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ORDINANCE NO. 20401 AN ORDINANCE CONCERNING MOTOR VEHICLE FUEL DEALER'S BUSINESS LICENSE TAX AND AMENDING SECTION 3 OF ORDINANCE NO. 20337. The City Council of the City of Eugene finds that: A. In January 2005, the City Council enacted Ordinance No. 20337 approving a two- cent increase to the motor vehicle fuel tax from three to five cents per gallon. Section 3 of Ordinance No. 20337 contained a sunset provision with respect to the two-cent increase. The sunset provision will cause the tax to revert to three cents per gallon on February 29, 2008. B. In adding the sunset provision, the City Council anticipated that the three years would allow sufficient time to complete a comprehensive review of available funding options and to develop a stable funding strategy to meet the City's transportation system needs. C. Although substantial street preservation work has been completed utilizing the five-cent per gallon motor vehicle fuel tax, the backlog of needed repair work continues to grow and construction costs continue to rise. By early 2007 the estimated cost of that backlog had grown to nearly $1 70 million, and without new funding, is proj ected to grow to more than $280 million within the next 10 years. D. The Council subcommittee studying the City's transportation funding needs and options recommended that the current five cent per gallon motor vehicle fuel tax be increased by three cents per gallon to eight cents per gallon. E. On May 29, 2007, the City Council approved Ordinance No. 20384, which increased the motor vehicle fuel dealer's license tax by three cents per gallon and repealed the sunset provision contained in Section 3 of Ordinance No. 20337. This ordinance was subject to a referendum petition, and the Council subsequently repealed Ordinance No. 20384. In lieu of that ordinance, the Council submitted to the electors of the City a measure to increase the motor vehicle fuel dealer's business license tax by three cents per gallon. F. At the election held on November 6, 2007, the electors of the City rejected the measure to increase the motor vehicle fuel dealer's business license tax by three cents per gallon. G. The City Council finds it would be in the public interest to extend by three years the sunset provision in Section 3 of Ordinance No. 20337, so that the motor vehicle fuel dealer's business license tax as set forth in Section 3.467(b) of the Eugene Code, 1971 remains at five cents per gallon until February 28, 2011. NOW, THEREFORE, based on the above findings, Ordinance - 1