Item B: Strategies for Long-Term Transportation Needs

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Precedence (prior Council history, other Jurisdictions ~ practice, etc.) Calculation Base and Typical Rates Estimated Revenue Yield, Administration and Enforcement Costs ! ; In 1985 La Grande was the first of eight Oregon cities to implement a TIJF, followed by Ashland, Eagle Point, Tualatin, Medford, Phoenix and Wilsonville. The City of Talent most recently adopted a TUF in 2000. Municipalities in Texas, Washington aud other states are also using tbis method of transportation funding. . The Eugene City Council has discussed the concept of a TIJF in the context of sl:ormwater utility system l1mding (1994), development oftbe Multi-year SeD/ice 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 necessary for administration, operation, maintenance, minor improvement, preseI1lation, modernization and reconstruction the transportation system. The individual fee anyone is asked to pay is based upon the estimated trips generated based on the type of use of the developed real property they occupy. To measure trip generation, the Institute of Transportation Engineers (lTE) has produced a Trip Generation Manual, which is \viddy used by municipal engineering departments. TIlls manual is based on decades of natiomvide study of traffic generated by a wide range of property uses. The City of Eugene currently uses the ITE Tnp Generation Manual in it's formula for detennining transportation SDCs. In most Oregon cities with TITFs, the typical number of trips for a zoned use, as given in the ITE Trip Generation l'vfanual, is multiplied by the number of square feet of the buildings or number of dwelling units. This result is then multiplied by a city~specific cost factor per trip. Adjustment,> 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 TliP, 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 restal.want, and a fee of $2,195.07 to a major shopping center. The fee for a single family home in Medford in 1997 was $2.20. Transportation utility fees are set annually by council resolution or administrative action to , meet approved budget requirements of the transportation system. The net revenue to be raised is controlled by the normal budgeting process. The fees to be paid are then calculated according to a methodology adopted by council or administrative action. The anlount of net revenue generated is totally dependent on the budget requirements and resulting fee levels. Administrative costs are stable, regardless of the amount of revenue raised by the 'IUF. A more complex methodology win 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 WQuld 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 toml revenue generated. The fee paid by commercial and otber non-residential activities would var)' ,videly depending on size and the estimated level of trips their activity generates. Il4