Street Maintenance Fee Implemented
Fact Sheet: March 19, 2004
What is the Street Maintenance Fee?
- The Street Maintenance Fee is a monthly user fee designated specifically for use in the maintenance
of the existing city streets.
- The fee was approved through Ordinance No. 3-10 by the City Council on November 18, 2003.
- It will be billed as part of the bi-monthly utility bill that City residents already receive.
Who pays the fee?
- Both businesses and residences will pay the fee.
- For single-and multi-family units, the fee is $2.18 per unit per month.
- For non-residential customers pays $0.78 per parking space per month.
- Gasoline stations pay $0.78 per fueling pump station per month.
Do I have to pay the fee even though I live on a private drive that is not maintained by
the City? Why should I pay the fee because I don't drive on City streets?
- The Street Maintenance Fee is not intended to have residents and businesses pay to maintain
only that portion of the street in front of their home or business. It is intended to share equally
the cost of maintaining the entire Tigard street system which we must all use to get to our homes,
jobs, or businesses.
Why is the Street Maintenance Fee needed?
- Timely maintenance of streets extends pavement life and provides safer roads.
- Deferring maintenance on streets increases costs 4 to 5 times more in the long run.
- This fee will provide the revenue necessary for timely maintenance of City streets.
- There is over a $4.0 million backlog of street repairs that need to be completed.
How much money will the City receive from this fee?
- The City estimates that the fee will generate approximately $800,000 per year so that the
City can begin working on maintenance projects.
Does the City have the right to charge this fee without a vote of City residents?
- The Tigard City Council under the City Charter and Tigard Municipal Code has the authority to
establish fees and charges for services provided by the City.
Why didn't I know sooner that the City was going to begin charging this fee?
- A Transportation Financing Strategies Task Force formed by the City Council and made up
of local residents recommended the adoption of this fee to ensure that streets are maintained and
the City's infrastructure is protected.
- All meetings of the task force were open to the public.
- There have been several articles in the Tigard Times and The Oregonian.
- Public hearings were held by the City Council. The date, time, and location of the meetings
were posted on the City website and listed in the Tigard Times along with other Council
meeting agenda items.
Contacts:
- Gus Duenas, City Engineer, Ext. 2470 - Customer appeal inquiries.
- Paul Izatt, Engineering Technician, Ext. 2463, - Customer inquiries regarding number of parking
spaces assigned.
Additional Detailed Information:
At its meeting on November 18, 2003, City Council passed
Ordinance No. 3-10
establishing a Street Maintenance Fee for the City of Tigard. The fee is based on an
approach that links the rates to the City's long-term street maintenance program. It
assigns responsibility for the arterials to the non-residential uses, splits the costs
for collectors between residential and non-residential uses, and assigns responsibility
for the neighborhood routes and local streets to the residents.
Because deferred maintenance costs 4 to 5 times more in the long run, timely maintenance
is essential. Timely maintenance provides for safer streets and protects the City's
investment in the street infrastructure by extending pavement life significantly. The new
Street Maintenance Fee will address the City's $4 million street maintenance backlog over
a period of years by providing a stable source of revenue that can be used to schedule and
perform street maintenance in a timely manner.
The fee, as originally proposed by the Transportation Financing Strategies Task Force, was based
on trip generation rates for various land use categories. The scope encompassed four
maintenance elements (street maintenance, rights-of-way maintenance, sidewalk maintenance,
and street light and traffic signal maintenance). The Oregon Grocery Association (OGA)
proposed an alternative approach at the June 19 2003 meeting with the Task Force that
addressed the street maintenance element only. A modified version of the OGA proposal
was approved by the Task Force at a meeting on July 21, 2003 and submitted for Council
approval at the August 12th meeting. The ordinance passed by in November 2003 Council
addresses the street maintenance element only.
The key concepts in the establishment of the Street Maintenance Fee are as follows:
-
Ties the street maintenance element of the fee to a 5-year maintenance and
reconstruction plan prepared by the City of Tigard
- Uses actual road repair projects
- Tailors the fee to the local data
- Sets a target revenue goal of $800,000 annually
- Allocates the costs of the arterial projects to the non-residential uses
-
Splits the costs for the collectors on a 50-50 basis with residential and
non-residential uses sharing the costs equally
- Allocates the costs for neighborhood routes and local streets to residential uses
-
Allocates the costs for residential uses on a per unit basis for both single family
and multifamily units.
-
Uses the minimum parking space requirements based on the Tigard Development Code for
non-residential uses with a 5-space minimum and 200-space maximum. This approach takes
into account businesses that draw from a larger area than just Tigard.
-
Includes City overhead costs, as well as engineering design and construction management
costs, related to the management and operation of the street maintenance program.
-
Sets the rate for the first three years based on a 5-year average of the projects to be
implemented. Includes a review of the program after three years and re-establishes the
rate at that time based on a 5-year plan that adds three more years to the program.
Allows for new street maintenance funding received through legislation from the State to
offset the revenues and reduce the rates at the time the rates are re-established.
The resolution to set the Street Maintenance Fee rates was approved by Council at their meeting
on February 24, 2004. The monthly rates are: $2.18 per unit for residential uses (both single
family and multifamily units), and $0.78 per parking space or fueling position with a 5-space
minimum and a 200-space maximum. Implementation of the fee began in April 2004.
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Background Information
Gus Duenas
503-639-4171 x2470
gus@tigard-or.gov
Diane Jelderks
503-639-4171 x2465
dianej@tigard-or.gov
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