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... •. •. •- <br /> 1. 1 111 •- - ' <br /> Cost reductions of $850,000 were implemented in the Road Fund in FY04, primarily through elimination <br /> of the in -house street overlay program and organizational restructuring and consolidations of Public <br /> Works divisions and work crews, which resulted in the elimination of supervisory positions. These cost <br /> reductions were implemented as a partial remedy for stabilizing the O &M activities for the city's road <br /> system, with the hope that additional revenue sources for O &M activities would eventually be realized as <br /> an outcome of the council's ongoing work with transportation funding. However, insufficient additional <br /> resources have been identified to date, while at the same time the fund continues to experience rapid <br /> growth in operating costs. In FY07, the Road Fund is expected to generate a $535,000 operating deficit in <br /> the course of providing basic O &M activities such as street lighting, pothole patching, street tree <br /> maintenance, signing and striping and more. Based on current projections, that annual deficit would grow <br /> to nearly $2 million in FY08 when the County /City Partnership transfer is scheduled to be discontinued. <br /> - . _ . _ <br /> Pavement Preservation Program - On the capital side of the program, the implementation of a 3- cent -per- <br /> gallon local motor vehicle fuel tax in August 2003 (raised to 5 cents in January 2005) has allowed the city <br /> to begin addressing the significant backlog of pavement preservation projects in Eugene. {Include some <br /> statistics here about what we've accomplished in the PPP since August 20031 However, this backlog, <br /> estimated at nearly $100 million as of the end of 2005, continues to grow. Additional funding is still <br /> needed to reverse this trend and to do the repair work necessary to ensure the efficient and safe operation <br /> of our local transportation system. In their report to council in October 2001, the Citizen Budget <br /> Subcommittee recommended an overall revenue target of $9 million annually to address this high - priority <br /> funding need. An additional $X.X million in annual revenue is needed to meet that target funding goal. <br /> Citizen Budget Subcommittee Conclusions, June 2001 - As part of their two -year study of Eugene's <br /> transportation funding issues and deliberations on possible new funding alternatives for the City's unmet <br /> transportation needs, the Citizen Budget Subcommittee reviewed over 20 potential revenue sources in <br /> broad categories ranging from assessment mechanisms, property tax -based options, carious forms of <br /> excise taxes, utility /user fees, as well as more traditional general municipal revenue sources. Additional <br /> revenue sources were suggested by subcommittee members and researched by staff. Staff prepared more <br /> in -depth analysis on those alternatives selected by the subcommittee for further study, and these were <br /> further studied and discussed at subsequent subcommittee meetings. At the end of their deliberations, the <br /> subcommittee agreed that "the most effective transportation funding package would consist of a <br /> transportation utility fee and a motor vehicle fuel tax. These measures are capable of raising adequate <br /> 3 <br />