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EUGENE CITY COUNCIL <br /> AGENDA ITEM SUMMARY DISCUSSION DRAFT 1/23/06 -- EUGEfiE <br /> Work Session: Strategies for Long -Term Financial Stability for Transportation System <br /> Operations, Maintenance, and Preservation <br /> Meeting Date: February 15, 2006 Agenda Item: B <br /> Department: Public Works Staff Contact: Kurt Corey <br /> www.ci.eugene.or.us Contact Telephone Number: 682 -5241 <br /> ISSUE STATEMENT <br /> This work session provides an opportunity for council to review and discuss potential revenue strategies <br /> for helping to ensure the long -term financial stability for the operations, maintenance and preservation of <br /> the city's transportation service system. <br /> Potential alternative wording for the worksession goal:... to address not only the projected ongoing <br /> operating deficit in street operations and maintenance but to also generate additional revenue to be <br /> dedicated to the backlog of unfunded projects in the Pavement Preservation Program. <br /> BACKGROUND <br /> Previous Council Action and History <br /> In September 2001, the Citizen Budget Subcommittee on Transportation System Funding presented its <br /> Final Recommendation on Transportation Funding Issues which contained among its conclusions the <br /> assertion that "In the face of projected O &M shortfalls and service reductions beginning in FY03, <br /> ensuring adequate funding for the operation and maintenance activities of the City's transportation system <br /> is absolutely essential." At that time, the Citizen Budget Subcommittee also presented its <br /> recommendation that the council implement a transportation funding package consisting of a combination <br /> local motor vehicle fuel tax and transportation system maintenance fee for the purpose of generating an <br /> additional $9 million annually to address the City's critical transportation system funding needs. <br /> On December 9, 2002, the council approved an ordinance establishing a transportation system <br /> maintenance fee (TSMF). On January 27, 2003, a related transportation revenue measure, the local motor <br /> vehicle fuel tax ( "fuel tax "), was approved by council. On September 8, 2003, the council voted to repeal <br /> the TSMF ordinance, citing the recent repeal by Springfield City Council of that city's TSMF and <br /> concerns about equity between the two cities, as well as concerns raised by the Eugene Chamber of <br /> Commerce about the structure and impact of the TSMF on Eugene businesses. At that time, the council <br /> also cited continued hope for collaborative solutions with partner agencies and with Lane County, in <br /> particular. <br /> On January 24, 2005, Council approved a two -cent increase to the city's local motor vehicle fuel tax, <br /> which has allowed the City to continue to make progress on the backlog of pavement preservation <br /> projects in Eugene. This tax increase was approved with a sunset date of February 25, 2008, at which <br /> time the tax is scheduled to revert to $.03 per gallon. <br /> 1 <br />