Title
Discussion of Clackamas County's Proposed 6% Motor Vehicle Fuel Tax
Body
RECOMMENDED ACTION (Motion):
Staff recommends that the City Commission discuss the proposal and make a decision to approve, deny or continue to the following meeting for further discussion.
BACKGROUND:
Clackamas County has proposed to place a 6% motor vehicle fuel tax that will sunset after 7 years on the November, 2016 ballot. The County has proposed to split the revenues from the gas tax with the Cities of Clackamas County, with 60% being dedicated to the County and 40% dedicated to the Cities. The 40% of the gas tax revenues generated would be distributed to the Cities based on population. The County has also requested that all Cities approve a resolution of support for the ballot measure and approve an Intergovernmental Agreement (IGA) with the County for the use of the funds. The approved resolution and IGA must be completed by September 1st. Those Cities that do not approve the resolution and IGA will not receive a share of the gas tax revenues.
The City Commission held a preliminary discussion of the proposal at the July 20, 2016 meeting and requested that this matter be brought back at the August 3, 2016 meeting for further discussion. The latest version of the proposed red-lined IGA is attached for review.