LIST OF FIGURES
LIST OF TABLES
Administering TUFs involves some considerations regarding accounting, enforcement, and addressing exemptions and waivers.
In establishing TUFs, municipalities may need to take on additional costs. These costs may include the following.77
§ Preparing or updating studies on street maintenance needs, including backlog and traffic analysis using city staff or outside consultants.
§ Surveying and classifying affected properties. In the case of Hillsboro, OR, city staff spent several months surveying around 1,200 nonresidential properties to update the city's data. Some of the data had to be adjusted within the first 6 months of the TUFs, including the correct property uses about which the city lacked the latest information.78
Setting TUFs fees.
Staff time to present to senior officials, policymakers, business groups, and the general public.
Development of collateral materials, such as flyers, to inform the public.
Following implementation, additional staff time for as much as a year to respond to questions about the program and bill payment issues.
In general, municipal staff who have worked on new TUFs programs have not expressed concerns that these costs are especially burdensome in the context of the benefits of a TUFs program. Nevertheless, the consensus is that staff and policymakers need to believe that TUFs are a reasonable solution to funding street maintenance and are willing to spend the organizational and political "capital" to make the program successful.79
As per State or local law, TUFs receipts generally are deposited into accounts that are separate from the municipality's general fund. This reflects the purpose of the TUFs–to recover the costs of using roads and other transportation fees–defined in a similar manner as water and other utility fees. It also reflects the transparent nature of this fee; residents understand, and hopefully can see, directly where their monies are being expended. Finally, it reflects that TUFs are fees and not a form of tax, which was articulated by the Colorado Supreme Court's Fort Collins' decision as described in section 0, and that
they cannot be used for general fund purposes. For many municipalities, this accounting is not a major burden because other utility fees, such as for water or stormwater, are also placed in separate accounts to fund those facilities.
Because TUFs are usually invoiced as part of a municipality utility bill, TUFs enforcement terms are similar, if not identical, to those of other municipal utilities. In general, those enforcement terms hold that if a utility bill is not paid within a certain period of time, the municipality can shut off the water to that property. This enforcement option is usually very compelling to the vast majority of property owners.
Because of this, municipal staff report very few, if any, issues with TUFs payments. For example, in 2000, Loveland did not include TUFs in their "delinquency process," which applies to other utilities. After it experienced unpaid bills, Loveland staff asked the city council the next year to include TUFs in that process.80 Since then, Loveland has not had major issues with unpaid TUFs bills81
The period of time that a municipality will wait until it takes enforcement action varies. For example:
Oregon City, OR, determines that a fee is late if "not paid within 30 days of the date of the bill," and "... billing and collecting agents of the transportation utility fee designated by the city may use any legal means available to collect delinquent service charges." The city's ordinance further defines that delinquent TUFs accounts be treated in the same manner as delinquent water service accounts per OCMC section 13.04.2020.82
Corvallis, OR, is less prescriptive and does not provide an explicit period of time, instead the ordinance states that "[i]f the Transportation Maintenance Fee is not paid when due, the City shall proceed to collect such charges in any manner provided by law."83
Many cities, such as Hillsboro, OR, and Taylor, TX, require that payment for bills "are due upon receipt."84
Because TUFs are fees for services rather than taxes, many municipalities require most properties to pay TUFs, with few properties exempted. As shown in table 7, the exemptions that are granted are primarily for city- or publicly owned parking lots, parking spaces, farms, public schools, vacant properties, properties that do not receive water or sewer service, and railroad rights-of-way.
Table 7. TUFs exemption examples.85
Municipality |
Exemptions |
|---|---|
Lake Oswego, OR |
|
Corpus Christi, TX |
|
Austin, TX |
|
Provo, UT |
|
Corvallis, OR |
|
Hillsboro, OR |
|
Phoenix, OR |
|
Hillsboro, OR, has a unique exemption for employers who purchase annual TriMet transit passes for their employees. They receive a TUFs discount based on the percentage of employees for whom they purchase passes. Furthermore, employers receive a credit if they have a commuter options program that has been approved by the Oregon Department of Environmental Quality.86
Hillsboro also addresses the issue that mixed-use properties may experience a change in use of which the city was not aware. In that case, the property owner must continue to pay the TUFs based on the original use until the city can confirm the new TUFs rate for the new category of use.87
Many cities offer some type of waiver or hardship discount to residential owners, usually for income reasons. These waivers include household income being below an established threshold, household members who experienced recent unemployment, and low-income elderly persons, as show in table 8. Some also grant waivers for owners who do not own motor vehicles, which can be a proxy for someone with a low income. For that waiver, Newberg, OR, only grants a 50 percent discount because it argues that the owner still benefits from the transportation network by receiving mail and parcel deliveries, visitors, and vendors.
