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Bend Chamber Weekly
December 18, 2009
By Courtney Linville, Communications Coordinator
This Week's Highlights
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Council Looks at ways to Avoid Further Public Safety Cuts
Bend residents could see higher taxes to help avoid cuts to public safety. Public safety currently makes up about 80 percent of the city's general fund budget. City staff told councilors Wednesday evening to maintain the current level of service, a total of 16 more officers and nine new firefighters would be needed over the next six years. This would create a $21 million general fund shortfall.
During their presentations to the council, Fire Chief Larry Huhn and Police Chief Sandy Baxter both stated they are already facing staffing shortages and are worried about incident responses in the future.
Huhn pointed out a situation which happened only a few weeks ago where the department's resources were stretched thin because of a house fire and other calls. For a window of 30 minutes, no emergency response would have been available if another call had come in.
Huhn stated this was not a unique situation and it has happened before. "We had a tremendous exposure there," he said. "And this is not unusual, not an exceptional situation. It just happens to be one that happened recently. This is a concern - the other communities are not exactly overstaffed either. They're busy, and we run the risk when we call for mutual aid that they're not available."
Baxter pointed out to councilors her department has already been tightening its belt with a new patrol schedule, increased on-duty training, reduced expenditures in materials and services, leaving cars in the fleet longer than before, and looking for grants.
In a 2008 Police Department phone survey, 87 percent of respondents felt very or fairly satisfied with what the department was doing. Also, 90 percent of respondents felt safe in the community (whether at home, driving, or walking around).
"The reason for this is you don't see a group of gang members hanging around, you don't see a ton of graffiti, or drug deals happening on the street corner, and that is because of a police presence," said Baxter.
Baxter told councilors current staffing levels are already below standards and without additional revenue and officers, police presence could diminish and other programs could be impacted.
The council was given three options to choose from, including a five-year local option levy, the annexation of the Fire Department into the Rural Fire Protection District, or requesting staff to propose cuts in public safety.
Details still need to be hashed out, but staff told councilors the current revenue forecasts have little to no "wiggle room." This means the revenue forecasts don't factor in revenue drops or unexpected expenses.
Finance Director Sonia Andrews stated the problem the city has with its general fund is the city's permanent tax rate of $2.80, which is lower than other cities of comparable size. She told councilors in order to avoid significant cuts to police and fire another revenue source needed to be found.
The five-year local option levy was rejected by councilors. The levy was calculated at $0.235 for Police and $0.175 for Fire per $1,000 of assessed value.
The option most well received by councilors was raising money by annexing the city into Deschutes County Rural Fire Protection District No. 2. This option would have a tax increase of 14 cents per $1,000 of tax assessed value.
City Manager Eric King pointed out this option would create long term funding, create capacity in the general fund, avoid cuts in public safety, and it aligns the taxing district with the current service area.
Councilor Oran Teater stated he believed the Fire District was the most palatable option for the community at this time. "That makes the most sense to me," he said. "The temporary option is a real difficult uphill battle."
Councilor Jeff Eager stated he was not comfortable with either revenue increase. He believes the shortfall was caused by the growth in employee benefits and believes there needs to be concessions from employees in order to help maintain current services.
Though Councilor Mark Capell agreed there needs to be concessions from employees, he supports annexation. "We're taking some major risks if multiple events happen at the same time and we're not prepared," he said. "I don't want to be in that position. It's not a good position to be in. There isn't room to cut other areas (of the general fund) enough to get the staffing levels to an adequate (position)."
The council did not make any final decisions on the issue. City officials will come back in the coming weeks with more information on annexation and the next steps. The annexation will most likely go before the voters in 2011.
King pointed out citizens are getting a good service for the rate they are paying now, but the city is not out of the woods yet. "We have our work cut out for us," he said. "It's not just a staff issue, we need the leadership of our elected officials." |
City Council Highlights
Council rejects land sale offer: In a unanimous decision, the Bend City Council decided to reject a sales offer on a surplus right-of-way. The property in question is located at 1374 NW Galveston. An interested purchaser had negotiated with the city's realtor of record for a sales price of $43,500. Councilor Jim Clinton stated he firmly believes the city should sell the property for more since it is zoned commercial use. Staff pointed out due to the unusual size of the lot and limitations on access, the property is limited for possible commercial uses. Clinton said the property should be sold for at least $65,000. The council agreed to reject the current offer.
Council approves rate increases for Juniper Utility customers: The Bend City Council approved rate increases for Juniper Utility customers Wednesday evening. Customers within the utility could see an increase of $9 to $10 on their monthly bills. In a 2004 agreement with the city, the Juniper Utility Homeowners Association agreed to have the city take over the management of the utility and pay for the fixes to the system. City staff has calculated the new rates according to the agreement and included recent rate increases for other City of Bend customers. Finance Director Sonia Andrews said the utility customers did not see an increase in July because the city wanted to notify homeowners properly and help them understand the calculations. Several homeowners stated they were unaware of the original agreement and they were displeased with the increases. One homeowner said those on fixed incomes could be forced to sell their homes. City Manager Eric King pointed the city is continuing to work with the utility on issues and is looking at ways to spread the cost out. |
Department of Justice Releases its findings on Bend OLCC
After months of looking into complaints by area businesses, the Department of Justice released its findings on the Bend-area Oregon Liquor Control Commission (OLCC). The report stated Bend officials made decisions that "appeared abrupt and punitive in nature or overzealous."
The report also goes into detail about miscommunication and misplaced assumptions when determining when minors would be allowed. Though no business names were specifically used in the report, there are several examples where things could have been handled differently by local OLCC officials.
