CC Minutes - 01/27/03 Mtg - Laserfiche WebLink

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Department of Transportation collecting mechanism. He said the use of revenues described in the ordinance were in accordance with the definition of the use of gas tax proceeds as outlined in the Oregon constitution. He said the ordinance anticipated collection through a yet-to-be-drafted intergovernmental agreement with the Oregon Department of Transportation. He said the yield to the City would be approximately $650,000 per one cent increment of gas tax. In response to a question from Councilor Solomon regarding the reason for the $.04 tax, Mr. Corey said the tax was four cents per gallon because that was the amount discussed during the public hearing. He acknowledged that Springfield was implementing a $.03 tax and said Eugene could modify its tax to match Springfield's. Councilor Pap~ expressed his hope that the City of Eugene would implement the same amount for the gas tax that the City of Springfield was implementing. Councilor Pap~ said the gas tax should have been implemented before a transportation system maintenance fee, but stressed that the tax was necessary to halt the deterioration of the City's streets and maintain them at a higher level. He said things would get exponentially worse if the City waited any longer to do something about its streets. He expressed a hope that the County would implement such a tax countywide. Councilor Pap~, seconded by Councilor Nathanson, moved that the council adopt Council Bill 4815, an ordinance concerning a business license tax on motor vehicle fuel dealers. Councilor Kelly commented that there was no need to include a clause in the ordinance that specified implementation of the tax only if it were also implemented by the City of Springfield. In spite of that, he said that if the City of Springfield did not approve a similar gas tax he would look to repealing the gas tax proposed that evening. Councilor Kelly, seconded by Councilor Bettman, moved to amend the motion by changing Section 3.489(2) of the Eugene Code, 1971, as shown on the handout titled "Proposed Motion of Councilor Bettman for Amendment of Business License Tax on Motor Vehicle Fuel Dealers Ordinance." Councilor Kelly said the public had consistently been told that the reason for the transportation system maintenance fee and the gas tax were being implemented was to handle a backlog in street maintenance and preservation. He said the original draft of the ordinance had less specific wording and would allow for building new roads and other things. He said the amendment would specify that the funds collected would only go towards operations, maintenance, and preservation of existing City streets. Councilor Taylor said she was only supporting the motion because of the amendment. She expressed a hope that the previously passed transportation system maintenance fee would be repealed. Councilor Bettman said she would not support the tax if it was not specifically linked to operations, maintenance, and repair of the existing street system. The amendment passed, 6:1; Councilor Pap~ voting in opposition. MINUTES--Eugene City Council January 27, 2003 Page 11 Regular Meeting