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Providing for Partial Refunds on Certain Sales of Bulk Diesel Fuel - Staff is also proposing adoption of an amendment, similar to Springfield' s, granting partial tax refunds to holders of weight receipts (i.e., those paying state weight-mile taxes) on motor vehicle fuel purchased in bulk for distribution at the holder's own fueling facility within the city limits. In July 2004, the Springfield City Council considered testimony showing that a relatively large number of companies with bulk diesel fueling facilities which fuel their own fleets within the Springfield city limits traveled only a minor proportion of their mileage on Springfield streets. As a result, it was concluded that the local companies operating these vehicles were likely paying a disproportionate share of the local fuel tax in that city, compared to the miles driven on local streets. The Springfield City Council subsequently adopted an amendment to its fuel tax ordinance that authorized an 80% refund of city tax for diesel fuel sold for vehicles which were also subject to the state weight-mile tax and were fueled at their owner's own bulk fueling facility within the city limits. A number of local companies in Eugene also have bulk diesel fuel facilities servicing their own fleets within the Eugene city limits. Some of these companies have compiled data to support their assertion that the majority of the miles driven by their diesel-fueled fleets are not driven on Eugene streets. As was the situation in Springfield, this results in a disproportionate tax burden to these companies. Like the bulk fuelers in Springfield, these local business owners are concerned about the competitive disadvantage created by Eugene's fuel tax when applied to their diesel-fueled fleets which are being driven primarily outside the city limits of Eugene. Additional Proposed Revisions - In consultation with the State Fuels Tax Group, staff is proposing a few additional housekeeping amendments in addition to those previously discussed. The first proposed housekeeping amendment addresses the issue of the interest rate to be charged on delinquent tax payments (i.e., equivalent to 12% per annum) and is consistent with the ORS language applicable to the State motor vehicle fuel tax. The second proposed housekeeping amendment expands the language for the exemption of exported fuels to include export transactions in any quantity, since the intention was to exempt all exported fuel not in the fuel tank of a motor vehicle on the basis that such fuel would not ultimately be used in propelling a motor vehicle on Eugene city streets. The third proposed housekeeping amendment would add language to clarify the intent and practice around granting refunds to purchasers who pay the City' s tax for fuel that will not ultimately be used in on-street motor vehicles. These proposed changes are intended to clarify the council's intent around the application of the city fuel tax and also to help maintain consistency between the administration of the city and state fuel taxes. 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." Additionally, the City's FinancialManagement Goals' and Policy, 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." L:\CMO\2005 Council Agendas\M050119\S050119B.doc