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HomeMy WebLinkAboutItem B: Road Fund Update ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Work Session: FY10 Budget Strategies to Maintain Road Fund Service Levels Meeting Date: April 8, 2009 Agenda Item: B Department: Public Works Staff Contact: Kurt Corey www.eugene-or.gov Contact Telephone Number: 682-5241 ISSUE STATEMENT This work session provides an additional opportunity for the City Council to review and discuss the City Manager’s proposed strategies for maintaining current service levels for street operations and maintenance (O&M) activities in FY10 and beyond. These are the critical street and traffic infrastructure services which keep the streetlights lit, the street signs and signals in good working order, the potholes and cracks patched, the alternative modes goals on track, and more. These services are paid from the City’s Road Operations Fund, which has experienced a 15% decrease in revenue over the last five years while expenditures have increased by 23% in that period, despite an organizational restructuring in FY04 and FY05 which resulted in service reductions, efficiencies and over $1.0 million in annual budget savings. Ongoing operating deficits are projected to deplete the fund balance to zero by late 2009. Without new revenue, the fund will be unable to support roughly one-third of current City street O&M services after June 30, 2009. In previous work sessions, the council has weighed the two key options for keeping the Road Fund solvent—to either stop providing the traditional number of street services in order to live within the available resources and/or look for new ways to fund the services the City decides to keep. The City Manager is finalizing his FY10 Proposed Budget to preserve existing street O&M services through a combination of cost reductions and realignments as well as options for using both existing and potential new revenue sources to preserve critical services. The potential new revenue source which the City Manager will be discussing with the council is a 5% transportation surcharge on solid waste (garbage) haulers. Existing sources of revenue which may be considered for use in preserving critical street O&M services for FY10 include a portion of the local gas tax proceeds and a modest contribution from the City’s stormwater and wastewater utilities. BACKGROUND Previous Council Action and History On May 23, 2007, the Council Committee on Transportation Funding Solutions presented its report, Operating which stated that the first priority use of new revenue generated from this initiative should be “ and maintaining the existing transportation system , including on-street and off-street bike and pedestrian pathways.” This is consistent with the findings of the 2001 recommendations of the Citizen Budget Subcommittee on Transportation System Funding, which included the assertion that “In the face ensuring adequate funding for of projected O&M shortfalls and service reductions beginning in FY03, the operation and maintenance activities of the City’s transportation system is absolutely essential.” Z:\CMO\2009 Council Agendas\M090408\S090408B.doc At its May 23, 2007, meeting, the council approved a general course of action that was intended to lead to the implementation of a package of strategies, including a capital local levy, a street utility fee based on parking, a street and bike path lighting fee, and an increase to the current local motor vehicle fuel tax. On November 12, 2008, the City Manager provided the council with an update about the status of the Road Fund as well as his intended interim funding strategies to keep these critical City services funded for FY10 and beyond. At that meeting, individual councilors acknowledged that the Road Fund funding shortfalls could not be found in service reductions alone and that the need to find new sources of City revenue for transportation systems was great. It was suggested that this looming problem would best be met by a combination of cost reductions/reorganizations and new or enhanced revenue sources. The street utility fee continues to have support by council as part of the long-term funding solution, although there was acknowledgement of the complexities involved in assessing such a fee. On February 8, 2009, the council discussed two new potential revenue sources for preserving existing street O&M services—a right-of-way use fee (similar to a franchise fee) on City-owned utilities, and a transportation surcharge on solid waste (garbage) haulers. Councilors discussed the need for two different sets of funding strategies, with the first being a one-time, “stop gap” plan for fully funding these critical services in FY10. There