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Jefferson County considers phased surcharge to fund replacement of 35‑year‑old fuel island used by local agencies
Summary
Public Works proposed raising a per‑gallon surcharge on users of the county fuel island to build a reserve for a potential $175,000–$200,000 replacement; commissioners asked staff to contact partner agencies and seek feedback before a formal change.
Jefferson County Public Works told the Board of Commissioners on April 9 it is planning for eventual replacement of the county's fuel island and suggested a phased increase to the existing per‑gallon surcharge to build a reserve.
Public Works Director Matt Paulson said the county's fuel pumps and tanks were installed in 1991 and are now about 35 years old. Paulson said the county has been saving from a 5¢‑per‑gallon surcharge established in 2016 and currently holds about $66,000. His staff estimate a full replacement could cost on the order of $175,000–$200,000.
Paulson proposed an incremental plan to raise the surcharge from 5¢ to 8¢ in July, then add 2¢ in 2027 and another 2¢ in 2029, which would put the surcharge near 12¢ per gallon for participating users. He said the surcharge would apply only to the seven current users operating under the county's card‑lock contract, including the school district (509J), Jefferson County Fire, Jefferson County EMS, the sheriff's office, the City of Madras, City of Metolius, and Deschutes Valley Water.
Commissioners expressed support for building a reserve to ensure continuity if the aging system fails, and they asked Public Works to circulate the proposed letter to partner agencies to gather feedback before any formal rate change. Commissioner comments noted the county's fuel island provides a tax advantage to public users (counties and cities do not pay state fuel tax on the facility) and stressed the value of retaining a robust fueling capability for emergency response.
Paulson said the system is still operating and may last significantly longer, but the county's intent is to be fiscally prudent and accumulate funds by the contract renewal date in 2031. Commissioners did not vote to adopt a surcharge increase on April 9; they gave staff consensus to begin partner outreach and return with feedback.
A follow‑up for staff: circulate the draft letter to all contract users, collect written feedback, and return to the commission with options for a formal ordinance or interagency amendment if partners agree to a surcharge increase.
