Preserving Cottage Grove’s Streets City of Cottage Grove Preserving Cottage Grove’s Streets

The 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 It…. Directly – As drivers, bicyclists, transit users, pedestrians Indirectly – To receive goods and services

Why Streets Matter 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 Matter *Data from T.R.I.P.’s 2002 report“Rough Ride in the City”.

Why Streets Deteriorate 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 Deterioration Raveling – roughening of surface Small cracks Sealing individual cracks At 5 years – slurry seal entire surface

Moderate Deterioration 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 years Overlay cost: $330,000/mile

Extensive Deterioration Base failure Alligator Cracking Potholes Reconstruction: the only option 5 times more expensive More disruptive

Temporary 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.

30 Year Tale of Two Streets With Preservation Without Preservation $ Now $ Now $$$$$ Later $$$$$ Later Good/Fair Condition Good/Fair Condition Poor/Failed Condition Poor/Failed Condition

( * Continued maintenance and preservation delays reconstruction of Street A to 50 years) 30 Year Tale of Two Streets

Taking Care of Streets = Like Taking Care of Your Car Financial Perspective Well maintained = safe & reliable Street Maintenance / Skip maintenance = big problems later Pay Some Now ~ or Pay Lots More Later!

Street Inventory

Q Street West Main Street

East Main Street

Adams Street R Street Polk Street

Current cost to address deterioration: $2.5 Million...and rising every year

The Revenue Problem Current Street fund revenues are not enough to cover Cottage Grove’s street preservation & maintenance needs

Street Fund Revenue & Expenditures

Street Fund Activities Budget Total Street Fund $1,179,123 Expenditures Street Maintenance$386,755 Street Sweeping $56,107 Street Improvements/Cap. $497,722 Non-Departmental $60,158 Transfer Bike Path Fund $85,231 Transfer to Debt Service $28,389 Contingency/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 Perspective

Street Fund Revenue Sharing to Cottage Grove

Main source of revenue Hasn’t increased since 1993 Currently 24¢ per gallon State 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 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 Sharing

Inadequate revenue + growing need = backlog of deteriorating streets Financial Perspective

The Need/Goal New, locally-controlled sources of revenue

Alternative Revenue Options: Possible Revenue Sources 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 Tax Visitors/non-residents help pay for roads they use. Like State Fuel Tax will be affected by fuel usage.

Local 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 Local Fuel Tax CITYPassage DateRate Revenue EugeneJan. 2003$.03/gallon$2,000,000 Pendleton1999$.02/gallon$64,000 SandyJan. 2003$.01/gallon$100,000 Springfield2003$.03/gallon$750,000 Stanfield1999$.01/gallon$127,800 The Dalles1986$.03/gallon$300,693 Tillamook1982$.015/gallon$127,000 Woodburn1989$.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 Revenues

Who Uses Transportation Utility Fees? La Grande – 1985 Ashland – 1986 Tualatin – 1990 Eagle Point – 1990 Medford – 1991 Phoenix – 1994 Wilsonville Talent – 2000 Hubbard – 2001 Sandy – 2002 Grants Pass – 2002

Other Possible Revenues 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 Cost Cost of gas tax = $16.80/ year or

Conclusion 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? Which will go directly to road improvement projects

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“The Cost to You” Math Average driver annual gas consumption & local (1¢) gas tax payment = 570 gallons/year & $5.70/year

“The Cost to You” Math Estimated individual costs for combination local gas tax/TSMF = $35 a year