Item B: Funding Strategies for Transportation System Operations, Maintenance, and Preservation

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Appendix I Transportation System Funding Project Overview of Individual Funding Options Expanded Assessment Practices Local improvement districts (LIDs) are a common tool that has traditionally been used by Brief communities in Oregon and other states to pay for the cost of providing Description ofinitial infrastructure to serve a specific area of the community. In Eugene, assessments Funding Option associated with LIDs have generally been allocated to the adjoining property owners for their share of an initial improvement. As an example, when an unimproved street is initially improved to City standards, the property owners adjacent to the street bear a portion of the improvement costs. From that point forward, the community is responsible for the preservation, maintenance and ultimate replacement of that street. This option proposes to expand this current tool to 1) pay for the replacement/ reconstruction of the infrastructure and/or 2) use the LID concept for preservation and maintenance needs such as overlays (maintenance districts). This approach has never been used by the City of Eugene. However, there is no legal Precedence barrier to assessing adjacent property owners multiple times for the replacement or (prior Council preservation of the infrastructure. The test would be whether there is a ?special? benefit history, other to the adjoining property as compared to the overall community. Staff is unaware of this jurisdictions? approach being used elsewhere in Oregon. Politically, it would be very difficult to get practice, etc.) support by the adjoining property owners. In addition, there is code provisions that allow for project remonstrances that would be difficult to overcome by Council. The calculation is typically based on a cost per foot of property length adjacent to the Calculation Base street or square footage if wastewater or stormwater systems are the basis of the LID. and Typical Typical street assessments run between $70 and $100/foot, depending on location and Rates basis of the assessment (street classification). Currently, staff estimate that a $53 million street reconstruction backlog exists for the Estimated street network over which Eugene has jurisdiction. Most of this financial liability is Revenue Yield, associated with the arterial/collector street network. Approximately 30% to 50% of the Administration/ liability might feasibly be addressed through LIDs/assessments. The balance of the costs Enforcement would need to be addressed through the Road Fund or other sources. Costs There is legal authority to assess a property more than once. However, the historical use Legal Authority of this tool has been focused on the cost of an improvement. The use of these initial and Restrictions funds would be restricted to capital projects--they could not be used for operations and on Use maintenance. The adjoining property owners pay for the improvements under current policy. The Incidence (who district envisioned under this option could be broader and effect a larger geographic area pays?) as long as there could be a ?special? benefit defined for the properties within the boundary of the LID. Sound walls are an example of a situation where multiple properties have been assessed based on the degree of benefit derived. I1