In a four-page letter to local elected officials, OLCC Executive Director Steve Pharo wrote, "The report shows we could have done some things differently and/or better, and we are pleased the investigator found there were not violations of laws or rules."
Pharo also stated the agency plans to provide news releases on a monthly basis of enforcement activity by region including types of violations and warnings. "We will develop processes to analyze data for trends in regions, and statewide, for consistency and to ensure the activities are in line with our mandates," he wrote.
If licensees or employees report "disrespectful" interactions with OLCC staff, Pharo writes "staff will be reminded of this expectation and held accountable for actions contrary to my directions."
Above all, Pharo states he wants to keep open communication between businesses and the OLCC. |
Insights on Measure 66 & 67
A recent survey of the Chamber membership showed members would like to receive more information about the impacts of Measures 66 and 67. Over the coming weeks, leading up to the final vote on January 26, 2010, the Chamber will provide additional information on these measures in both the Chamber Weekly and the Business Journal.
Measure 66 creates a permanent rate increase for high-end tax payers. As described in the Legislative Revenue Office Report in September 2009, "the bill is an increase in the top marginal tax rate for single filers with taxable income of at least $125,000 and for joint filers with taxable income of at least $250,000." For tax years 2009-2011, high income filers will pay an additional 1.8 percent tax. In 2012, the tax will be lowered; however there will be a permanent .09 percent rate increase.
There have been a lot of claims that only corporations will be affected by Measure 67. This is untrue. According to the report released by the Legislative Revenue Office, partnerships and LLCs will also see an increase in taxes. "In recent years, the rise in popularity of partnerships and LLCs has raised questions about the equity of the minimum tax across non-corporation types of business entities," the report states. "If this measure takes effect, they will be treated the same as S-corporations and the smallest C-corporations and be subje
ct to a flat minimum tax of $150." Prior to the passage of these measures, these business entities were not subject to a minimum tax.
Measure 67 also has a "second marginal tax rate." For tax years 2009 and 2010, corporations who have a net income above $250,000 would be subject to a tax rate of 7.9 percent. Those corporations who have a net income below $250,000 will stay at the same 6.6 percent tax rate. Starting in tax years 2011 and 2012, corporations making over $250,000 will see a slight decrease in the tax rate to 7.6 percent on net income. According to the Legislative Revenue Office report, in 2013 only corporations who have a net income in excess of $10 million will be subject to the 7.6 percent tax rate. |
Oregon Unemployment holds steady
Oregon's unemployment remained relatively unchanged for the month of November at 11.1 percent compared to October's revised figure of 11.2 percent.
Oregon's unemployment rate has certainly seen its highs and lows over the past year. The lowest number was 10.7 percent in February, and the state reached its peak in May at 12.2 percent. In 2008, the November unemployment rate was 7.8 percent.
The U.S. seasonally-adjusted unemployment rate decreased slightly from 10.2 percent in October to 10 percent in November. October's rate was the nation's highest level in 26 years.
The state is reportingtaht in November 211,424 Oregonians were unemployed.
Four major industries saw job losses including government, construction, financial activities, and other services. However, local government did see gains with an added 2,200 jobs. |
Stay Informed in 2010, Buy a Town Hall Forum Package
Happy Holidays! While you are trimming trees, wrapping presents, and thinking about the new year, you should start planning to stay informed in 2010 and sign up for the complete 11-month Town Hall Breakfast Forum package today!
Besides great information in the forums, the pass will also get you a copy of The Inside Scoop. The Inside Scoop is a specialized report about Bend City Council meetings that goes far beyond the general information you find in the daily news. The scoop will help you to stay current on city issues affecting your business
Save money now and purchase the full year Town Hall Breakfast Forum package for $220. This is $55 in savings! If you are interested in purchasing the Town Hall Breakfast Forum package, call the Chamber today at 382-3221.
Join us for the January 15 Town Hall Breakfast Forum as we have a panel discuss Measure 66 & Measure 67. Before turning in your ballot on January 26, listen to what our panel of experts has to say in favor of and against these measures. Get informed and get your questions answered!
The Bend Chamber would like to thank you for supporting business advocacy in 2009 and hopes to see you back at the Town Hall Forums in 2010.
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In the News
Bend Santa Express 2009 Update: Bend Fire Department and the Salvation Army have completed this year's Santa Express. This year's food drive was a huge success for the community. A total of 4,500 pounds of food, 450 toys, $250, and 320 pounds of clothing were collected during the event. Donations are still being accepted at all Bend Fire Department fire stations through December 19. These donations will help fill food boxes to feed well over 100 families for a month. The coats and clothing also go to those families in need this holiday season for warm clothing throughout the winter. The toys are for those children that wouldn't get anything this year for Christmas.
County Seeks Safe Sidewalk Award Business Nominations: The Deschutes County Bicycle and Pedestrian Advisory Committee (BPAC) seeks nominations of businesses that make the extra effort to keep their sidewalks clear of snow and ice this winter. Safe Sidewalk Awards will be awarded spring, 2010. Business and property winners will receive a certificate from Deschutes County and acknowledgment from their area chamber of commerce. Safe Sidewalk business nominations can be sent no later than March 19, 2010 to: Deschutes County Planner, Cynthia Smidt (Cynthia_Smidt@co.deschutes.or.us). For more information about the award or BPAC, please visit: www.deschutes.org/cdd/bikeandped or call the Deschutes County Community Development Department at (541) 317-3150. |
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