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Proposed street maintenance fee changes
Calendar Date:Friday, May 9, 2014 - 7:30am to 9:00am
In 2013, the West Linn City Council made a concerted investment in pavement maintenance in West Linn. The council voted to increase the city’s street maintenance fee (SMF) on all residential users by 75 percent; with a 5 percent increase over the next four fiscal years.
This resulted in a $4.42 increase in their SMF. However, the council elected to not increase the accompany SMF for nonresidential (i.e., commercial, industrial and public institution) until they could review the impacts it would have businesses in the city. The council requested that the economic development committee evaluate and recommend potential increases in the nonresidential SMF that would fair.
When the SMF was initially implemented, specific language was added to ensure that the highest users in West Linn would not shoulder a disproportionate fee burden. This language established a maximum “cap” that discounted the nonresidential fee for the highest users in the city. A consequence of this cap is that fee increases that have occurred for all other users in the city have diminished the proportional share that these higher users pay into the system.
SUMMARY OF CHANGES PROPOSED BY THE EDC:
Raising the cap that currently applies to the highest trip generators in the city by 75 percent.
There will be no change for the remaining (+200) businesses in the city.
Rate increase results in $65,402.40 more revenue per year for the city.
Will only impact the 17 highest generators in the city (11 of which would pay the new $892.50 cap).
Since the rate was increased on residential users by 75 percent it was equitable to increase the cap by the same amount.
Increasing the commercial cap by 75 percent results in an $892.50 a month fee for the highest traffic generators in the city.
RESULT: The 75 percent increase would leave 11 businesses paying the new cap and would result in $5,450.20 a month in additional revenue, which is $65,402.40 a year.
OPEN HOUSE BREAKFAST
Join your fellow West Linn business owners and commercial property owners for a breakfast open house on Friday, May 9, from 7:30 to 9 a.m. at city hall, 22500 Salamo Road. City staff and members of the West Linn Economic Development Committee will be on hand to answer questions and provide information on the issue. If you cannot attend the open house, you may email questions or comments to Community Development Director Chris Kerr at firstname.lastname@example.org.