was some interest in further exploring the proposed garbage surcharge, but at a much lower level. There was also support expressed for looking for federal stimulus money for pavement preservation projects, which might allow the more flexible local gas tax dollars to be used to fund O&M services in FY10. The right-of-way use fee on City utilities received guarded support at a lower amount. The second funding strategy set called for was in the form of a comprehensive “road map” for solving the City’s overall transportation funding problems in the long term. The council acknowledged that developing the longer-term solutions, including a potential Street Utility Fee and a potential Street Lighting Fee, would need to involve more public input and buy-in over the coming months. Financial and/or Resource Considerations Current Budget Outlook Under the most current projections, the Road Fund is expected to generate a $2.3 million annual operating deficit this current year (FY09) and, with no new revenues, that annual deficit would grow to nearly $5 million in the out years of the six-year forecast. In the absence of deliberate action, the fund will deplete all available fund resources and become insolvent sometime in the fall of 2009. On the other hand, a set of $3.8 million ongoing revenue solutions implemented by July 1, 2009, would eliminate the projected future annual operating deficits throughout the forecast period and restore the fund balance to the policy- As an alternative, a minimum of $2.8 million in one-time revenue would be recommended level. needed for FY10 to fully fund the current operations of the Road Fund for one year. Federal Stimulus Award for Pavement Preservation Projects As part of the American Recovery and Reinvestment Act (ARRA), Eugene has been awarded $3.0 million st to be used to fund four pavement preservation projects, including sections of West 1 Avenue, Garfield Street, High Street and Crescent Avenue. These projects will be bid before the end of 2009 and constructed in 2010. These are projects which would not otherwise have been constructed in this time period, had the City been looking to local gas tax monies alone for funding. City Manager’s FY10 Budget Strategy for the Road Fund The City Manager’s strategy for preserving street O&M services through FY10 employs both program cost reductions and realignments as well as a proposal for a one-time revenue strategy for FY10. Z:\CMO\2009 Council Agendas\M090408\S090408B.doc Program Cost-Cutting Measures - Responding to the challenge of identifying opportunities for ongoing cost savings, Public Works is implementing $178,000 of reductions in the FY10 Road Fund operating budget through the redeployment of several employee positions from traditional Road Fund work (street debris removal, development review, night call response) to address emerging needs in other City programs. Staff believes these cost savings are both achievable and sustainable without significant reductions in service or public response. Across the City, staff continues to explore other opportunities for increasing efficiencies and reducing costs. Some of these budget-saving strategies, such as voluntary furloughs, deferred replacement of equipment and vehicles, and reduced use of outside consultants and services, are anticipated to benefit funds and operating budgets across the organization. One-time Funding Strategy - Responding to council direction to bring back a one-time funding strategy to maintain street O&M services through FY10, the City Manager is proposing a three-part funding package as a FY10 stop gap solution, comprised of the following elements: Redirect a portion of the FY10 local gas tax revenues to street O&M 1. - Redirect a maximum of $1.4 million of FY10 local motor vehicle fuel tax revenue from capital pavement preservation to critical street O&M services and back-fill the pavement preservation program funding with the $3.0 million of Federal stimulus payments dedicated to that purpose. Total proposed contribution to FY10 Road Fund budget = $1.4 million ? Next Steps: No specific council action is required since the Road Fund appropriation already exists in the City Manager’s Proposed Budget to spend these flexible revenues for any road operation, maintenance or preservation purpose. Impose a 5% transportation surcharge on solid waste haulers 2. - Move forward with steps to implement a smaller 5% surcharge on solid waste (garbage) haulers, which is estimated to generate $900,000 for FY10 and would increase the bill for a residential customer with a weekly 32-gallon service by an additional 98-cents per month. Commercial customers would see a proportionate 5% increase in their bills for garbage service. Attachment