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that same time, according to Mr. Corey, the system has added significant capacity, including 45 <br />miles of improved streets, 150 miles of sidewalks, 30 miles of bike paths, and 2,200 street lights, as <br />well as requests for increased service in areas such as the West University Neighborhood. <br /> <br />Mr. Corey said that reserves for Fund 131 would be depleted by the end of the current fiscal year <br />and if the current revenue picture did not change, there would be a shortfall of up to $2 million by <br />FY05. He referred councilors to an audit report prepared by John Ostrowski, entitled City of <br />Eugene Road Fund Operations and Maintenance Efficiency Review. He said the report was <br />requested by the citizen members of the Budget Committee and Mr. Ostrowski had concluded that <br />operations were generally efficient when compared to other cities. He stated that cost-saving <br />measures had been implemented to conserve Fund 131 resources, such as eliminating the <br />Transportation Division and rolling its operations into other divisions, leaving positions vacant that <br />are funded by the road fund, and other cost-cutting measures. He said that House Bill 2041 could <br />potentially offset as much as $900,000 annually, but that left a shortfall in excess of $1 million. <br /> <br />Mr. Corey summarized the revenue options and identified several that warranted further <br />consideration, including street light maintenance districts, franchise fees and license agreements, <br />and additional surface transportation program funds as a result of Transportation Management <br />Area (TMA) designation. He said there were two policy issues before the council: <br /> <br /> · Should road fund operation and maintenance activities be sustained at the current level? <br /> · If so, should new or alternative revenues be pursued to sustain the existing level of <br /> service? <br /> <br />Mr. Corey concluded with a comment from the Citizen Budget Committee report: "In the face of <br />projected operation and maintenance funding shortfalls and service reductions beginning in FY03, <br />ensuring adequate funding for the operation and maintenance activities of the City's transportation <br />system is absolutely essential." He said the staff recommendation was to direct the City Manager <br />to prepare the FY05 budget based upon the current level of service and ask that a combination of <br />alternative revenue sources be developed by staff for consideration at a subsequent work session. <br /> <br />Mr. Kelly thanked staff for the clear presentation in the flowchart of revenue sources and said it <br />would be a good tool to educate the public on how road operations and maintenance were funded, <br />noting that no property taxes were involved. He said the audit report showed the City was <br />conducting operations and maintenance in an efficient way. He supported the idea that the City <br />should operate the street system at the current level and find revenue to do that; however, he did <br />not agree with finding piecemeal revenue sources to bridge the gap. He stated there was a need <br />for overall tax reform and the council needed to reconsider some of the broad-based revenue <br />sources suggested previously by staff. He said he did not like the idea of special fees, such as a <br />street light fee, and felt that those were fundamental services of government and fundamental taxes <br />should support them. <br /> <br /> MINUTES--Eugene City Council July 28, 2003 Page 7 <br /> Work Session <br /> <br /> <br />