Item A: GO Bond for Street Preservation

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Local Fuel Tax ? Eugene’s gas tax is 5 cents per gallon (it has been at 5 cents a gallon since January 2005) ? 2 cents of that is subject to a sunset provision; the sunset has been extended to 2011 to allow more time to see if alternate sources of revenue can be found (examples: increasing the state gas tax to replace the money that currently comes from the local gas tax, or a county vehicle registration fee) ? Each penny of the local fuel tax generates about $650,000 per year; therefore, the current 5-cent local fuel tax generates about $3.2 million per year for street repairs ? The local motor vehicle fuel tax is closely tied to the use of the transportation system: the more you drive, the more wear and tear you put on the streets, and the more you pay through a gas tax. ? Currently, Eugene's pavement preservation program is funded primarily by the local motor vehicle fuel tax. ? More information is available on the City’s web site (go to www.eugene-or.gov/pw and click on the street funding link. Reallocation of General Fund Resources ? Council allocated $1.5 million for capital pavement repairs in FY07. These funds were used to overlay streets that otherwise would have deteriorated to the point of needing reconstruction (at a cost of five times the cost of an overlay) ? As part of a cooperative funding agreement with Lane County, Council made available $4.5 million from the General Fund (facility reserve) for preserving critical county services in exchange for $4.5 million in County road funds which will be used for repairs of Eugene streets beginning July 1, 2008. ? Council approved $1 million from the General Fund for “pothole patching” in FY09 and another $1 million in FY10. Work efforts to be funded include a dedicated “pothole patrol,” maintenance overlays primarily on unimproved streets, and repairs to a number of badly rutted and potholed intersections around town. ? All these allocations are in addition to the funds currently dedicated to street repairs in the City’s O&M Road Fund (which comes primarily from state gas taxes and vehicle registration fees) and capital pavement preservation program (which comes primarily from local gas taxes). Street Fee ? This is still in the conceptual stages ? The best fee is one that is easy to understand and inexpensive to bill and collect (so that more money goes to street repairs and less to fee administration) ? Intended to generate annual net revenue of approximately $6.5 million, with $150,000 per year dedicated to funding traffic calming measures ? Estimated to cost the average household about $5 per month Street Lighting Fee ? This is still in the conceptual stages ? Intended to generate approximately $800,000 annually to operate and maintain and provide for reasonable expansion of Eugene’s street and bike/pedestrian path lighting system ? Estimated to cost the average household $1.50 per month Other Potential Sources of Funding ? Garbage surcharge could raise $1 million to $2 million per year ? County vehicle registration fee (could raise up to $9 million per year countywide; revenue to Eugene not currently determined) ? Countywide gas tax (could raise $1.5 million per penny per year countywide; revenue to Eugene not currently determined) ? State solutions, including an increase in the state’s gas tax.