~,, 'I <br />~F <br />' ' . . . ' ' , ' ~ ~ . . . . ~~! ,. !~, . .: <br />' <br />. .~ ,. . .. . , ' , . . ' ` ' . ' . , . ' ~''_. . . . . • . <br />- . , ~ . . . . ' . . ' ' ' . ' . . ~• . ~ :~' ~I . ~~~ ' ~ <br />' i ~ _ ~ ~~~ ' 'I <br />"revenue from taxes on motor vehicle use and fuel ... shall be used exclusiyely for the construction, ~~~ <br /> <br />, <br /> <br />~ . . <br />. . <br />reconstruction, improvement, repair, maintenance, operation and use of public highways, roads; streets and <br />~ ; <br />~~ . <br />, <br />~ roadside rest areas` iri this state." ` ~ s !' <br />; <br />, <br />, ' {~, <br />i! <br />Road Operations and Maintenance Needs - The City's Road Fund accounts for the operation and ; <br />~ <br />maintenance of Eugene's street system. Due to flat growth in state revenues and loss of lustoncal co ,unty <br />road partnership revenues, the Road Fund is currently. expected to have an annual operating deficiY of~;over <br />$1.8 million.for FY08 (growing to $2.3 million by FY10) for ongoing activities such as str~eet lighting, <br />~ pothole patching, street tree maintenance, signing and striping of city streets. At some poixit, the council will <br />be faced with a decision to either reduce the current service levels of road operations and maintenance <br />acrivities or dedicate a portion of new or existing funding sources to" maintaining the servic~e levels. I <br />~~ <br />' ~ ~~ ~~; ~ '"~ <br /> <br />~ <br />Implementation Timeframe - Our tax administrator, the ODOT Fue1S Tax Group in Salem, ~suggests that <br />notice provided them,as of the end of January for the repeal of the sunset proyision would be optimal for <br />their administration of this change in code and also provide adequate time for notice to Eugene fuel dealers. <br />For that reason, action is requested on one or the other of the proposed ordinances tonight. ~; i, I~~ <br />~ ~ . ~~ i'~ ~ ~' <br />~~ ~ ~ <br />, - <br />, <br />. <br />RELATED CITY POLICIES ~ ~ ~ ~ ~ ~ i :~t ~~'~~~ ~ <br />The council's Vision and Goals Statement with respect to Fair, Stable and Adequate Financial Resources <br />financial resources are based~ on a fair and <br />l governnient whose ongoin <br />nt t <br />" <br />l <br />m <br />it <br />r <br />ffi <br />c <br />' <br />g <br />o <br />a <br />oca <br />rms <br />o <br />m <br />me <br />ea <br />equitable system of taxation and other.revenue sources and are adequate ~to maintain and deliver' muni~cipal <br />services." In January; 2007, the council identified a new council goal to "Develop mechanisms to adequately <br />fund our transportation system for cars, trucks, bikes, and pedestrians including maintenance and a'',, <br />~ <br />preservation and capital reconstruction." Additionally, the City's Financial Management Goals' and Policy; <br />A.4, states that the City's municipal service priority Leve12 (second only to the preservation of the public <br />r <br />~ <br />u <br />' <br />" <br />e. .. so <br />, as to <br />ctu <br />s fixed assets, which includes. .. infrastr <br />maintain and replace the City <br />safety system) is to <br />" <br /> <br />;, <br />optimize their life." I; <br />+: <br />~;, ' '4 <br />' I, a <br />' <br />j <br />COUNCIL OPTIONS , ~i ~; '~' <br />The council has the following options: '~ ;~ ~. <br />1. Council could decline to take action on either proposed ordinance, choosing to make no ~changes to~the <br />Eugene Code and effectively allowing the city's motor vehicle fuel t~ rate to revert to thre"e cerits per~;,' <br />gallon; {; i; i~; <br />, <br />, <br />2. Council could approve the proposed code amendments as shown in Attachment A to extend tlie sunset <br />provision for three additional years to February 28; 2011, leaving the fuel tax at five cents per g~a11on f,or an <br />fr <br />t <br />rid f <br />ui <br />a <br />ar <br />additional three yeazs; in order to allow sufficient time for state legislative efforts to bear <br />development and implementation of other elements of the council package funding strategy; or I~ ~'`' ' <br />- ~~ il 3.: ' <br />3. Council could approve the proposed code amendments as shown in Atfachment B to repeal the sunset <br />provision enacted in 2005, effectively leaving the fuel tax rate at five cents per gallon for ari indefinite'~ <br />~ ~~. <br />. <br />period. ~ '~ ' <br />I, ii ~,' <br />, <br />. ~ ,; il, , <br />y; ~_ {~ <br />~'s <br />~ <br /> <br />• <br />doc <br />~~ F:\CI4I0~2008 Council AgendasVv1080128~50801284~ <br />~ <br />~ <br />~ ~ <br />- ~ ~ _ ~ j; fi <br />_ - ~ ~, <br />City Council Agenda.page 168 i, r S4 <br />, j, <br />. ~, <br />. j!,. ;, '': <br />, , i',~ <br />ii ~ , > <br /> <br /> <br /> <br />~ <br />