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Council Establishes the Street Maintenance Fee Rates

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	City of Tigard 13125 SW Hall Blvd. Tigard, Oregon 97223	Press Release February 27, 2004
For Immediate Release
Contact:	Agustin P. Duenas, P.E. City Engineer City of Tigard 503-639-4171, x2470 gus@tigard-or.gov

Council Establishes the Street Maintenance Fee Rates
The Tigard City Council established the Street Maintenance Fee rates at its 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. Actual implementation of the fee is expected to commence in April 2004. This would allow City of Tigard staff sufficient time to set up the fee collection structure, provide advance notice of the new addition to the utility bill, and incorporate the new fee into the billing cycles.

City of Tigard Ordinance No. 3-10 established the Street Maintenance Fee for the City. The new 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 evenly between residential and non-residential uses, and assigns responsibility for the neighborhood routes and local streets to the residents. The rates are established for the first three years based on a 5-year average of the street maintenance projects to be implemented. The program will be reviewed after three years and the rates will be re-established at that time based on a 5-year plan that adds three more years to the street maintenance program. The ordinance allows for new street maintenance funding received through legislation from the State through the Oregon Transportation Investment Act to offset the revenues and reduce the rates at the time the rates are re-established.

Revenue from 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. Because deferred maintenance costs 4 to 5 times more in the long run, timely maintenance reduces costs, provides for safer streets, and protects the City's investment in the street infrastructure by extending pavement life significantly. The target annual revenue is $800,000. Charges to the revenue from the new fee include City overhead costs, as well as engineering design and construction management costs, related to the management and operation of the street maintenance program.

The City's Finance Director is charged with reviewing the revenue received after a year of collections to determine if the target revenue is being achieved. That review provides an opportunity for any State street maintenance revenue to be incorporated into the review and the rates re-established accordingly at that time.