Portland City Commissioner Sam Adams has dropped his plans for a 3-cent city gas tax, but will ask the City Council to add a "street maintenance and safety fee" into water bills of $4.54 a month for homeowners. Businesses would pay a different street fee based on their size and traffic volume.

The fees would bring Portland an estimated $464 million over 15 years. That money would repave old roads, add crosswalks and fund other maintenance, safety and environmental work on existing roads. It's enough to bring every Portland street now in "poor" or "very poor" condition up to "fair" or "good" condition.

Previously, Adams proposed a $4.50-a-month fee for 10 years combined with a 3-cent local gas tax. But state leaders urged him to drop the gas tax proposal because they hope to raise transportation funding statewide in the 2009 legislative session.

Senator Rick Metsger, D-Welches, said legislators will soon start drafting a package with "a significant gas tax component and other user fees, license and title fees." He couldn't say just what the package would look like, saying legislators need to negotiate among themselves and educate voters about need for the package.

Adams said Gov. Ted Kulongoski and other state leaders have been discussing a 12-cent-a-gallon tax hike, phased in through 4-cent increases in 2010, 2012 and 2014. That would bring Portland an estimated $185 million for street maintenance and safety work over 15 years, he said.

If new state taxes and fees fell short of that amount, Adams, who is running for mayor of Portland in November, said he may have to reconsider seeking a local gas tax to make up the difference.

http://blog.oregonlive.com/breakingnews/2007/12/city_gas_tax_dies_street_fee_i.html