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HomeMy WebLinkAboutItem 01 Potential Lane County Vehicle Registration Fee AGENDA ITEM SUMMARY Meeting Date: 11/17/2014 Meeting Type: Work Session Staff Contact/Dept.: Anette Spickard/DPW Staff Phone No: 726-3697 Estimated Time: 30 minutes S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Maintain and Improve Infrastructure and Facilities ITEM TITLE: POTENTIAL LANE COUNTY VEHICLE REGISTRATION FEE ACTION REQUESTED: Provide feedback on the County’s proposal ISSUE STATEMENT: Council will receive a presentation from Lane County staff regarding the Lane County Road Fund and a proposal to establish a countywide vehicle registration fee. Council’s feedback on the proposal is requested by the county. ATTACHMENTS: 1. Council Briefing Memorandum 2. Lane County PowerPoint presentation DISCUSSION/ FINANCIAL IMPACT: The Lane County Board of Commissioners (Board) unanimously directed Lane County Public Works staff to seek a recommendation from the Roads Advisory Committee (RAC) to restore revenue to the County’s shrinking Road Fund, favoring a solution that would also address similar road fund challenges regional partners within Lane County are experiencing. The RAC, a citizen committee of five Board appointees and two at-large members, met on August 27, 2014 and discussed a variety of revenue options. At the conclusion of their discussion, the RAC unanimously recommended the Board pursue a County Vehicle Registration Fee. Under a County Vehicle Registration Fee, a minimum of 40 percent of the funds are distributed to the cities within the County per statute. The Board heard and concurred with the RAC’s recommendation on September 30th, directing staff to conduct research regarding the details of implementing a Vehicle Registration Fee, including public opinion information and specific data regarding the amount of the fee to be considered. The City of Springfield has an estimated $4.5 Million unmet need for street preservation as previously shared with Council at the June 9, 2014 work session. It is estimated that the City’s share of the Vehicle Registration Fee under this proposal would be approximately $1 Million annually. The County’s current proposal allocates revenue to the cities at the minimum 40% level. M E M O R A N D U M City of Springfield Date: 11/7/2014 To: Gino Grimaldi COUNCIL From: Len Goodwin, DPW Director Anette Spickard, DPW Deputy Director BRIEFING Subject: Potential Lane County Vehicle Registration Fee MEMORANDUM ISSUE: Council will receive a presentation from Lane County staff regarding the Lane County Road Fund and a proposal to establish a countywide vehicle registration fee. Council’s feedback on the proposal is requested by the county. COUNCIL GOALS/ MANDATE: Maintain and Improve Infrastructure and Facilities BACKGROUND: Lydia McKinney, Lane County Transportation Planning Manager, presents the following information for Council’s consideration: Revenues for the Lane County Public Works Road Fund are declining due to several years of balancing revenues and expenses by reducing staff and reserves. The Road Fund is currently facing a structural imbalance of approximately $9 million per year, which is supplemented by depleting the County Road Fund reserves. Without a method to sustainably restore adequate revenue to the Road Fund, the County will see a sharp degradation of its road system, reduced ability to respond to storm and catastrophic events, and reduced ability to partner with local, state and federal agencies on grant and special funding opportunities. The County recognizes that cities within Lane County share this road fund challenge. This as a regional challenge that needs a regional solution. In response to the declining Road Fund projections, the County Roads Advisory Committee (RAC) and Public Works staff had researched and considered several potential options to restore revenue to the Road Fund. On August 5, 2014, the Lane County Board of Commissioners (Board) unanimously directed Public Works staff to seek a recommendation from the Roads Advisory Committee (RAC) to restore revenue to the County’s shrinking Road Fund, favoring a solution that would also address similar road fund challenges regional partners within Lane County are experiencing. The RAC, a citizen committee of five Board appointees and two at- large members, met on August 27, 2014 and discussed a variety of revenue options. At the conclusion of their discussion, the RAC unanimously recommended the Board pursue a County Vehicle Registration Fee (VRF). Under a County VRF, 40 percent of the funds are distributed to the cities within the County. The Board heard and concurred with the RAC’s recommendation on September 30th, directing staff to conduct research regarding the details of implementing a VRF, including public opinion information and specific data regarding the amount of the fee to be considered. At the November 4th Board meeting, Dr. Gary Manross from the Strategic Research Institute presented the results of the polling conducted in October 2014. The polling results