FY 2006-11 Eugene CIP - Laserfiche WebLink

New Search

Funding Outlook The Road Fund provides no funding in this CIP for capital needs over the next six years. This ~ reflects Lane County's planned reductions in the County/City Road Partnership Agreement, no increase in the state gas tax for the past 12 years, and the ongoing needs for road system operations and maintenance in the Public Works Department's operating budget. For the :I ~ Transportation System Development Charge Fund, revenues from system development charges ! ` fluctuate based on annual development activity. In October 2001, the Citizen's Subcommittee on Transportation System Funding presented its recommendation that the council implement a transportation funding package consisting of a combination local motor vehicle fuel tax and transportation system maintenance fee for the purpose of generating an additional $9 million annually to address the City's critical transportation system funding needs. As a result of that recommendation, on January 29, 2003, a , local motor vehicle fuel tax ("fuel tax"), was approved by council at the 3-cent level, which is currently generating over $2 million per year. In January 2005, the City council adopted an ordinance increasing that local motor vehicle fuel tax from the initial $0.03 per gallon to $0.05 per gallon through February of 2008, an action which is expected to generate an additional $1.45 ~J ~ million for pavement preservation in FY06. ~ Also in keeping with the Citizen Subcommittee recommendation, on December 9, 2002, the council approved an ordinance establishing a transportation system maintenance fee (TSMF). On September 8, 2003, the council voted to repeal the TSMF ordinance, citing the repeal by Springfield City Council of that city's TSMF and concerns about equity between the two cities, ' as well as concerns raised by the Eugene Chamber of Commerce about the structure and impact of the TSMF on Eugene businesses. Council also cited continued hope for collaborative solutions with partner agencies. As a result of discussions with those interagency partners, Lane County has chosen not to ~ explore either acounty-wide motor vehicle registration fee or a county-wide motor vehicle fuel tax. However, in May 2004 the Board of County Commissioners authorized the transfer of all of Lane County's road operations, maintenance and preservation allocation from the 2003 Oregon Transportation Investment Act (OTIA III) to the cities of Lane County for up to three years, and the City of Eugene will receive approximately $500,000 in FY06 from the County under this agreement. Together with the reimbursement component for the transportation SDC approved by council in FY02, these revenue sources are projected to generate $4.47 million for the pavement preservation program in FY06. In addition to the pavement preservation funding, ` $388,000 in federal monies and $97,000 in local matching monies is dedicated to bike path - preservation and maintenance--for a total of nearly $5.0 million in transportation system preservation and maintenance projects in the FY06 Capital Budget. l When the Budget Subcommittee on Transportation Funding presented their report to council in late 2001, the City was facing an estimated $67 million backlog in pavement preservation work, as confirmed by an independent consultant. The backlog has since grown to a current level of nearly $94 million. While the revenue level discussed above is still short of the target identified by the Citizen Subcommittee, it will allow the city to slow, and even begin to reverse, the alarming growth trend in the pavement preservation backlog. City of Eugene 2006 - 2011 Capital Improvement Program ' i~.~ 129 _ _