Independence Transportation System Plan Update - Open House and Workshop #1Virtual Workshop


Existing Funding Sources

Transportation revenue in Independence primarily consists of state revenue from the state gas tax, which was recently changed by House Bill (HB) 2017, and local revenue from a transportation system development charge (SDC). Increases in state revenues will depend primarily on gas consumption.

State Transportation Revenue

The primary state revenue source is the state gas tax. State gas taxes are comprised of proceeds from excise taxes imposed by the state and federal government to generate revenue for transportation funding. The proceeds from these taxes are distributed to Oregon counties and cities in accordance with Oregon Revised Statute (ORS) 366.764, by county registered vehicle number, and ORS 366.805, by city population. The Oregon Constitution states that revenue from the state gas tax is to be used for the construction, reconstruction, improvement, maintenance, operation and use of public highways, roads, streets, and roadside rest areas.

While the population is expected to continue to increase by approximately 2.7 percent per year over the next several years, revenue from the state gas tax depends on gas consumption, which is expected to go down over time.

Transportation System Development Charges

The primary local revenue source is from Transportation SDCs. Transportation SDCs are fees assessed on developments for impacts to the transportation infrastructure. All revenue is dedicated to transportation capital improvement projects designed to accommodate growth. The City can offer SDC credits to developers that provide public improvements beyond the required street frontage, including those that can be constructed by the private sector at a lower cost. For example, SDC credits might be given for providing off-site improvements, such as sidewalks and bike lanes that connect the site to nearby transit stops. Independence uses the revenue from SDCs on eligible projects that cannot be funded by other means.

COVID-19 Considerations

Although this Open House is only presenting the existing conditions of the transportation system in Independence, next steps in this project include funding forecasting over the 20-year planning horizon. The economic impacts and other long-term effects of COVID-19 will need to be considered when this upcoming projection work is completed.

When you're done exploring this room and providing feedback, you're done with the workshop! Thanks!