City of Cottage Grove Preserving Cottage Grove’s Streets

2. City of Cottage Grove PreservingCottage Grove’sStreets

3. 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)

4. Everyone Uses It…. We all benefit from our transportation system • Directly • As drivers, bicyclists, transit users, pedestrians • Indirectly • To receive goods and services

5. 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

6. Why Streets Matter Direct Cost to You: Consequences of deferred maintenance • Increased driver costs: You pay more for tires, steering alignments… and more accidents! • Estimated up to $320 a year per driver in increased costs*. *Data from T.R.I.P.’s 2002 report“Rough Ride in the City”.

7. Why Streets Deteriorate • Age • Designed to last at least 20 yearswith proper maintenance • UV rays, oxidation, temperature fluctuations & weather conditions • Use • Weight/movement of traffic • Studded tires

9. Early Deterioration • Raveling – roughening of surface • Small cracks • Sealing individual cracks • At 5 years – slurry seal entire surface

10. Moderate Deterioration • Overlay reseals surface & adds structural strength • Done every 10-15 years • Overlay cost: $330,000/mile • 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

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

12. Temporary Repairs • Thin lift overlays 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. • Pothole patching

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

15. Street Inventory

16. Q Street West Main Street

17. East Main Street

18. R Street Adams Street Polk Street

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

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

21. Street Fund Revenue & Expenditures

22. Street Fund Activities 2002-2003 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

23. Financial Perspective 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

24. Street Fund Revenue Sharing to Cottage Grove

25. State Gas Tax • Main source of revenue • Hasn’t increased since 1993 • Currently 24¢ per gallon *Cottage Grove receives less than 1 penny for every dollar of state gas tax

26. State Gas Tax If people drive more, why hasn’t gas tax revenue increased? more miles traveled + more fuel efficient cars = gas consumption has remained flat over the years

27. County Revenue Sharing • Has declined in recent years. • Dependent on County Financial Health (creates uncertainty). • Some of County funding is subject to Congressional action (creates more uncertainty).

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

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

30. Possible Revenue Sources Alternative Revenue Options: • Local motor fuel tax • Other possible local or County-wide revenues

31. Local Fuel Tax • Each penny of local gas tax generates about $42,000 a year. • Related to how much people drive on streets. • Visitors/non-residents help pay for roads they use. • Like State Fuel Tax will be affected by fuel usage.

32. Local Fuel Tax 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: • Would pay $5.70/year in a local area fuel tax if one penny of local gas tax were added • All of this money would go to Cottage Grove

33. Other Cities With a Local Fuel Tax

34. Other Possible Revenues 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.

35. 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

36. 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

37. Individual Cost • Increased cost for bad streets = $320 a year • Cost of gas tax = $16.80/ year or

38. Conclusion We need to create our own solutions to preserve area streets and control the fate of our transportation system.

39. Where are we now? • 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 Which will go directly to road improvement projects