indicate that 62 percent of voters prefer a modest fee increase to reducing road services. While there was not enough support for the maximum amount allowed ($43/year), there is likely 57.5 percent voter Attachment 1, Page 1 of 2 MEMORANDUM 11/12/2014 Page 2 support for a $35 per year increase presuming the ballot language be carefully crafted and public outreach stay focused on the voters’ main concerns: road safety and cost efficient maintenance and preservation of roads and bridges. In addition, the Board found that public accountability for the County’s VRF was an important factor in the potential success of a VRF. Based on these results, the Board directed staff to do the following: • Prepare a draft Ordinance for a local registration fee ($35 for passenger vehicles, light trailers and trucks under 26,000 lbs.; and$20 for motorcycles) to be placed on the May 2015 ballot. • Coordinate with Cities for their input and support. • Establish a citizen oversight committee and annual audit for County projects. • Prepare a voter’s pamphlet for the proposed fee. Lane County staff will present this information and details of the polling results to the Springfield City Council for their review and input. RECOMMENDED ACTION: Provide feedback to county staff regarding the vehicle registration fee proposal. Attachment 1, Page 2 of 2 Lane County Regional Road Fund Revenue Restoration City of Springfield November 17, 2014 Attachment 2, Page 1 of 22 Discussion Overview Background Lane County Road Fund Corrective Actions to Date Current Challenges Revenue Options Regional Solution Attachment 2, Page 2 of 22 Background August 5 – Board of County Commissioners (BCC) updated on shrinking Road Fund and increasing needs. BCC directs staff to Roads Advisory Committee (RAC) for solutions. August 27 - RAC reviews revenue options and makes unanimous recommendation to be presented to BCC. September 30 – Board directs staff to research viability of a Vehicle Registration Fee (VRF) November 4 - BCC directs County staff to prepare Ordinance and seek letters of support from Cities. November 12 – BCC provides additional direction on elements of a VRF Attachment 2, Page 3 of 22 Forest and SRS Payments Attachment 2, Page 4 of 22 What Makes up the State Highway Fund? Attachment 2, Page 5 of 22 Corrective Actions 35% reduction in employees since 2000 50% reduction in reserves since 2000 Consolidated & re-organized departments for efficiency Used innovative technologies to lower costs Aggressively seek grants and partnerships to leverage resources Attachment 2, Page 6 of 22 Corrective Actions But even with all these corrective actions the need to replace revenue has reached critical level. Sometimes called “The Tipping Point” Attachment 2, Page 7 of 22 Current Challenges Operating Revenues: $29 M Operation Expenses: $38 M Net Road Reserves: ($9 M) Reserves Reduction: $9 Million Attachment 2, Page 8 of 22 Reserves for Disaster Response Attachment 2, Page 9 of 22 Pay Now or Pay Much More Later Attachment 2, Page 10 of 22 Pay Now or Pay Much More Later Pavement Condition Index Backlog of Maintenance Needs Attachment 2, Page 11 of 22 Regional Issue/Regional Solution Road maintenance and preservation is a regional issue. Public doesn’t perceive a difference between a city and county road. Public wants a functioning system. Attachment 2, Page 12 of 22 Revenue Options Grant Writer (complete) County Road Bonds Transportation Utility Fee Transportation Service District Property Tax Local Option Levy Local Gas Tax Local Vehicle Registration Fee Attachment 2, Page 13 of 22 Vehicle Registration Fee was recommended unanimously by the Roads Advisory Committee and BCC because: Regional solution to a regional issue 40% collected goes to Cities Certainty of funding – stable compared to decreasing gas tax System Fee Directed to road use only Ease of administration County Recommendation Attachment 2, Page 14 of 22 Distribution Based on % of Lane County Population – Springfield would receive approximately $1,012,000 per year Eugene 61.29% Springfield 23.17% Cottage Grove 3.78% Florence 3.28% Junction City 2.11% Creswell 1.93% Veneta 1.78% Oakridge 1.24% Dunes 0.51% Lowell 0.41% Coburg 0.40% Westfir 0.10% Regional Solution Attachment 2, Page 15 of 22 ORS specifies that, unless specifically exempted (i.e. farm vehicles), VRF must be imposed equally to all vehicle classes (motorcycles only exception). ORS precludes County from applying to trucks over 26,000 lbs. The provision for a County VRF was agreed upon by a diverse group of statewide stakeholders. Counties with a population of over 350,000 may impose a VRF or refer it to voters. Funds are restricted to road purposes within the public right-of- way. How Can a VRF be Applied? Attachment 2, Page 16 of 22 Attachment 2, Page 17 of 22 Attachment 2, Page 18 of 22 Attachment 2, Page 19 of 22 Attachment 2, Page 20 of 22 The County seeks support from regional partners for a modest increase of $35.00 annually ($20 for motorcycles). The County is Seeking Support Attachment 2, Page 21 of 22 Questions? Attachment 2, Page 22 of 22