La Grande considers local gas tax to fund street maintenance

La Grande city officials are revisiting a local gas tax as a dedicated revenue stream for street maintenance and repair, and the city council will discuss proceeding with gas tax planning and potential inclusion in the 2026 general election at its March 4 meeting at 6:00 p.m. A March 2 report described the proposal as “a solution now being seriously considered by the La Grande City Council, and to be voted on by residents in the future.”

City finances for roads are constrained: the city’s road budget is a separate fund with limited revenue options - the state gas tax, the local street user fee, and federal dollars routed through the Oregon Department of Transportation. La Grande received “just over $1 million” from the state gas tax in the 2025–26 fiscal year, and the street user fee fund is used for major rebuilds and grant matching. The council previously used American Rescue Plan Act money to shore up pavement needs, putting $3 million into road infrastructure in 2022.

City Manager John O’Brien has framed the effort around constituent concerns, saying, “I would argue what we’re talking about here is the best and most responsible thing we could do for the community.” Residents have repeatedly raised the condition of city streets at council meetings, town halls and in conversations with staff, and city documents note concerns about the reduction of street maintenance capacity when ARPA funds are exhausted.

Councilor David Glabe has emphasized the backlog pressure on maintenance budgets, saying, “We fell behind the curve on what it takes to maintain our current roads at existing conditions,” and “We’re playing catch up right now.” Those remarks accompany months of budget conversations in which staff and councilors have sought options to increase municipal funding without making major cuts to services.

La Grande has a recorded history with a city gas tax: officials explored the idea in 2015, and a gas tax measure appeared on the ballot in the 2016 general election and was defeated by “roughly 2 to 1,” according to council materials that cite Carpenter on the prior effort. That history figures into current planning as councilors weigh voter appetite ahead of any proposed 2026 measure.

Procedurally, the council’s March 4 agenda and a memo from a previous work session reference the gas tax discussion and are available through city meeting materials. What is not yet public in city documents are the proposed cents-per-gallon rate, projected annual revenue at specific rates, or draft ballot language and revenue estimates; those details were not included in materials released ahead of the March 4 meeting.

Next steps: council members will decide whether to direct staff to draft an ordinance or ballot measure language at the March 4 meeting at 6:00 p.m. Residents seeking more information or to review council materials should contact City Manager John O’Brien or attend the March 4 City Council meeting at La Grande City Hall.