Item A: Road Fund Update - Laserfiche WebLink

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pavement preservation projects, some of which might be delayed if the funding were to be redirected. ? General Fund Revenue – The council could choose to transfer new or existing general City revenue from the City’s General Fund to fund street maintenance, operations and capital preservation. However, the General Fund is facing its own significant financial challenge in the form of a long-term structural financial deficit in the fund which pays for many of the City’s most valued community services. Regardless of the revenue mechanisms and strategy adopted for the FY10 Road Fund budget, it is critical that the council and the City Manager continue to pursue other potential long-term solutions, including county-wide vehicle registration fee and/or gas tax regional opportunities such as a , as well as legislative remedies and funding solutions at the statewide level. Staff also continues to explore in street and bike path lighting fees,street utility fee based on conceptual terms both as well as a parking spaces. RELATED COUNCIL GOALS AND POLICIES The council’s Vision and Goals Statement with respect to Fair, Stable and Adequate Financial Resources reaffirms commitment to “a local government whose ongoing financial resources are based on a fair and equitable system of taxation and other revenue sources and are adequate to maintain and deliver municipal services.” The goal of the current council Transportation Initiative is to “Develop mechanisms to adequately fund Eugene’s transportation system for cars, trucks, bikes and pedestrians, including maintenance and preservation and capital reconstruction.” COUNCIL OPTIONS The three principal strategies available for balancing the FY10 Road Fund budget are: 1) to reduce the current service system to the level of existing and projected resources; 2) to increase the level of revenue to adequately fund the current service system for FY10 and future years, or 3) to implement a combination of service reductions and revenue increases. The specific policy options available include: Option 1: Develop the FY10 Road Fund budget based on known, existing revenue, which would require reductions in street services of approximately $4.0 million beginning in the FY10 fiscal year. Option 2: Develop the FY10 proposed Road Fund budget based on funding assumptions to include new revenue dedicated to street operations and maintenance. This new revenue package could include 1) a proposal for a franchise fee on City-owned stormwater and local wastewater utilities and/or 2) a proposal for a surcharge on solid waste (garbage) haulers. Option 3: Redirect a portion of one or more existing revenue sources to fund a subset of the critical street maintenance and preservation program which might otherwise be defunded (e.g., redirect $500,000-$1.0 million of local gas tax proceeds for in-house street maintenance services such as crack sealing, asphalt/concrete maintenance.) The City Manager would not proceed with this option without further discussion with the council. Option 4: Develop the FY10 Road Fund budget based on funding assumptions to include one or more of the proposed new revenues; some modest efficiency savings and service realignments; and, if necessary, and only after further council discussion, redirection of a minor portion of the local gas tax proceeds to fund on-going street operations and maintenance services. Z:\CMO\2008 Council Agendas\M081112\S081112A.doc