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EUGENE CITY COUNCIL <br />AGENDA ITEM SUMMARY <br /> <br /> Action: An Ordinance Concerning Motor Vehicle Fuel Dealer's Business Licenses; and <br /> Amending Sections 3.465, 3.467, 3.474, 3.480, 3.483, and 3.484 <br /> of the Eugene Code, 1971 <br /> <br />Meeting Date: January 24, 2005 Agenda Item: 7 <br />Department: Public Works Staff Contact: Kurt Corey <br />www. cl. eugene, or. us Contact Telephone Number: 682-5241 <br /> <br />ISSUE STATEMENT <br />This is an opportunity for the council to discuss and adopt an ordinance amending sections of the <br />Eugene City Code dealing with the Business License Tax on Motor Vehicle Fuel Dealers. The proposed <br />amendments would make effective a two-cent increase in the existing local motor vehicle fuel tax, <br />provide for an 80% refund of motor vehicle fuel tax (MVFT) paid by specified diesel users and <br />implement various minor housekeeping amendments. <br /> <br />BACKGROUND <br />Previous Council Action and History <br />In October 2001, the Citizen Budget Subcommittee on Transportation System Funding presented its <br />recommendation that the council implement a transportation funding package consisting of a <br />combination local motor vehicle fuel tax and transportation system maintenance fee for the purpose of <br />generating an additional $9 million annually to address the City's critical transportation system funding <br />needs. On January 27, 2003, the council approved the local motor vehicle fuel tax at the three-cent <br />level. <br /> <br />On September 27, 2004, the council reviewed the progress to date on pavement preservation program <br />funding efforts, heard updates on cooperative efforts with partner agencies, and discussed the potential <br />implementation of additional funding options, as well as a potential increase in the level of the existing <br />local fuel tax. At that meeting, the council directed staff to bring back draft ordinances increasing the <br />local motor vehicle fuel tax (MVFT) by an additional two cents (to five cents-per-gallon) and <br />establishing a transportation system maintenance fee. The council also requested at that time that staff <br />bring back information on possible bonding options for funding pavement preservation needs. <br /> <br />On October 27, 2004, the council reviewed and discussed the two draft ordinances and also reviewed <br />bonding alternatives for funding the backlog of pavement preservation projects. At that meeting, the <br />council directed that the amendments to the fuel tax code be moved forward to public hearing with no <br />amount specified on the level of tax at this time. The council further determined by majority vote to <br />discontinue efforts to establish a transportation system maintenance fee. A public hearing on December <br />6, 2004, provided additional public input on the proposed changes to the MVFT. <br /> <br /> L:\CMO\2005 Council Agendas\M050124\S0501247.doc <br /> <br /> <br />