Friday, January 8, 2010

Revised Street Maintenance Fee

Tigard City Council Passes Revised Street Maintenance Fee
In a public hearing this evening, Tigard City Council responded to concerns about recent action taken on Tigard’s Street Maintenance Fee and adopted a revised fee schedule. The Street Maintenance Fee is used to maintain existing Tigard city streets to prolong their life and prevent expensive reconstruction. Maintenance costs are accelerating and the condition of Tigard streets has been slowly deteriorating.

In a public hearing on December 8, 2009, Council approved an increased Street Maintenance Fee after a year-long process. During the hearing, members of the business community commented that the increase was too high during these economic times. In response to those comments, members of Tigard Council and staff met with several people who testified to listen to their concerns. Based on those meetings, a new proposal with lower fees was jointly developed which was adopted by the City Council.

The lower fees will fund a downsized pavement management program. The revised program is intended to hold the line on street condition to prevent further deterioration, but will not provide the planned improvement in the average street condition for Tigard. Street condition is commonly measured using an index from 0-100. Tigard has a long-term goal to increase the average condition of city streets to be between 70 and 75. The adopted program will hold the average pavement condition at 67. The program also includes improved right-of-way maintenance, which was not funded previously. Funding is at a decreased level than adopted December 8th with an estimated $100,000 going to maintain rights-of-way and medians.

The fees will have a three-part phase-in that will start July 1, 2010 and will be complete on January 1, 2012. To prevent the program from falling behind inflation, the fees are indexed, but will not increase by more than seven percent per year.

Below is a summary comparison of the action taken by Tigard City Council:

Comparison of Tigard Street Maintenance Fee by Ordinance
Customer Type Prior Ordinance Ordinance Passed at Dec 8, 2009 Hearing
Ordinance Passed at January 5, 2010 Hearing

Initial Phase Final Phase* Initial Phase Final Phase*
Residential $2.18 $3.22 $6.01 $3.01 $5.25
Non-Residential $0.78 $1.23 $2.42 $0.92 $1.19
Start Date Current July 1, 2010 July 1, 2012 July 1, 2010 Jan 1, 2012
* Final Phase amount prior to inflationary adjustment

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