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<br />"revenue from taaces on:motor vehicle use and. fuel ., : shall be used exclusively for the constructiori;, ,~~ :
<br />reconstruction; improyement;_repair, maintenance; operation and use of public highways; roads;.streets and .
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<br />- ~~roadside rest~areas in this state.,' _ ~ ~ ~ '
<br />,Road Operations and Maintenance Needs - The city's Road Fund accounts for the aperation and mairitenance ~
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<br />,.. `-. of.Eugene's street system. Due to flat growth in state`revenues and loss of historical county road partnership
<br />' revenues, the Road Rund is currently expected to have an annual operaring deficit of over $1:8 million for ~ ~
<br />FY08 (growing to=$2:1' million by FY09); for ongoing.activities such as street lighting, pothole patching, ;. ~
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<br />street tree maintenance,.signin g and sfriping of city streets. ,. ;
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<br />'' Implementation Timeframe - The City's tax admiriistrator, the ODOT Fuels Tax Group in Salem, suggests~ ~." :,'.
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<br />~,~ that notice provided them as of the end.of January for the repeal of the sunset provision would be optimal for ~:`
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<br />.. their administration of this change in code and.also provide adequate time for notice .to: Eugene fuel dealers. .
<br />~.~ ~. For that reason,~ acfion is' requested on this proposed ordinance by January 28;; 2008. - ,.
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<br />RELATED CITY POLICIES . -
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<br />The council's Vision and Goals Statement with respect to Fair, ,Stable and Adequate Financial Resources ~. '
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<br />` ~~reaffirms commitment to "a loeal government whose ongoing finaneial resources are based on a fair and; ~
<br />.,. ~ equitable syatem of taxation and other revenue sources and are adequate to maintain and deliver municipal
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<br />services." In January 2007, the council,identified a n` ew council' goal-to "Develop mecfianisms.to adequately
<br />fund'our transportation system for cars; trucks, bikes, and,pedestrians including maintenance and ~
<br />~ ' preservation and capital reconstruction." YAdditionally, the City',s Financial Management Goals~and Policy, : `
<br />A:4, states that the City's municipal service priority Leve12 (second only to tlie preservation of the public ~ .~
<br />, safety system); is to~"maintain and replace the.City's fixed assets; wliich includes... infrastructure...so as to
<br />~ ' ` optimize their iife: ' - ' .
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<br />COUNCIL OPTIONS ' ~ .
<br />~ No,action is required of couricil at this, time, as this is a public hearing.
<br />However, on January 28, the City Council will have the following options before them with regard to this `~
<br />` ~ ` , proposed ordinance: ~ ~ . ,. . ,
<br />~__' Option l: Council. could decline to talce, action on the ordinance, choosing to ~make no changes to the ,~
<br />Eugene Code and effectively allowing the motor vehicle fuel taxrate to revert to three cents per~gallon; ,~ P °_
<br />Option 2: Council, could approve the proposed amendments to the Eugene Code to, repeal the, sunset .~
<br />~. provision enacted in 2005; effectively leaving the fuel tax rate at five cents per gall'on for an indefinite ~
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<br />: period; or .: ~ . , : . . , . ~
<br />' hon 3: CounciT could extend the sunset to some date certain e. ~Febru 28 2011) leavin the fuel ::_`
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<br />~. tax at five cents er a11on for a s ecified additional period,,in order to allow for sufficienf fime to .
<br />`~ ' ~ implement other elements of the package funding strategy. ~ ' ` . ° ` ~. °
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<br />CITY MANAGER'S RECOMMENDATION. , ~ :
<br />No recomrnendation, is offered, as this is a public hearing. ~~ '
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<br />• 1 F:\CM0~2008 Council AgendasW1080114\50801146.doc
<br />. ~ City Council Agende page 103 .
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