Item 3: Resolution on GO Bond for Streets

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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 Revenue 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 capital road repairs 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 capital pavement preservation program fund (which comes primarily from local gas taxes). Street Fee Recommended as part of Council Subcommittee “package”; 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 Recommended as part of Council Subcommittee “package”; still in the conceptual stages Intended to generate approximately $800,000 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 (recommended as part of Council Subcommittee “package”) 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