Item B - Transportation Funding - Laserfiche WebLink

Home Browse Search

However, the Board of County Commissioners authorized in May 2004 the transfer of all of Lane County's road operations, maintenance and preservation allocation from the 2003 Oregon Transportation Investment Act (OTIA III) to the cities of Lane County for up to three years. For the City of Eugene, this allocation resulted in a $438,000 payment from the County in August 2004 and is expected to generate additional annual funding in future years of at least $700,000 to be applied to reducing the backlog of pavement preservation projects. The 3-cent local fuel tax implemented by the council in August 2003 generated revenue in the $2 million range for FY04, as projected. Additional dedicated preservation project revenue from transportation reimbursement SDCs, from the new County/City OTIA III revenue sharing agreement and from other fund sources has allowed the City to complete $3.5 million in street preservation project work to-date since the implementation of the fuel tax and the transportation reimbursement SDC, with additional contracts in process. Lacking extensive collection history on the new, dedicated pavement preservation funding sources (i. e., local fuel tax, county OTIA III revenue sharing, reimbursement transportation SDC), staff is nonetheless estimating that over time these sources, along with federal STP monies, will generate $4 million to $4.5 million in ongoing annual revenue. These revenues, together with $4.5 million in proposed additional new revenue, would bring the total funding level very close to the Budget Subcommittee recommendation for $9 million in annual ongoing pavement preservation funding. When the Budget Subcommittee on Transportation Funding presented its report to the council in late- 2001, the City was facing an estimated $67 million backlog in pavement preservation work, as confirmed by an independent consultant. As illustrated by Attachment A, that backlog has since grown to a current level of nearly $94 million. Furthermore, in the absence of council action to identify and secure new additional street preservation funding, it is projected that this backlog will continue to grow to nearly $180 million within the next decade. However, as further illustrated by Attachment A, with additional street preservation funding of $4.5 million (bringing total projected annual preservation funding to approximately $9 million), the City could not only stabilize the growth in the backlog but also begin to make significant progress in reducing this substantial future community liability. Continuing Discussions of Transportation Funding City staff continues to work with the Eugene Chamber of Commerce and other community groups in exploring alternative street maintenance fee models and potential refinements to the City model reflecting more accurate trip data and greater recognition of pass-by and diverted-linked trips. In a commitment to interagency collaboration and support, Eugene staff also continues to meet and communicate with City of Springfield and Lane County staff to share progress reports on transportation funding efforts and accomplishments and to look for opportunities for mutual cooperation and support in transportation funding strategies under consideration by the cities. RELATED CITY 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 L:\CMO\2004 Council Agendas\M040927\S040927B.doc