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Bend Chamber Weekly
July 17, 2009
By Courtney Linville, Communications Coordinator
This Week's Highlights
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Council votes down street utility fee, food exemption removed from room tax ordinance
In a 4-3 decision Wednesday evening, the Bend City Council voted down the proposed street maintenance fee that would have helped with paving projects within the city.
The Transportation Utility Fee (TUF) was proposed by the Street Maintenance Funding Focus Group. The fee would have appeared on utility bills and would have charged residents $1 to $2 per month and commercial properties $4 to $6 per month. The fee was designed to help fill a funding gap with street maintenance and to help keep the city from falling behind.
Several councilors were willing to approve the fee, only if there was a sunset clause after two years, or the fee was repealed once the state gas tax was enforced. Councilors Mark Capell, Jodie Barram, and Oran Teater favored the fee so maintenance wouldn't continue to be deferred. "I don't like the fee, but I don't see any other alternative," Teater said. "Deferred maintenance doesn't work here."
However, Mayor Kathie Eckman and Councilors Tom Greene, Jeff Eager, and Jim Clinton strongly opposed the fee by calling it just another tax. Clinton stated the fee had too many defects and is an "improper way to fix the roads."
"I don't question the need for road maintenance, but this allocates the cost in a way that is not fair and unrelated to people's use of the road," he said. "To disguise it as a fee is just not the right public policy."
Eager echoed Clinton, saying now was the time to stop additional fees for citizens. "I think we should say ‘enough' and give people who pay taxes and fees in this city a little break," he said. "It'd be nice to have the extra money, but I think the city needs to learn to live within its means a little better."
Greene said "this is an unfair tax," and he couldn't "muster the stomach to vote for (the fee)."
The council tossed around the idea of putting a local gas tax on the November Ballot. Under the state's proposed gas tax, local areas would not be able to impose a gas tax for four years after the November election. However, cities could still have fees like the TUF.
With the expense of a campaign and the November ballot only a few months away, the council will now wait and see what happens with the state's gas tax. Eckman pointed out the city could still come back to the TUF at a later time.
City staff will now have to come forward with a supplemental budget for the council to approve at its next meeting since the TUF was already calculated into the approved budget. City Manager Eric King reminded councilors the fee was designed to help maintain the city's streets in their current condition, not to make improvements. He warned councilors by not spending the money now, the city will end up spending more later on road maintenance.
"We understand and are very sensitive to the economic times," said King. "The idea is, if you do not spend the dollars now, you are going to spend more dollars later. That's what this decision was about."
In another close vote, the council moved forward with an ordinance to remove an exemption for hotels that serve food to guests. The city currently allows an allowance of $10 per person per meal to be deducted in the calculation of the transient room tax (TRT).
City officials believe it would be better to remove the exemption and bring the code in line with the state requirements.
During a public hearing, several hotel owners stated they are fearful the city will no longer be competitive against properties in the county without the exemption. The city has a nine percent TRT while the county has a seven percent TRT.
Eckman, Barram, Capell, and Clinton voted to remove the exemption while Eager, Greene and Teater voted no.
"I think it is time that we stop the loophole," said Capell.
Clinton echoed those sentiments by stating, "To me the food exemption, or room tax makes no sense, it never did and still doesn't. If one visits any other city, you pay so much for the room and you pay tax on that."
Eager pointed out the city needs to have a good code, and the city also needs to be competitive when competing for large scale business. "My concern is if we get rid of the deduction in its entirety, it will put properties at significant disadvantages and it could reduce TRT revenues," he said.
Eckman stated if there are issues of competitiveness, then something equitable will need to be figured out, however, she would still vote in favor of the ordinance.
Since this was the second reading of the ordinance, it will go into effect in 30 days.
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City Council Highlights
Council moves forward with burn ban: A burn ban could soon be in place as the Bend City Council proceeded with the first reading of the proposed ordinance. Several councilors stated at their last meeting they would like to see a complete ban on open debris burning. Visitors in the audience say this is a mistake and would hinder large property owners from protecting their land from fire. Some residents also stated their land is rocky, and it's harder to collect all the yard debris from the area. Councilors Clinton, Barram, Capell, and Greene supported the ordinance, while Mayor Kathie Eckman and Councilors Oran Teater and Jeff Eager were opposed. The council will hold its second reading and formal vote at its next meeting.
