Item B: Tax Levy for Funding of Pavement Capital Preservation Projects0

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Work Session: Tax Levy for Funding of Pavement Capital Preservation Projects Meeting Date: December 10, 2007 Agenda Item Number: B Department: Central Services Staff Contact: Sue Cutsogeorge www.eugene-or.gov Contact Telephone Number: 682-5589 ISSUE STATEMENT This work session is to discuss funding for pavement capital preservation projects with a property tax. The council is asked to provide direction for development of a measure to be placed on the ballot in 2008. BACKGROUND Council Action History In January 2007, the council formed a Council Subcommittee on Transportation Funding Solutions (the “subcommittee”) to study transportation funding options and bring back creative solutions for ade- quately funding Eugene’s transportation system for cars, trucks, bicycles and pedestrians in ways that collect funds proportionately (or equally) from residents and non-residents who use the roads, are more consistent with sustainability goals, have direct connection to use of the roads, and give incentives to those who do not have a car or use one very little. As of April 2007, the backlog of needed repair work on the transportation system had grown to nearly $170 million and was projected to grow to more than $280 million at current funding levels within the next 10 years. In order to completely eliminate the pavement preservation project backlog, it was esti- mated that nearly $27 million would be needed per year. In addition to current funding, the subcom- mittee recommended additional annual funding of $13 – $14 million, bringing total funding up to $18 million. This additional funding will stabilize the annual overlay program and reduce the reconstruction backlog. Attachment A includes an excerpt of the subcommittee’s report on the need for this funding. The subcommittee presented its report to the council on May 23, 2007. That report set out recommenda- tions to address adequate funding for the operation, maintenance and preservation of the local trans- portation system. The City Council reviewed the subcommittee recommendations and approved moving ahead with four of the five revenue sources: Capital Local Option Levy, Street and Bike Path Lighting Fee, Street Utility Fee Based on Parking Spaces and increased Local Motor Vehicle Fuel Tax. The subcommittee also recommended a solid waste collection surcharge, but the council chose not to pursue that funding source. For a summary of the council action history on the funding solutions, along with next steps for each, see Attachment B. Subcommittee Recommendation for Capital Local Option Levy The subcommittee recommended that the transportation funding package include a capital local option levy of approximately $6 million in net revenues annually. Council subsequently decided to allocate F:\CMO\2007 Council Agendas\M071210\S071210B.doc