Junction City Transportation System Plan
Page 60
expected level of traffic generation and the
resulting impacts to the transportation system.
Urban Renewal District (URD)
A URD is a tax-funded district within the City.
Improvement projects within the district are
typically paid for through bonds and
constructed up front, with the bond debt paid
by the incremental increases in property taxes
that result from the improvements made. While
this process can be used to pay for
transportation improvements, it also channels
future tax revenue away from other potential
uses until the debt is paid or until the term of
the district expires.
Local Fuel Tax
Twenty-two cities and two counties in Oregon
have adopted local fuel taxes by public vote,
ranging from one to five cents per gallon.
Nearby locations with a City fuel tax include
Cottage Grove (three cents per gallon), Veneta
(three cents per gallon), Springfield (three cents
per gallon), Coburg (three cents per gallon) and
Eugene (five cents per gallon).
Based on experiences in other communities, a
local fuel tax in Junction City could generate
approximately $10,000 annually for every cent
charged. A three to five-cent tax, similar to
neighboring communities, could generate
$30,000 to $50,000 annually (or approximately
$1,000,000 by the year 2036).
With the tax being applied to fuel sales, visitors
and people traveling through Junction City will
contribute revenue as well as local residents.
Assuming the average driving resident in
Junction City travels 12,000 miles per year with
a rate of fuel consumption of just over 20 miles
per gallon of fuel, they would pay about $6
annually for every cent of local fuel tax charged.
Local Improvement District (LID)
The City may set up Local Improvement Districts
(LIDs) to fund specific capital improvement
projects within defined geographic areas, or
zones of benefit. LIDs impose assessments on
properties within its boundaries and may only
be spent on capital projects within the
geographic area. Benefiting properties are
assessed their share to pay for improvements.
Since LIDs may not fund ongoing maintenance
costs, they require separate accounting.
Furthermore, because citizens representing 33
percent of the assessment can terminate a LID
and overturn the planned projects, LID projects
and costs must obtain broad approval of
property owners within the LID boundaries. LIDs
can be matched against other funds where a
project has system wide benefit beyond the
adjacent properties. LIDs are often used for
sidewalks and pedestrian amenities that
provide clear benefit to residents along the
subject street.
Street Utility Fee
A number of Oregon cities supplement their
street funds with street utility fees. Establishing
user fees to fund applicable transportation
activities and/or capital construction ensures
that those who create the demand for service
pay for it proportionate to their use. Street
utility fees are recurring monthly charges
included on existing local utility bills that are
paid by all residential, commercial, industrial,
and institutional users. The fees are charged
proportionate to the amount of traffic
generated, so a retail commercial user pays a
higher rate than a residential user. Typically,
there are provisions for reduced fees for those
that can demonstrate they use less than the
average rate, for example, a residence where
no cars or trucks are registered.