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

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. We all benefit from our transportation system Everyone Uses It…. 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. 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”.

7. 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

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

10. 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 10-15 years Overlay cost: $330,000/mile

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

13. 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.

14. 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

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

16. 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!

18. Street Inventory

19. Q Street West Main Street

20. East Main Street

21. Adams Street R Street Polk Street

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

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

24. Street Fund Revenue & Expenditures

25. 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

26. 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

27. Street Fund Revenue Sharing to Cottage Grove

28. 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

29. 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

30. 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

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

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

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

34. 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.

35. 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

36. Other Cities With a Local Fuel Tax CITYPassage DateRate2002-03 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

37. 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

38. 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

39. 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

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

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

42. 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

44. For More Information

45. Contact Information

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

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