The council could choose not to specify the exact amount of the fuel tax in the amending ordinance but, instead, make provision in the ordinance to allow the fuel tax level to be adjusted administratively to support the pavement preservation funding target determined each year in the annual budget process and approved by council; and/or Option 4: The council could provide direction for additional amendments prior to adoption, including consideration of a refund provision for bulk fueling facilities servicing vehicles already subject to the weight-mile tax. CITY MANAGER'S RECOMMENDATION The City Manager recommends implementation of a 2-cent increase to the existing local motor fuel tax and implementation of a provision for 80% refunds to the specified diesel users. The scheduled date for action on the ordinance is January 10, 2005. SUGGESTED MOTION I move to direct the City Manager to pursue Options 2 and 4, moving forward the proposed amendments to the Eugene Code and increasing the motor vehicle fuel tax by 2 cents, and also proposing amendments to the code to authorize an 80% refund of city tax for fuel sold for vehicles fueled at their owner's own facility which are also subject to the state weight-mile tax. L:\CMO\2004 Council Agendas\M041206\S0412067.doc