Resolution No. 4915 - Laserfiche WebLink

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 Although the street utility fee, which was designed to generate $6.5 to $7 million annually was adopted, it was repealed before it could be fully implemented.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