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<br />"revenue from taxes on motor vehicle use and fuel ... shall be used exclusiyely for the construction, ~~~
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<br />reconstruction, improvement, repair, maintenance, operation and use of public highways, roads; streets and
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<br />~ roadside rest areas` iri this state." ` ~ s !'
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<br />Road Operations and Maintenance Needs - The City's Road Fund accounts for the operation and ;
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<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
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<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~~
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<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
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<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'',,
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<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
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<br />maintain and replace the City
<br />safety system) is to
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<br />optimize their life." I;
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<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~;
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<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
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<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~ ~'`' '
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<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'~
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<br />period. ~ '~ '
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<br />City Council Agenda.page 168 i, r S4
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