A illustrates the estimated financial impact of the proposed 5% garbage surcharge on a range of residential and commercial customers at various levels of service, along with a list of seven actual commercial customers and the estimated financial impact of the proposed surcharge on their monthly bills. The transportation surcharge would be assessed against solid waste haulers to better reflect the physical and financial impact that their operations impose on the city street system as a result of heavy hauler vehicles running on the majority of city streets every week. This surcharge would be assessed against solid waste haulers on the premise that heavy solid waste trucks cause significantly more damage to city streets than do other categories of lighter vehicles and run largely on local streets, which do not hold up as well under heavy vehicle use. The surcharge also represents fair compensation for private use of the right-of-way, a public asset that haulers rely on to deliver their services. Total proposed contribution to FY10 Road Fund budget = approx. $900,000 ? Next Steps: In moving forward with implementation of this new 5% transportation surcharge on solid waste haulers, the City Manager intends to schedule a public hearing on April 20, to receive public comment on the proposed amendments to the Eugene City Code that would permit the transportation surcharge on solid waste hauler fees to be used for the repair, maintenance, operation and preservation of City-owned roads and streets (see Attachment B). City Council action on those proposed amendments is tentatively scheduled for April 27. If the council adopts the ordinance Z:\CMO\2009 Council Agendas\M090408\S090408B.doc amending the solid waste hauler code provisions, the City Manager would adopt by administrative order a 5% transportation surcharge on solid waste hauler license fees with the intention that the revenues generated from the surcharge be used for the repair, maintenance, operation and preservation of roads and streets owned or maintained by the City. Authorize a transfer from stormwater/wastewater reserves 3. - Move forward with steps to approve a modest, one-time $500,000 contribution for FY10 from existing reserves in City-owned wastewater and stormwater utilities, acknowledging that City utilities derive a direct benefit from the use of the road right-of-way but, unlike other utility providers, have never paid a fee for the commercial use of the right-of-way. Approval of this one-time transfer from City-owned utilities would impose no ongoing obligation on utility ratepayers. However, as part of the longer-term strategy for solving the City’s overall transportation funding problems, the council may wish to expand discussions later this year to include the proposed Eugene right-of-way use fee on City-owned sewer and stormwater utilities to be used for the operation, maintenance and repair of city streets. Total proposed contribution to FY10 Road Fund budget = $500,000 ? Next Steps: Under Eugene City Code, the City Manager sets wastewater and stormwater utility charges by Administrative Order. However, because the use of wastewater and stormwater resources for street O&M (even on a one-time basis) is a significant change in practice, the City Manager intends to schedule a public hearing on April 20 to receive public comment on proposed amendments to the Eugene City Code that would specifically allow the use of certain stormwater and wastewater resources for road operations, maintenance, repair, preservation and reconstruction (see Attachment C). On April 27, the council would have an opportunity to take final action on the proposed code amendments. Budget authority for the FY10 one-time transfer of $500,000 from wastewater and stormwater utility reserves would come to the council for formal approval as part of the FY10 Supplemental Budget #1 later next fall. 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 two 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, on at least a short-term basis, to adequately fund the current street O&M service system through June 30, 2010. The specific policy options available to the council in moving forward with a short-term strategy for funding FY10 Road Fund services are as follows: Option 1: Direct the City Manager to not move forward with implementation of any new revenue sources or redirection of any existing revenues, but instead to develop the FY10 Road Fund Proposed Z:\CMO\2009 Council Agendas\M090408\S090408B.doc Budget based on known, existing revenue, which would require reductions in street services of approximately $4.0 million beginning in the FY10 fiscal year. Illustrative examples of such reductions were discussed at the council