Item C: General Obligation Bonds for Street Maintenance

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ATTACHMENT E DRAFT - RESOLUTION A RESOLUTION CALLING A CITY ELECTION ON NOVEMBER 4, 2008 FOR THE PURPOSE OF REFERRING TO THE LEGAL ELECTORS OF THE CITY OF EUGENE A MEASURE AUTHORIZING THE ISSUANCE OF A MAXIMUM OF $81,100,000 OF GENERAL OBLIGATION BONDS TO FUND STREET PRESERVATION PROJECTS. The City Council of the City of Eugene finds that: A. Using the City’s current 5-cent per gallon local gas tax and other dedicated pavement preservation funding, the City has completed nearly $16.5 million in street maintenance and preservation work since 2003, with additional contracts in progress. During 2007, more than 17.4 lane miles of slurry seal projects and 20.5 lane miles of rehabilitation th projects were completed, including the overlay of portions of 18 Avenue, Chambers Street and Bailey Hill Road. Projects in 2008 include portions of 27th Avenue, Barger Drive, Chambers Street and Roosevelt Boulevard. B. The amount of funding for street maintenance and reconstruction has been insufficient to keep up with deteriorating street conditions. The backlog of needed repair work continues to grow in the face of rapidly rising construction costs and is currently $173 million. Streets that have failed to the point of reconstruction create safety problems, cause vehicle repair problems, make walking, biking or driving on the streets uncomfortable, interfere with economic activity and diminish the quality of life. C. In order to address the funding shortfalls within the City’s street preservation program, the City Council determined that a General Obligation Bond measure generating approximately $6.5 million in net revenues annually should be referred to voters. Of that amount, the Council determined that $350,000 should be allocated each year for off-street bike and pedestrian path preservation. D. A general obligation bond measure of $81.1 million of would fund certain street preservation projects over a period of 10 years. The $81.1 million figure accounts for $6.5 million per year for ten years at an inflation factor of 4.8%. The measure would fix more than 180 lane miles of roads and more than 7 miles of off-street bike and pedestrian paths. E. The measure is expected to cost an average of $0.62 per $1000 of assessed value each year for ten years. For an average home value in Eugene, this would be about $109 per year. F. The bond proceeds will be used to overlay or reconstruct the driving surface of streets, as well as to preserve existing integral elements of the street such as curbs, gutters, Resolution - 1