Post on 30-Dec-2015
description
The IssueThe Issue• The Problem:
Greater need for street preservation & maintenance than current revenues can support
• The Need/Goal:New, locally-controlled sources of revenue
• Proposed Revenue Sources:Local fuel tax
(Other Possible Sources)
We all benefit from our transportation system
Everyone Uses Everyone Uses It….It….
• Directly– As drivers, bicyclists, transit users, pedestrians
• Indirectly– To receive goods and services
Why Streets Why Streets MatterMatter• Streets are the circulatory system of the city
− critical to the health of the community
• When streets are not properly maintained we all pay− shipping− services− our cars− lost time − future street maintenance
• Increased driver costs: You pay more for tires, steering alignments… and more accidents!
Direct Cost to You:Consequences of deferred maintenance
• Estimated up to $320 a year per driver in increased costs*.
Why Streets Why Streets MatterMatter
*Data from T.R.I.P.’s 2002 report“Rough Ride in the City”.
Why Streets Why Streets DeteriorateDeteriorate
Age• Designed to last at least 20 years with proper maintenance
• UV rays, oxidation, temperature fluctuations & weather conditions
Use• Weight/movement of traffic• Studded tires
Early DeteriorationEarly Deterioration
• Raveling – roughening of surface
• Small cracks • Sealing individual cracks
• At 5 years – slurry seal entire surface
Moderate Moderate DeteriorationDeterioration
• Cracks extending deeper & further along surface – which means water starts to penetrate
• Rutting – (surface depression associated with tire placement) caused by shifting weight of vehicles
• Overlay reseals surface & adds structural strength
• Done every 10-15 years
• Overlay cost: $330,000/mile
Extensive Extensive DeteriorationDeterioration
• Base failure• Alligator Cracking• Potholes
• Reconstruction: the only option
• 5 times more expensive
• More disruptive
Temporary RepairsTemporary Repairs
• Thin lift overlays
• Pothole patching
Now, because of local budget constraints, many communities have been utilizing temporary repairs – putting off the kind of maintenance that should be done until the funds are available. Done for safety reasons these repairs last a couple of years or less. But these “Band-Aids” were never intended to be permanent solutions.
Taking Care of Streets = Like Taking Care of Your Car
Financial Financial PerspectivePerspective
Well maintained = safe & reliable
Street Street Maintenance /Maintenance /
Skip maintenance = big problems later
Pay Some Now ~ or Pay Lots More Later!
STREET CONDITION MILEAGE COST Sub-Standard 3.65 miles $ 390,632
Very Poor 1.47 miles $ 1,376,438
Poor 5.56 miles $ 775,845
Fair 15.61 miles $ 352,774
Total 26.29 miles 64% Fair/Very Poor
Street InventoryStreet Inventory
The Revenue The Revenue ProblemProblem
Current Street fund revenues are not enough to cover Cottage Grove’s street preservation &
maintenance needs
Street Fund Street Fund Revenue & Revenue &
ExpendituresExpenditures
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
1999 2000 2001 2002
Revenue ($ In)
Spending ($ Out)
Street Fund ActivitiesStreet Fund Activities2002-2003 Budget
Total Street Fund $1,179,123
ExpendituresStreet Maintenance $386,755Street Sweeping $56,107Street Improvements/Cap. $497,722
Non-Departmental $60,158Transfer Bike Path Fund $85,231Transfer to Debt Service $28,389Contingency/Ending Balance $64,761
Current Sources of Revenue
• State gas tax
• County revenue sharing
• Federal Urban Aid
*Property taxes are NOT used for ongoing maintenance of Cottage Grove’s streets
Financial Financial PerspectivePerspective
Street Fund Revenue Street Fund Revenue Sharing Sharing
to Cottage Groveto Cottage Grove
$0$50,000
$100,000$150,000$200,000$250,000$300,000$350,000$400,000
91-9
2
92-9
3
93-9
4
94-9
5
95-9
6
96-9
7
97-9
8
98-9
9
99-0
0
00-0
1
'01-
02
County Road Funds State Gas Tax Federal Gas Tax
• Main source of revenue
• Hasn’t increased since 1993
• Currently 24¢ per gallon
State Gas TaxState Gas Tax
*Cottage Grove receives less than 1 penny for every dollar of state gas tax
If people drive more, why hasn’t gas tax revenue increased?
State Gas TaxState Gas Tax
=gas consumption has remained flat over the years
more miles traveled + more fuel efficient cars
• Has declined in recent years.• Dependent on County Financial Health (creates uncertainty).• Some of County funding is subject to Congressional action (creates more uncertainty).
County Revenue County Revenue SharingSharing
Inadequate revenue + growing need = backlog of deteriorating streets
Financial Financial PerspectivePerspective
Alternative Revenue Options:
Possible Revenue Possible Revenue SourcesSources
• Local motor fuel tax•Other possible local or County-wide
revenues
• Each penny of local gas tax generates about $42,000 a year.• Related to how much people drive on streets.
Local Fuel TaxLocal Fuel Tax
• Visitors/non-residents help pay for roads they use.• Like State Fuel Tax will be affected by fuel usage.
Local Fuel TaxLocal Fuel Tax
• Would pay $5.70/year in a local area fuel tax if one penny of local gas tax were added
An average area driver, whose car gets 21 miles to the gallon and drives an average of 12,000 miles a year uses 570 gallons of gas a year:
• All of this money would go to Cottage Grove
Other Cities With a Other Cities With a Local Fuel TaxLocal Fuel Tax
CITY Passage Date Rate 2002-03 Revenue
Eugene Jan. 2003 $.03/gallon $2,000,000
Pendleton 1999 $.02/gallon $64,000
Sandy Jan. 2003 $.01/gallon $100,000
Springfield 2003 $.03/gallon $750,000
Stanfield 1999 $.01/gallon $127,800
The Dalles 1986 $.03/gallon $300,693
Tillamook 1982 $.015/gallon $127,000
Woodburn 1989 $.01/gallon $107,000
Transportation Utility Fee
• More stable, long-term revenue solution.
• Not affected by fuel economy or new energy
sources.
• All users of the transportation system will pay
regardless of mode of transportation.
• Assessment is based on volume of use of the
transportation system.
Other Possible Other Possible RevenuesRevenues
Who Uses Transportation Utility Fees?
• La Grande – 1985• Ashland – 1986• Tualatin – 1990• Eagle Point – 1990• Medford – 1991• Phoenix – 1994• Wilsonville - 1997
• Talent – 2000• Hubbard – 2001• Sandy – 2002• Grants Pass – 2002
Other Possible Other Possible RevenuesRevenues
• Can only be imposed by a County and must be approved in a countywide vote.
• State Statute requires that at least 40% of the proceeds be shared with the incorporated cities.
• ORS limits the fee to no more than $15/year. • Would reflect the number of vehicles on the
road.• Revenue can only be used for street and road
purposes.
Countywide Vehicle Registration Fee
• Increased cost for bad streets = $320 a year
Individual CostIndividual Cost
• Cost of gas tax = $16.80/ year
oror
ConclusionConclusion
We need to create our own solutions to preserve area streets and control the
fate of our transportation system.
• Fuel Tax was implemented August 1, 2003
• August collections in Cottage Grove were $20,875*
• September collections in Cottage Grove were $23,747*
• Total implementation costs have been less than $4,000
• Estimates indicate possible annual collections of $237,000
*Before refunds and implementation costs
Where are we now?Where are we now?
Which will go directly to road improvement projects