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

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Transportation Utility Fee In 1985 La Grande was the first of eight Oregon cities to implement a TUF, followed by Precedence (prior Ashland, Eagle Point, Tualatin, Medford, Phoenix and Wilsonville. The City of Talent most Council history, recently adopted a TUF in 2000. Municipalities in Texas, Washington and other states are also other using this method of transportation funding. jurisdictions? practice, etc.) The Eugene City Council has discussed the concept of a TUF in the context of stormwater utility system funding (1994), development of the Multi-year Service and Funding Plan (1998), and draft Transplan discussions (1999-2000). No action on a TUF was taken, however. The total fees charged are typically calculated to produce only the level of annual revenue Calculation Base necessary for administration, operation, maintenance, minor improvement, preservation, and Typical modernizationand reconstruction the transportation system. The individual fee anyone is asked Rates to pay is based upon the estimated trips generated based on the type of use of the developed real propertythey occupy. To measure trip generation, the Institute of Transportation Engineers (ITE) has produced a , which is widely used by municipal engineering Trip Generation Manual departments. This manual is based on decades of nationwide study of traffic generated by a wide range of property uses. The City of Eugene currently uses the ITE Trip Generation in it?s formula for determining transportation SDCs. Manual In most Oregon cities with TUFs, the typical number of trips for a zoned use, as given in the ITE, is multiplied by the number of square feet of the buildings or Trip Generation Manual number of dwelling units. This result is then multiplied by a city-specific cost factor per trip. Adjustments may be made for a number of factors, such as increased generation of truck traffic as opposed to other vehicles. Further adjustments may be made for permitted deferrals or discounts. In Oregon cities with a TUF, the resulting fees vary from $1.42 to $5.12 per month for a single family home, with fees for non-residential activities varying considerably depending on the traffic generated. For example, in 1997 the Medford TUF assigns a monthly fee of $27.84 to a fast food restaurant, and a fee of $2,195.07to a major shopping center. The fee for a single family home in Medford in 1997 was $2.20. Transportation utilityfees are set annuallyby council resolution or administrative action to Estimated meet approved budget requirements of the transportation system. The net revenue to be raised Revenue Yield, is controlled by the normal budgeting process. The fees to be paid are then calculated according Administration to a methodology adopted by council or administrative action. The amount of net revenue and Enforcement generated is totally dependent on the budget requirements and resulting fee levels. Costs Administrative costs are stable, regardless of the amount of revenue raised by the TUF. A more complex methodology will result in higher administrative costs, while a simpler methodology will be cheaper to administer. If Eugene were to raise $10 million gross revenue from a relative simple TUF, occupants of each single family residence would pay an estimated fee of $4.19 per month. This assumes that households will pay their proportionate share of one-third and non-residential activities are paying about two-thirds of the total revenue generated. The fee paid by commercial and other non-residential activities would vary widely depending on size and the estimated level of trips their activity generates. I14