City Council sets public hearing on gas tax.

Byline: Edward Russo The Register-Guard

Another gas tax hike to pay for street repairs is in the works for Eugene, along with other ideas that may cost residents and businesses.

The City Council on Monday unanimously decided to hear what residents have to say on Feb. 20 about a 3 cent increase in the city's nickel-a-gallon gas tax.

But that's just one of the money-raising proposals that councilors want to discuss in the coming year as ways to reduce what city officials say is a $100 million and growing backlog of street repairs.

` `Fix the potholes' gets to be a frequently heard comment when you interact with the public,' Councilor Mike Clark said.

The city imposed a 3-cent-a-gallon gas tax four years ago, and hiked it 2 cents more in 2005.

The council last fall considered a tax on homes and businesses to tackle the backlog. The tax would have cost homeowners $5.22 monthly. But the idea stalled after criticism from residents and organizations such as the Eugene Area Chamber of Commerce and the Eugene School District, among others.

Councilors said they wanted to explore alternatives to the home and business tax, called the Transportation System Maintenance Fee.

On Monday, Public Works Director Kurt Corey put forward these new ideas: A local option levy, which voters would have to approve; a commuter tax; and a tax on garbage trucks. A less expensive Transportation System Maintenance Fee also was presented.

Corey said a commuter tax could be imposed on businesses based on their number of employees. A $50 per employee annual charge could raise $4 million a year, he said, and nearly plug the funding gap.

A garbage truck tax could be justified, Corey said, because the heavy trucks are tough on streets.

A 10 percent surcharge on the city's $10 million collective annual garbage bill could raise $1 million, he said.

Some councilors liked the idea of a commuter tax. People who work in Eugene use the streets and should help pay to repair them like residents do, Councilor Alan Zelenka said.

Corey's proposals only focused on financing street repairs. But at Zelenka's urging, the council instructed staff to develop ways to finance a "transportation system for cars, trucks, bikes and pedestrians." Zelenka's motion included that proposals should provide exemptions or incentives to people who don't have cars or drive very much.

"We have an opportunity to incentivize people to use buses and walk or bike," he said.

At one point, the council was split between those eager to advance some of Corey's proposals and those who favored Zelenka's approach, which would take more time.

"God, you guys, we have talked about this ad nauseam and it's time to move these things forward," Councilor Jennifer Solomon said.

Sensing the split, Mayor Kitty Piercy urged councilors to unite behind whatever they present to the public. "If you are going to ask the community to vote for these things, there has to be more support behind them," she said.

Councilor Chris Pryor suggested that Corey and a council subcommittee be given three months to produce proposals. The council ultimately approved Zelenka's incentive-oriented motion 7-1. Councilor George Poling voted no. He said a commuter tax is unfair because non-residents wouldn't have a say in whether it should be passed.

Councilors next voted 8-0 to advance the 3-cent gas tax hike to a public hearing next month.