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

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Expanded Assessment Practices Staff are not aware of instances of this tool being used for subsequent replacement or Fairness/Equity preservation of infrastructure that was previously assessed. If, ultimately, all property Issues owners in the community would be expected to pay a share of a replacement cost for the infrastructure adjacent to their property, then there would be no equity issue. This tool would be politically challenging to implement. The Council subcommittee on Assessment of street improvement financing recently evaluated a street improvement fee concept Financial whereby all property owners adjacent to an unimproved street would pay a fee that would Stability and be consistent with their share of improvement costs. Council reviewed the proposal and Political chose not to support it. Local residential unimproved streets are currently improved Feasibility through an LID only when a majority of the property owners support an improvement. Arterial/collector street LIDs are generally initiated by Council. If Council chose to expand the use of assessments, they would need to also address the improvements of unimproved local streets if this approach were to be viable. One can assume that this approach would not generate a stable revenue source. Generally, the City provides 10-year financing to property owners for the assessable Potential costs. If an expanded use of assessments were to be used, Council would need to Economic consider such issues as whether the current financing terms offered would be adequate to Impacts meet the owners? needs, the likelihood of foreclosure given there would be a lien against the property, and the frequency at which a property might be reassessed and face another long-term debt. This approach would not be consistent with current policy and long-term practice. It Consistency would not be consistent with the Council goal regarding affordable housing. However, it with Council would provide for safe and efficient infrastructure, consistent with another Council goal. Goals and Policies Staff is unaware of any other jurisdiction in Oregon that uses this approach. LIDs are Other common but have been primarily focused on upgrading an unimproved street to urban Jurisdiction standards. Another broad based approach of using an LID to provide infrastructure to a Experiences large geographic area was the extension and assessment of wastewater services to River Road and Santa Clara. I2