Item B: Tax Levy for Pavement Preservation

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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: January 28, 2008 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 a continuation of the discussion about funding for pavement capital preservation projects with a property tax. The City Council is asked to provide direction for development of a resolution to place a measure on the ballot in May of 2008. BACKGROUND Council Action History The City’s current five-cent local gas tax, together with other dedicated pavement preservation funding, has allowed the City to complete nearly $16.5 million in street preservation project work since 2003, with additional contracts in progress. This past year, more than 17.4 lane miles of slurry seal projects and 20.5 lane miles of rehabilitation projects were completed, including the overlay of portions of 18th th Avenue, Chambers Street and Bailey Hill Road. Projects planned for 2008 include portions of East 13 Avenue, Barger Drive, Chambers Street and Roosevelt Boulevard. In spite of these accomplishments, the backlog of needed repair work continues to grow in the face of rapidly rising construction costs and insufficient revenues. In late 2001, the City was facing an estimated $67 million backlog in pavement preservation work. By spring of 2007, the estimated cost of that backlog had grown to nearly $170 million and, with no new funding, was projected to grow to over $280 million within the next 10 years. With the potential loss of 40% of the current local fuel tax proceeds, the growth in the backlog of street repairs would accelerate even more rapidly. 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 adequately 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. This proposal for a bond measure for capital street repairs is an integral component in a package strategy recommended by the subcommittee, and approved by the council, to adequately and equitably fund Eugene’s transportation system for a variety of users. The package of proposed solutions included a street user fee based on parking spaces, and a street and bike/pedestrian path lighting fee, and an increase in the local motor vehicle fuel tax. To ensure continuation of a reliable revenue stream to support ongoing street operations, maintenance, and preservation while the council continues efforts for F:\CMO\2008 Council Agendas\M080128\S080128B.doc