Item 6: Ordinance Concerning Solid Waste Powers

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the final solution will likely be comprised of a number of component parts including the local gas tax, bond measure, state revenue sharing, and other fees. We expect there will be those who dislike each of the component parts to some degree and, similarly, it's unlikely any single solution will be satisfactory to everyone. The immediate concern is to close the gap that has resulted from years of inadequate funding, a gap amounting to nearly one-third of what is necessary to sustain a program of pothole patching, street lighting, traffic signal maintenance, signs, striping, sidewalks, and related operations and maintenance work. The garbage hauler surcharge would allow us to close a portion of that gap. A one-year sunset provision has been suggested as a way to ensure that the surcharge does not automatically become a permanent funding solution. While there are administrative efficiencies in setting up the surcharge as a longer-term funding mechanism, it is certainly possible to include a sunset provision that would limit the initial term of the fee, for example from July 1, 2009, to June 30, 2010. If a one-year sunset provision were to be added to the surcharge ordinance, it would be very important for council to identify alternate revenue strategies fairly early in FY10 to allow reasonable time to develop and implement such measures by the start of FY11. Potential Amendment 1: Move to amend the ordinance to add a Section 3 which reads as follows: “Unless otherwise extended by the City Council, subsections (1)(h) and (2) of Section 3.250 of the Eugene Code, adopted by the City Council through this Ordinance No. shall sunset on June 30, 2010.” ISSUES RELATING TO ADMINISTRATION AND TIMING AND IMPACT OF NEW FEES During the public engagement process and in subsequent discussion by council, additional questions were raised that relate to administrative and collection issues associated with the proposed surcharge, the wisdom of imposing new fees in an economic downturn, and the potential impact of the proposed surcharge on hauler revenues and school district budgets. While these may not relate directly to the proposed ordinance, they are valid considerations in this discussion and deserve some response. Concern about Administrative and Collection Issues Concern was expressed as to how the solid waste haulers would sort through which revenues were subject to the new surcharge and how they would be reporting those revenues during the initial transition period, when they were collecting revenues generated during multiple periods. City staff in the Solid Waste Management & Prevention program and in the Public Works Department are committed to working over the next few weeks with city-licensed garbage haulers to develop administrative rule changes and implementation agreements which are reasonable and practical to implement for all parties concerned. Not the Time for New Fees; Should Be Using General Fund Resources to Fund Core Road Services Several citizens and a councilor cautioned that, with the current economic conditions, this is not the time to be imposing any new fees or charges on Eugeneans. Others opined that the Council should be prioritizing services to operate within existing resources and called for reconsideration of the Council practice of not using General Fund resources to fund ongoing Road Fund services. In July 2000, citing the lack of sufficient resources in the Road Fund to maintain existing levels of street services, City Council directed the citizen members of the Budget Committee to study Eugene’s transportation funding issues and to bring back their conclusions and funding recommendations to council. The citizen subcommittee responded with a package solution intended to raise $9 million of new transportation funding revenue annually to address both pavement preservation and ongoing street maintenance needs. Nearly nine years later, and through a period of economic expansion and relative prosperity, the funding gap in the Road Fund has grown to nearly $4 million per year. Time is running out for making decisions on funding these critical street services. Chronic operating deficits are projected to deplete the fund balance to zero by the end of this year. Now is the time for Council to make these