Table 8. TUFs waiver and discount examples.88
Municipality |
Waiver or Discount |
| Lake Oswego, OR |
|
| Corpus Christi, TX |
|
| Austin, TX |
|
| Newberg, OR |
|
Oregon City, OR |
|
| Municipality | Waiver or Discount |
| Hillsboro, OR |
|
| Phoenix, OR |
|
Several municipal TUFs programs allow for property owners to appeal the fee level and/or the category in which their property has been grouped. Many of the appeals processes deal with nonresidential properties where there is much greater variety and properties may be more difficult to categorize, as shown in table 9. For example, in Lake Oswego, OR, a golf club that primarily has traffic on the weekend was ascribed a use that assumed traffic on weekdays as well.89 These programs allow for appeals to city staff and/or to the respective legislative body, such as the city council. In discussions with TUFs municipal staff representatives, appeals appear to be rare. In several cases, nonresidential property owners who appeal are given the opportunity to carry out their own traffic study at their own expense, following the methodologies established by the municipality.
Table 9. TUFs program appeals examples.90
| Municipality | Appeals Process |
Austin, TX |
|
Oregon City, OR |
|
Hillsboro, OR |
|
Phoenix, OR |
|
Municipalities publicly report what TUFs monies have accomplished on a periodic basis. Often, they do this in various types of annual reports on the street maintenance program or their utility programs. Others report the results on their websites. One municipality, Killeen, TX, produced an educational YouTube video that describes the need for street maintenance and funding. This video is available on the city's street maintenance fee webpage.91 The Hillsboro, OR, TUFs webpage is rich in content about all aspects related to the city's program. Individuals can find more information about the rationale behind the program, the process for setting the rates, and specific ways that the funds will be spent. The site provides access to maps and plans so it is clear which projects will be pursued with TUFs funds.
Furthermore, it provides contact information for city staff who concerned residents can call or email with questions.92
Many municipalities adjust their TUFs by an index that reflects inflation or the escalation of costs that relate to street maintenance, such as a construction index. Lake Oswego, OR, indexes its TUFs by the Engineering News Record Construction Cost Index (CCI) for the 20-city average. This is qualified in that the adjustment cannot be less than a 2 percent increase or more than a 7 percent increase.93 On the other hand, Hillsboro, OR, does not index its TUFs, rather it increases them based on its needs.94
77 Based on interviews with municipalities regarding their TUFs programs: Tina Bailey, Hillsboro, OR, interview, May 5, 2020; Erica Rooney, Lake Oswego, OR, interview, May 29, 2020; Josh Wheeler, Oregon City, OR, interview, June 8, 2020; Dave Klockeman, City of Loveland, CO, interview, June 30, 2020.
78 Ad Hoc Committee on Transportation Finance. April 2008. City of Hillsboro: Report to the Transportation Committee, Proposed Hillsboro Transportation Utility. p. 8. https://www.hillsboro-oregon.gov/home/showdocument?id=990. Bailey, Tina, Hillsboro, OR, interview, May 5, 2020.79 Based on interviews with municipalities regarding their TUFs programs: Tina Bailey, Hillsboro, OR, interview, May 5, 2020; Erica Rooney, Lake Oswego, OR, interview, May 29, 2020; Josh Wheeler, Oregon City, OR, interview, June 8, 2020; Dave Klockeman, City of Loveland, CO, interview, June 30, 2020.
80 City of Loveland, CO. September 18, 2001. Resolution adopting a new schedule of Street Maintenance Fees pursuant to section 16.42.040 of the Loveland Municipal Code.
81 Klockeman, Dave. City of Loveland, CO, interview, June 30, 2020.
82 City of Oregon City, OR. Code of Ordinances, Title 13 Public Services, Chapter 13.30 Transportation Utility Fees § 13.30.100.