worksession on November 12, 2008, and are summarized in Appendix D (attached). Option 2: Direct the City Manager to continue to proceed with implementation steps for a new 5% transportation surcharge on solid waste hauler revenues by scheduling public hearings and council action as appropriate to meet operational implementation timelines for FY10. Also, direct the City Manager to proceed with scheduling a public hearing and action on proposed code amendments to expand the use of stormwater and wastewater user fees for road-related purposes. Option 3: Direct the City Manager to make changes or modifications to one or more of the proposed ordinances or the resolution before moving forward with implementation of the code changes. CITY MANAGER’S RECOMMENDATION “Option 2” reflects the City Manager’s recommendation. SUGGESTED MOTION Move to direct the City Manager to proceed with implementation steps for a new 5% transportation surcharge on solid waste hauler revenues by scheduling public hearings and council action as appropriate to meet operational implementation timelines for FY10. Furthermore, move to direct the City Manager to proceed with scheduling a public hearing and action on proposed code amendments to expand the use of stormwater and wastewater user fees for road-related purposes. ATTACHMENTS A. Projected Financial Impacts by Customer Category of a Proposed Transportation Surcharge on Solid Waste Haulers at the 5% Level B.An Ordinance Concerning Solid Waste Administrative Powers and Amending Section 3.250 of the Eugene Code, 1971 C.An Ordinance Concerning Wastewater and Stormwater Service and Amending Sections 6.411 and 6.421 of the Eugene Code, 1971 D.Examples of Service Impacts in a $4.0 Million Road Fund Budget Reduction Scenario by Order of Magnitude FOR MORE INFORMATION Staff Contact: Kurt Corey Telephone: 682-5241 Staff E-Mail: kurt.a.corey@ci.eugene.or.us Z:\CMO\2009 Council Agendas\M090408\S090408B.doc ATTACHMENT A Projected Financial Impacts by Customer Category of a Proposed Transportation Surcharge on Solid Waste Haulers at the 5% Level Current Rate5% Residential ServiceLess RebateSurcharge 20 gallon$ 10.75$ 0.54 32 gallon monthly$ 4.75$ 0.24 32 gallon every-other-week$ 12.90$ 0.65 32 gallon $ 19.70$ 0.98 60 gallon $ 35.45$ 1.77 90 gallon $ 44.20$ 2.21 Commercial Service 1 cubic yard$ 66.90$3.35 1.5 cubic yard$ 96.60$ 4.83 2 cubic yard$ 127.20$6.36 3 cubic yard$186.00 9$.30 4 cubic yard$ $ 12.09241.85 5 cubic yard$ 294.75$ 14.74 6 cubic yard$344.85$ 17.24 Residential Total Revenue $437,695.35 NOTE 1: These numbers represent estimates based on financial information from calendar year 2007. The economic impacts will likely decrease this amount of surcharge revenue. NOTE 2: On commercial accounts, a customer may have multiple pick-ups per week. They may also have more than one container. Additional containers are charged at a lower rate. Customer Categories & Typical Bills Typical MonthlyEst. Monthly * Hauler Charge Example Customer5% surcharge Dari-Mart$ 241.85$ 12.10 Capella$ 547.80$ 27.39 Safeway$ 1,100.00$ 55.00 Albertsons$ 1,400.00$ 70.00 ** Target$ 900.00$ 45.00 4-J Schools$ 22,000.00$ 1,100.00 Valley River Center$ 5,900.00$ 295.00 * Example customers and monthly charges provided by Sanipac ** These are averages and change from month to month, based on compactor/ drop box weights and seasonal services. Revised 3-30-09 ATTACHMENT B ORDINANCE NO. _______ AN ORDINANCE CONCERNING SOLID WASTE ADMINISTRATIVE POWERS AND AMENDING SECTION 3.250 OF THE EUGENE CODE, 1971. THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS: Section 1. Section 3.250 of the Eugene Code, 1971, is amended to provide as follows: 3.250 Solid Waste, Yard Debris and Recycling - Administrative Powers of the City Manager . (1) The rules adopted by the city manager under section 2.019 of this code concerning solid waste and recycling licenses may address, but are not limited to: (a) Minimum identification, maintenance and sanitation standards for collectors' vehicles; (b) Minimum standards relating to the qualifications, training and identification of collectors’ employees; (c) Minimum standards for all information to be included in collectors' records; (d) Minimum standards and procedures for collection service to assure quality of service to customers; (e) The establishment of rates for service and the procedure to be used in recommending and revising solid waste and recycling service rates; (f) The establishment of application requirements to be met before a license may be issued or transferred; (g) The establishment of application, license and license transfer fees that allow the city, at a minimum, to recover regulatory and enforcement costs associated with solid waste and/or