Item B: Comprehensive Transportation Funding Solutions and a Street Utility Fee

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Work Session: Comprehensive Transportation Funding Solutions and a Street Utility Fee Meeting Date: July 15, 2009 Agenda Item: B Department: Public Works Staff Contact: Kurt Corey www.eugene-or.gov Contact Telephone Number: 682-8421 ISSUE STATEMENT The purpose of this work session is to provide the council with an opportunity to discuss the concept of a street utility fee as one potential component of a comprehensive, locally-controlled funding package to support operations, maintenance, preservation and reconstruction of Eugene’s transportation system. The council is being asked to provide direction on the questions of whether or not to pursue further development of a street utility fee at this time, and if so, under what basic fee design assumptions that effort would move forward. BACKGROUND Previous Council Action and History In December 2002, the council adopted a trip-generation-based street utility fee. Before it could be fully implemented, the council repealed the ordinance in September 2003. In May 2007, the Council Committee on Transportation Funding recommended a street utility fee based on parking spaces as one component in a package of transportation funding solutions. In November 2007, the council was presented with an update on the efforts to develop a parking-based street utility fee. Since 2007, staff, council and the community have made progress on a number of transportation funding efforts, including the following: ? In November 2007, voters rejected a proposed three-cent increase in the local gas tax. ? In January 2008, the council approved a three-year extension to the two-cent portion of the local gas tax. ? In spring 2008, the Eugene Budget Committee recommended and the council approved a two-time, $1.0 million annual allocation of resources for enhanced street repair services in FY09 and FY10. ? In November 2008, voters approved a five-year, $35.9 million street repair bond measure. ? In April 2009, the council endorsed the use of $1.4 million in FY10 local gas tax revenue to fund an FY10 projected budget deficit of $2.8 million in street operations and maintenance services. ? In April 2009, the council approved the use of $500,000 in FY10 stormwater and wastewater funds to help address the projected budget deficit in street operations and maintenance services for FY10. ? Also in April 2009, the council adopted an ordinance directing the City Manager to consider as one of the factors in setting future wastewater and stormwater user fees the value of the use and occupancy of the City’s right-of-way by those local systems. Z:\CMO\2009 Council Agendas\M090715\S090715B.doc