Item B - Resolution Referring 3-Cent Increase to Ballot

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million for FY08 (about $2.2 million by FY10) for activities such as street lighting, pothole patching, street tree maintenance, signing and striping of City streets. F. Although the five-cent per gallon motor vehicle fuel tax has allowed the City to complete nearly $12.9 million in street preservation project work since 2003, the backlog of needed repair work continues to grow, as do rapidly rising construction costs. In late 2001 the City faced an estimated $67 million backlog in pavement preservation work. By early 2007 the estimated cost of that backlog had grown to nearly $170 million, and without new funding, is projected to grow to $282 million within the next 10 years. G. The Council subcommittee’s recommendation to increase the motor vehicle fuel tax to eight cents per gallon was one component in the recommended funding package, but was an essential component that would ensure the continuation of a reliable revenue stream to support ongoing street operations, maintenance, and preservation. H. The City Council considered the subcommittee’s recommendations, and on May 29, 2007, the City Council approved Ordinance No. 20384 which increased by $0.03 per gallon the motor vehicle fuel dealer’s license tax, and repealed the sunset provision contained in Section 3 of Ordinance No. 20337. I. Subsequent to the submission of a referendum petition, on August 15, 2007, the City Council repealed Ordinance No. 20384. J. The City Council finds it would be in the public interest to submit to the electors of the City a measure amending Section 3.467 of the Eugene Code, 1971, to increase by $0.03 per gallon the motor vehicle fuel dealer’s business license tax. NOW, THEREFORE, based upon the above findings, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, a Municipal Corporation of the State of Oregon, as follows: Section 1. A city election is called for the purpose of referring to the legal electors of the City of Eugene a measure adding a new Subsection (c) to Section 3.467 of the Eugene Code, 1971, to read as follows: Amount and Payment. “3.467 In addition to any fees or taxes otherwise provided for by law, every dealer engaging in the city in the sale, use or distribution of motor vehicle fuel, shall: (c) In addition to the license tax imposed by subsection (b) of this section, pay a license tax computed on the basis of $0.03 (three cents) per gallon of such motor vehicle fuel so sold, used or distributed as shown by such statement in the manner and within the time provided in this code.” Section 2. The City Council orders this city election to be held in the City of Eugene, Oregon, concurrently with the statewide election on November 6, 2007, in accordance with the provisions of Chapter 254 of the Oregon Revised Statutes, and the ballots shall be counted and tabulated and the results certified as provided by law. Resolution - 2 F:\CMO\2007 Council Agendas\M070815\S080815B-attA.doc