What is the proposed Transportation Utility Fee and what will it be used for?

The proposed Transportation Utility Fee is a monthly user fee based on the use of the road system by residents, businesses, government agencies, schools and non-profits. Money collected from the fee will be used for street maintenance. (Types of Street Maintenance) The City estimates that it will take $2.8 million per year, adjusted for inflation, to clear our street maintenance backlog by 2018. 

Were citizens involved in developing the proposed Transportation Utility Fee?

A citizen task force (Transportation Funding Committee)was appointed in April 2007 to consider how much money the proposed fee should raise, how the proposed fee should be divided between residential and non-residential customers, and how and if the proposed fee should be adjusted.

The recommendations of the task force were forwarded to the Transportation Committee for review on May 6.  A public hearing on the Transportation Utility Fee took place at the June 17 City Council meeting.

Why is a Transportation Utility Fee needed?

This fee will be used for the maintenance and repair of streets under the City of Hillsboro’s jurisdiction. (Street Maintenance Projects)  Preventative maintenance can extend the life of a street to 30 years or more.  Restoration of pavement near the end of a street’s service life will typically cost 4 to 5 times more than preventative maintenance performed in a timely manner.  The longer we wait to take care of our streets, the more they will cost to repair.  

• Deterioration Curve Graph
  

When will this proposed fee go into effect?

The Council approved this fee on June 17th. It will become effective in March 2009.

Why is more money needed to repair and maintain streets?

As streets age, they require maintenance.  Like so many things, maintenance costs have been increasing at 10% or more per year.  During the 1980’s and 1990’s, many new streets were developed that are now in need of maintenance. The growing need for street maintenance coupled with increased costs has outpaced available revenues. 

(Street Maintenance Projects) The cost to repair our current backlog for street maintenance is approximately $9.1 million.  Without additional funds, we will fall further behind and the cost will balloon to $28.3 million by 2018.  The longer the maintenance is deferred, the more it costs.  A delay of even a few years can double the cost of a maintenance project. 

What will the gas tax be used for?

Gas tax revenue will continue to fund the day to day operations like sign and striping projects and pot hole filling.  The portion of gas tax currently used to fund our street maintenance program will be replaced by the Transportation Utility Fee. That part of the gas tax will be redirected to add sidewalks, bicycle lanes, street lighting, striping and curb ramps where needed.

An integrated system of sidewalks and bike paths to serve the entire community is a strategy in Hillsboro 2020 Vision.

How much can I expect to pay and how will I be billed?

The proposed user fee will be collected through your utility billing statement.  Each residential unit will pay a flat fee of $3.10 per month.  Apartment complex owners will be charged $3.10 for every unit in the complex.  Businesses, government agencies, schools and non-profits will pay based on the number of trips generated by their employees, vendors and customers. Most people receive their utility bill every other month.  Because the proposed fee will be collected through utility bills, residents may be charged $6.20 with each bill because it will cover two months. The same may apply to businesses, government agencies, schools and non-profits. 

Is this fee going to increase every year?

A new citizen advisory committee will review the fee every year and make recommendations regarding any adjustments to our Transportation Committee.  The Transportation Committee will forward a recommendation to City Council for approval. 

• (Final Report)

How was the number of trips for a single family home determined?

Traffic engineers rely on a “Trip Generation” manual recommended by the Institute of Transportation Engineers to figure out traffic impact to streets.  Based on studies, the manual concludes that single family homes generate, on average, 9 to 10 one-way vehicle trips per day.  Below are some examples of the types of daily activities that generate trips that use our streets whether they are done by bus, car or truck.

• Leaving and returning from work (2 one-way trips)
• Taking a child to school in the morning and returning to pick them up in the afternoon (4 one-way trips)  
• Trip to and from shopping  (2 one-way trips)
• Trip to and from church (2 one-way trips)
• Local  deliveries and service providers (U.S. Mail, Fed Ex, Trash/ recycle pick-up)
• Trip to and from the doctor/pharmacy (2 one-way trips)
• Trip to and from a restaurant of any type (2 one-way trips)
• Trip to and from the recreation center or exercise facility (2 one-way trips)

How can I lower my fee?

Under certain circumstances, based on program eligibility, the Transportation Utility Fee can be lowered or waived.  Discount and waiver programs exist for both residential and non residential customers.  For more information, please call (503) 681-6146.

Who can I contact with questions about the TRANSPORTATION UTILITY FEE?

Email Us or call (503) 681-6146

Public Works •150 E Main Street • Hillsboro OR 97123 • (503) 681-6146 • Email