CC Minutes - 01/22/07 Work Session

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balance with other things, it would still be the Budget Committee’s decision. She would support the motion with the understanding the decision was not being made now and would be made by the Budget Committee. Ms. Bettman said the motion required that the initial proposed budget hold library services harmless and that budget would go through the full budget process. Ms. Taylor stated that ultimately it was the council’s decision, not the Budget Committee’s. The vote to hold library services harmless in the budget was a 4:4 tie; Councilors Bettman, Zelenka, Ortiz and Taylor voting in favor and councilors Pryor, Clark, Solomon and Poling voting in opposition. Mayor Piercy voted in favor and the mo- tion passed on a final vote of 5:4. Mr. Poling remarked that the council voted on the Spay and Neuter Voucher Program several years ago and asked for a status report on the program that indicated how much revenue had been collected and how it was used. B. WORK SESSION: Funding Strategies for Transportation System Operations, Maintenance and Preservation City Manager Taylor said that when the council considered an ordinance to establish a transportation system maintenance fee (TSMF) in November 2006, it was tabled until 2007 with the direction that staff develop a proposed funding strategy that included several components such as a TSMF, gas tax, bond levy and commuter tax. He introduced Public Works Director Kurt Corey to outline strategy options for the council’s consideration to address the backlog of road maintenance and preservation projects. Mr. Corey provided an overview of the transportation system funding shortfall and options for addressing that shortfall that had been considered since 2001. He said there was a current backlog of more than $100 million in pavement preservation projects, with a projected FY08 operating deficit of nearly $1.5 million for operation and maintenance activities in the Road Fund. He described the proposed funding options for addressing the backlog and funding shortfall developed in accordance with council direction: ? $.03 per gallon gas tax increase, remove February 2008 sunset on current $.02 per gallon gas tax, with monies earmarked for operations and maintenance – would close the gap for operations and maintenance funding ? Capital local option levy for the November 2008 ballot – no revenue target identified but for each $1 million of revenue generated annually the average taxpayer’s cost would be approximately $12 ? Ordinance establishing a TSMF modified to eliminate the flat base rate component – no revenue target identified but $5 million funding gap would represent approximately a $3.35 cost per month for the average property owner ? Commuter tax based on persons who work but do not live in a jurisdiction based on either the concept of a payroll tax, income tax on employees or business privilege tax – Eugene would be the first community in the state to enact a commuter tax. A $50 per employee business privilege tax would generate approximately $4 million annually; a payroll tax of one-quarter of one percent would generate the same level of revenue, as would an employee income tax of two-tenths of one percent. MINUTES—Eugene City Council January 22, 2007 Page 5 Work Session