recycling collection; (h) The establishment of fees for use of the public right-of-way by licensees and to offset the damage to the street system caused by collectors’ vehicles; (hi) The establishment of procedures, policies and operating practices which are required for implementation of this code; and (ij) The establishment of customer responsibilities that include, but are not limited to, payment responsibility; location of receptacles; time and manner of placement and retrieval of solid waste, recyclable materials and yard debris receptacles; the manner in which receptacles are loaded, and acceptable and unacceptable Ordinance - Page 1 of 2 ATTACHMENT B materials for specific receptacles, and the maximum weights for each. (2) Revenues from fees authorized pursuant to subsection (1)(h) of this section shall be deposited in the appropriate fund for road operations, to be used for the reconstruction, repair, maintenance, operation, and preservation of city-owned roads and streets within the city, roads and streets which the city is contractually or legally obligated to operate and maintain, or roads and streets for which the city has accepted responsibility under intergovernmental agreement. Revenues from fees authorized pursuant to subsection (1)(h) of this section shall not be used for capacity-enhancing street improvements. (2) 3 The city manager may adopt a solid waste systems benefit fee under section 2.020 of this code, or may enter into an intergovernmental agreement with Lane County to authorize Lane County to impose and collect within the city a solid waste systems benefit fee in the same amount that applies outside the city, to fund the cost of waste management programs and community services, including but not limited to recycling education, recycling drop-off facilities, special waste programs and facilities, solid waste transfer sites and technical assistance services for businesses. Section 2. The City Recorder, at the request of, or with the consent of the City Attorney, is authorized to administratively correct any reference errors contained herein, or in other provisions of the Eugene Code, 1971, to the provisions added, amended or repealed herein. Passed by the City Council this Approved by the Mayor this ____ day of _____________, 2009 ____ day of ___________2009. ____________________________ _____________________________ City Recorder Mayor 00219897.DOC;1 Ordinance - Page 2 of 2 ATTACHMENT C ORDINANCE NO. _______ AN ORDINANCE CONCERNING WASTEWATER AND STORMWATER SERVICE AND AMENDING SECTIONS 6.411 AND 6.421 OF THE EUGENE CODE, 1971. THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS: Section 1. Sections 6.411 and 6.421 of the Eugene Code, 1971, are amended to provide as follows: 6.411 Ratemaking . (1) Ratemaking procedure. (a) Investigation of proposed charges. Before proposing to impose or amend a charge for wastewater service, stormwater service or for regional wastewater treatment service, the city manager shall conduct an investigation of the revenue needs of the city in conducting these operations. Based on that investigation, and using the criteria set out in subsection 6.411(2), the city manager shall develop proposed charges for these services. (b) Notice. Prior to the imposition of any charge for wastewater service, stormwater service or regional wastewater treatment service, the city manager shall give notice of the proposed rate or charge by: 1. Making copies of the notice of intended charges available to the news media, to any person who has requested such notice, to the mayor and city councilors, and to interested governmental agencies (including the United States Environmental Protection Agency, the Department of Environmental Quality, the Metropolitan Wastewater Management Commission, and the Eugene Water & Electric Board). 2. Publishing notice of intended charges on two separate occasions in a newspaper of general circulation within the city. 3. Posting the notice at two locations at city hall. (c) Contents of notice. The notice of intended charges shall state the current and proposed charge, the results of the city manager's investigation, and the time, place and manner in which interested persons may present their views on the intended action. (d) Public hearing and opportunity to comment. No earlier than ten days after the first publication of notice of the intended charges, the city manager or the manager's designee shall conduct a public hearing on the proposed charge. The city manager shall give Ordinance - Page 1 of 5 interested persons reasonable opportunity to submit data or views in writing on the proposed charge. (e) Decision. The city manager, on the basis of his or her investigation and the comments of interested