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Albany review of gas tax, street-fee options finds public uncertain; council asks staff for June 23 update

3804150 · June 10, 2025
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Summary

DHM Research presented city polling showing modest baseline support for a city gas tax and low initial support for a utility-style street maintenance fee; council asked staff to return with analysis of House Bill 2025, updated gap calculations and timing options for putting a measure before voters.

John Horvitch of DHM Research presented survey and focus-group results to the Albany City Council showing limited baseline support for a city street maintenance fee and a narrow path to majority support for a proposed temporary city gas tax.

The presentation summarized a March–April 2025 survey of 300 likely voters and two focus groups. Horvitch said the survey showed a preload support level of 29% for a street maintenance fee that rose only to 34% after providing more information; opposition fell from 65% to 63%. By contrast, a proposed city gas tax moved from 41% initial support to 48% after information was provided and reached 51% in a final, more-informed test, Horvitch said. He told the council, "Albany currently does not have a gas tax" and that a proposed temporary gas tax was estimated to raise about $4,000,000 per year and would expire in five years unless renewed by voters.

Why it matters: Albany officials said the city has about 190 miles of streets, more than 60 miles of which are rated in poor condition; the council is considering local revenue options to reduce that backlog. The polling indicates that a successful gas-tax measure would likely require a sustained public-education and outreach campaign to move swing voters. Horvitch advised the council that movement is possible — "we move people 10 percentage points on the yes side in just the time we had them in the survey" — but cautioned that the campaign would need time to reach voters.

Council discussion and direction Councilors asked staff about timing, coordination with other local taxing jurisdictions and the effect of pending state legislation. Councilor Thompson asked whether any state increase in the gas tax could be used on residential streets; Horvitch and staff replied that the state gas tax (unlike the federal gas tax) can be spent on local streets and that the city should have a clearer estimate of what House Bill 2025 would provide by the June 23 work session. Multiple councilors, including Councilor von Jabbelin and Councilor Platt, said they favored taking more time to build a campaign and voiced support for the 5-year temporary structure with a voter re-ask as an accountability element.

Next steps and staff assignments City staff said they will return to the council at a June 23 work session with: updated revenue-gap calculations reflecting the final structure of House Bill 2025, an accounting of how different gas-tax levels would translate to miles/blocks of rehabilitation per year, and a recommended timeline for outreach and ballot placement. Staff also said they are developing a framework for a separate street maintenance fee to present at that same meeting.

Quotes "Albany currently does not have a gas tax," John Horvitch of DHM Research said during his presentation. "This would be a real effort that would take real engagement over a sustained period of time," Horvitch told councilors when asked about the timeline for a public education campaign.

Ending Councilors did not take a binding vote on a ballot placement at the meeting. Instead, they directed staff to return on June 23 with analyses of HB 2025 impacts, revenue scenarios for gas-tax options, estimates of pavement work per funding level, and an updated recommendation on whether to seek voter approval in 2025 or move the measure to 2026 to allow a larger outreach effort.