Item C: Strategies for Transportation Funding

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RELATED COUNCIL GOALS AND POLICIES The council’s Vision and Goals Statement with respect to Fair, Stable and Adequate Financial Resources reaffirms its 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.” In previous years, the council has identified specific work plan items to “identify and implement funding sources (including possible reallocation of existing sources) for operation, maintenance and preservation of the transportation system.” Additionally, the City’s Financial Management Goals and Policy, A.4, states that the City’s municipal service priority Level 2 (second only to the preservation of the public safety system) is to “maintain and replace the City’s fixed assets, which includes… infrastructure…so as to optimize their life.” COUNCIL OPTIONS The strategies contemplated here are intended to help achieve greater long-term financial stability for the operations, maintenance and preservation of the city’s transportation service system. Option 1: The council could direct the City Manager to include in the FY07 Proposed Budget a shift in a portion of the funding for the Street Trees/Median Maintenance Program (total program costs of approximately $1,310,000) from the Road Fund to the Stormwater Fund, with the remainder of the program funding to be provided from other City fees or funds. Option 2: The council could direct the City Manager to bring back a proposal for the implementation of a Eugene Livability Fee (ELF) to fund programs that enhance community livability and transportation alternatives, including funding for the street trees/median maintenance program. Option 3: The council could direct the City Manager to bring back a proposal for the implementation of a city-wide Street Lighting Fee to fund the operation, maintenance and enhancement of the City’s street lighting system along arterial, collector and neighborhood streets. Option 4: The council could direct the City Manager to bring back a proposal for reestablishing the previously repealed Transportation System Maintenance Fee to address not only the projected ongoing operating deficit in Road Fund street operations and maintenance, but also to generate additional revenue to address the remaining annual funding gaps in the pavement and off-street bike path preservation programs. Option 5: The council could take no action at this time with regard to providing additional funding for the operations, maintenance and preservation of city streets, which would result in service reductions of approximately $2 million to be phased in during the FY07 and FY08 fiscal years. Option 6: The council could direct the City Manager to do any combination or variation of the above options. L:\CMO\2006 Council Agendas\M060215\S060215C.doc