persons, shall approve, modify, or disallow the proposed charge by order. The order shall contain written findings and conclusions based on the standards set forth in subsection 6.411(2). The city manager shall mail copies of the decision to all persons who have submitted written or oral comments on the charge or who have requested a copy of the decision. The city manager shall also promptly deliver copies of the decision to the mayor and city councilors. Unless reviewed by the council, the decision is final on the eleventh day after it is rendered. (f) Review of decision. At the request of the city manager or a majority of the members of the council, made within ten days of the city manager's decision, the decision, or any part thereof, shall be reviewed by the council. The council may conduct a public hearing on the proposed charge or review the order solely on the basis of the administrative record before the city manager. After this review, the council shall approve, modify or disallow the proposed charge by order. The order shall contain written findings and conclusions based on the standards set forth in subsection 6.411(2), and shall be mailed to all interested persons. The order is final on the date rendered. (2) Standards. Unless the city manager determines in writing that one or more of the following factors is irrelevant or inapplicable, the amount or rate of any charge for wastewater service, stormwater service or regional wastewater treatment service shall be based on the following: (a) The amount charged for such service in the past; (b) For regional wastewater treatment services the recommendation, if any, of the Metropolitan Wastewater Management Commission, or any successor agency; (c) Applicable federal or state regulations or conditions imposed as part of a federal or state grant or financial assistance agreement; (d) The amounts charged or proposed to be charged by the city of Springfield and other providers of stormwater or wastewater services for comparable services; (e) The revenue needed to pay for the direct and indirect expected costs of constructing, operating, maintaining, and replacing local and regional sewerage facilities based on the adopted budgets of the city of Eugene and the Metropolitan Wastewater Management Commission or its successor, the debt obligations of the city or other entities for construction of the facilities, adopted capital improvement plans of the council, the expected need for financial reserves and contingencies, and other sources of revenue; (f) For an individual stormwater service customer that discharges stormwater that requires extraordinary expense to the city, special Ordinance - Page 2 of 5 surcharge rates based on the type, concentration, quantity, quality and frequency of the discharge. (g) Other relevant adopted policies of the council; (h) The terms of any applicable intergovernmental agreement relating to wastewater or stormwater services or regional wastewater treatment service; and (li) The obtaining of equity between different classes of customers so that one class of customers does not pay more than its proportionate share of the expenses of providing sewer service; and (j) In addition to the forgoing considerations, in determining the amounts or rates to be charged for stormwater and wastewater service, the city manager shall consider the value of the use and occupancy of the city’s right-of-way by the city stormwater system and city wastewater system. (3) If the city manager determines that one or more of the factors listed in subsection (2) of this section is irrelevant or inapplicable, the manager shall notify the mayor and council of that determination. (4) Limitations. The following limitations apply to charges set by the city manager for wastewater service, stormwater service and regional wastewater treatment service: (a) Charges shall be imposed on a monthly basis. Each customer shall be notified, in at least one annual billing for the service, of the rate or the amount of the charge and the allocation of revenue expected from application of the charge. (b) The charges for regional wastewater treatment service shall distinguish between the following classes of customers: single dwelling units, duplexes, and general wastewater customer use based on loading strengths. (c) The charges for local wastewater service may, but need not, distinguish between classes of customers. (d) The monthly charge for wastewater service and regional wastewater treatment service shall be a fixed fee together with a fee based on volume of use of water (partial flow- based rate). (e) When the wastewater service rate is based on volume, the volume shall be calculated by actual measurement of the wastewater discharged (the costs of measurement to be borne by the customer) or by an estimate based on the wastewater customer's average monthly water consumption during the previous December through April period, or, if no water consumption figures are available for at least three full months during this period, the consumption of other similar customers (for residential customers) or actual monthly water consumption (for non-residential customers). (f) The charges for stormwater service shall distinguish between the following classes of customers: small residential, medium Ordinance - Page 3 of 5 residential and general stormwater customer, based upon the actual number of equivalent service units for each developed property or an average number of equivalent service units for a specific class. Special surcharges for stormwater service customers who receive extraordinary service shall be in addition to the standard charges for the customer's classification. 6.421 Charges - Collection and Payment . The Eugene Water & Electric Board is directed to collect the charges provided for in sections 6.401 through 6.610. Charges levied pursuant to sections 6.401 through 6.610 shall be determined by the city manager or his/her designee and certified to the Eugene Water & Electric Board and any other water utility obligated to collect such charges. [All r]Revenue collected by the Eugene Water & Electric Board shall be paid monthly to the city and shall be deposited in the appropriate fund for wastewater operations or for stormwater operations for use in providing sewer service including debt service and such other services as the council may direct, except that revenue collected based on the criteria contained in subsection (2)(j) of section 6.411 of this code shall be deposited in the appropriate fund for road operations to be used for the reconstruction, repair, maintenance, operation, and preservation of city-owned roads and streets within the city, roads and streets which the city is contractually or legally obligated to operate and maintain, or roads and streets for which the city has accepted responsibility under intergovernmental agreement. Revenue collected based on the criteria contained in subsection (2)(j) of section 6.411 of this code may not be used for capacity-enhancing street improvements. Section 2. The City Recorder, at the request of, or with the consent of the City Attorney, is authorized to administratively correct any reference errors contained herein, or in other provisions of the Eugene Code, 1971, to the provisions added, amended or repealed herein. Section 3. Notwithstanding Section 6.421 of the Eugene Code, 1971, $500,000.00 from the fund for stormwater operations and/or the fund for wastewater operations may be used during FY 10 for the reconstruction, repair, maintenance, operation, and preservation of city-owned roads and streets within the city, roads and streets which the city is contractually or legally obligated to operate and maintain, or Ordinance - Page 4 of 5 roads and streets for which the city has accepted responsibility under intergovernmental agreement. Passed by the City Council this Approved by the Mayor this ____ day of _____________, 2009 ____ day of ___________2009. ____________________________ _____________________________ City Recorder Mayor 00219907.DOC Ordinance - Page 5 of 5 ATTACHMENT D Attachment D - Examples of Service Impacts in a $4.0 Million Road Fund Budget Reduction Scenario by Order of Magnitude Summary of Road Fund Services Likely to be Eliminated or Reduced in a $4 Million Reduction Scenario Urban Forestry Program $500,000 Street Lighting Maintenance & Operations – Arterial and Collector $438,000 Organizational, Department and Division Administration $413,000 Street Lighting Maintenance & Operations - Residential $377,000 Street Median Maintenance Program $300,000 Crack Sealing Program $298,000 Hazard Tree Inspection and Removal Program $200,000 Traffic Engineering Services $140,000 Signal Preventative Maintenance - Scale back $132,000 Striping, Spray Legends, and Raised Pavement Markers - Scale back 33% $125,000 Alternative Modes $112,000 Special Projects and Studies $109,000 Sidewalk Repair for ADA Standards $107,000 Concrete Streets and Alley Repair - Scale back 40% $100,000 Street Reconstruction - Scale back 50% $100,000 Sidewalk Repair for Private Hazards $88,000 Mapping and GIS Support $81,000 Non-Regulatory Sign Fabrication, Installation, Maintenance & Repair $80,000 Street Light and Signal Locates $79,000 Infrastructure Planning $75,000 Long Range Transportation Planning $57,000 Land Use/Development Review $54,000 Neighborhood Transportation Program $35,000 Total Budget Impact of Illustrative Service Reductions (26 FTE) $4,000,000