83 Corvallis, OR. Ordinance 2020-03, § 2 (Exhibit A), 2/18/2020.
84 Hillsboro, OR, Municipal Code, Chapter 3 Finance, § 3.32.080 and Taylor, TX, Municipal Code, Chapter 17 Motor Vehicles and Traffic, Art. I § 17-12(g).
85 From the ordinances of the municipalities: Lake Oswego, OR, Municipal Code, Chapter 37. https://www.codepublishing.com/OR/LakeOswego/; Corpus Christi, TX, Code of Ordinances, Division 3 Street Maintenance Fee, § 55-696. https://library.municode.com/tx/corpus_christi/codes/code_of_ordinances; Austin, TX, Code of Ordinances, Chapter 14-10 - Transportation User Fee, § 14-10-14. https://library.municode.com/tx/austin/codes/code_of_ordinances; Provo, UT, Code of Ordinances, Title 5, Fees and Taxation, § 5.08.100. https://provo.municipal.codes/Code; Corvallis, OR, Ordinance 2020-03, § 2 (Exhibit A). 2/18/2020. https://library.municode.com/or/corvallis/codes/code_of_ordinances?nodeId=COMUCO; Hillsboro, OR, Municipal Code, Chapter 3 Finance, § 3.32.080. http://qcode.us/codes/hillsboro/; Taylor, TX, Municipal Code, Chapter 17 Motor Vehicles and Traffic, Article I, § 17-12(g). https://library.municode.com/tx/taylor/codes/code_of_ordinances; Phoenix, OR, Code of Ordinances, Chapter 13.28 Transportation Utility Fees, § 13.28.110. https://www.codepublishing.com/OR/Phoenix/
86 Hillsboro, OR, Municipal Code, Subchapter 3.32 Transportation Utility Fee. http://qcode.us/codes/hillsboro/view.php?topic=3&frames=on
87 Ibid.
88 From the ordinances of the municipalities: Lake Oswego, OR, Municipal Code, Chapter 37. https://www.codepublishing.com/OR/LakeOswego/; Corpus Christi, TX, Code of Ordinances, Chapter 55, Article 20, Street Preventative Maintenance Program, § 55-695. https://library.municode.com/tx/corpus_christi/codes/code_of_ordinances; Austin, TX, Code of Ordinances, Chapter 14-10 - Transportation User Fee, § 14-10-
14. https://library.municode.com/tx/austin/codes/code_of_ordinances; Newberg, OR, Municipal Code, Chapter 3.45 Transportation Utility Fee. https://www.codepublishing.com/OR/Newberg/#!/html/Newberg03/Newberg0345.html; Oregon City, OR, Chapter 13.30 Transportation Utility Fees. https://library.municode.com/or/oregon_city/codes/code_of_ordinances; Hillsboro, OR, Municipal Code, Chapter 3 Finance. http://qcode.us/codes/hillsboro/; Phoenix, OR, Code of Ordinances, Chapter 13.28 Transportation Utility Fees, § 13.28.110. https://www.codepublishing.com/OR/Phoenix/
89 Rooney, Erica, Lake Oswego, OR, interview, May 29, 2020.
90 From the ordinances of the municipalities: Austin, TX, Code of Ordinances, Chapter 14-10 - Transportation User Fee, § 14-10-9. https://library.municode.com/tx/austin/codes/code_of_ordinances; Oregon City, OR, Chapter 13.30 Transportation Utility Fees, § 13-30-060. https://library.municode.com/or/oregon_city/codes/code_of_ordinances; Hillsboro, OR, Municipal Code, Chapter 3 Finance, § 3.32.130. http://qcode.us/codes/hillsboro/; Phoenix, OR, Code of Ordinances, Chapter 13.28 Transportation Utility Fees, § 13.28.070. https://www.codepublishing.com/OR/Phoenix/
91 City of Killeen, "Street Maintenance Fee, Killeen Street Service Video," https://www.killeentexas.gov/488/Street-Maintenance-Fee
92 Hillsboro, OR, Public Works. Transportation Utility Fee. https://www.hillsboro-oregon.gov/our-city/departments/public-works/transportation/street-and-road- maintenance/transportation-utility-fee
93 City of Lake Oswego, OR. January 1, 2020. Master Fees and Charges, 2020. p. 13. https://www.ci.oswego.or.us/sites/default/files/fileattachments/2020%20Master%20Fees%20Booklet_Final.pdf
94 Bailey, Tina, Hillsboro, OR, TUFS interview, May 5, 2020.
