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