Council holds public hearing on COCC's special planned district: The Bend City Council held a public hearing on Central Oregon Community College's proposed special planned district/overlay zone. Officials from COCC say the overlay zone will provide the college with guidelines and standards for future development. Several residents are concerned about the impacts of the overlay zone. Residents are worried about possible heights of buildings, traffic impacts on local streets, parking, and the loss of property values. COCC officials told councilors the college would still have to go through site reviews, etc with each individual project. COCC also submitted a request to change the zoning from residential single family to public facility. The council will have a final vote on this issue at a later meeting.
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Local firm competes to help manage College Savings Plan
Rosell Financial Group is among four other finalists competing to manage Oregon's College Savings Plan. The plan suffered significant losses last year and the state is suing the current manager, OppenheimerFunds Inc., to recover about $36 billion in losses.
The Oregon treasurer's office hopes to make a final recommendation later this month. The firm that is selected will manage the Oregon 529 College Savings Plan which consists of almost $500 million.
"Earl Nightingale stated: 'Whatever the mind can conceive and believe it can achieve.' We are now believers!" said David Rosell, President of Rosell Financial Group. "We believe we are able to compete with some of the world's largest mutual fund companies because we have proposed investing the nearly $500,000,000 into Exchange Traded Funds (ETFs); the most advantageous investment vehicle of our generation."
Rosell Financial Group was recently featured on the front page of the Oregonian as one of the finalists to manage the savings plan.
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State unemployment rate stays above 12 percent
According to the Oregon Employment Department, Oregon's unemployment rate continues to remain above 12 percent at 12.2 percent for the month of June.
Oregon remains ahead of the national rate of 9.5 percent and has the second highest unemployment in the nation compared to Michigan.
"While today's employment report delivers some good news in that our unemployment rate is not increasing, it also reaffirms what we already know: thousands of Oregonians are out of work, seeking employment and need a job," said Governor Ted Kulongoski in a press release Monday. "The report today also tells us that actions from both the federal and state levels are beginning to deliver results. Through a combination of federal and state stimulus initiatives, we are experiencing increases in employment in the construction sector, which I believe will continue as the Transportation and Jobs Act of 2009 and more than $1 billion in capital construction investments approved by the legislature are implemented over the next two years."
One of the bright spots included in the report is the addition of 3,600 constructions jobs. This is above the normal average of 2,000 construction jobs. The leisure and hospitality sector also saw an increase with 3,500 jobs.
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In the News
Military Discharge Records no longer available to the public: Effective immediately, all military discharge records will be closed to the public. Records will only be available upon written request and will only be given to a veteran, veteran's spouse, veteran's legal guardian, County Veterans' Service Officer, Department of Veterans' Affairs Representative or a licensed funeral establishment. The reason military discharge records will no longer be available to the public is the passage of Senate Bill 618. For more information about SB 618 or the public disclosure of military discharge records, please call the Deschutes County Clerk's Office at 388-6549.
New tax laws receive criticism: The Oregon Legislature received criticism last week from the Tax Foundation over its new tax laws. The Tax Foundation is a nonprofit organization that monitors tax policy across the nation. In a recent study, the foundation said the laws were "short-sighted political patchwork." The foundation also stated the new hikes to both personal and corporate income tax will make the state's revenue "more volatile and predictable." Personal income tax was raised to 10.8 percent for a single person with a taxable income that exceeds $125,000. This also applies to couples who make more than $250,000. The study states Oregon now has some of the highest income tax rates in the nation. On the corporate side, the tax rate will mandate companies pay 6.6 percent on their first $250,000 of taxable income, and 7.9 percent on other income. "A better approach for the state's long-term fiscal health is to spread the burden across more state government's beneficiaries or to make deeper cuts in state spending," the study stated. The Tax Foundation says the income tax could encourage more businesses and individuals to look at moving to other states.
Traffic Updates from the Bend Police Department: Watch out for traffic controls and detours along Colorado, Columbia and Century from the Chandler to Mt. Washington roundabouts on July 18 and 19 due to the Deschutes Dash. South bound Mt. Washington, traffic will be detoured to Mountaineer Way; northbound by the Bill Healy Bridge to Mt. Washington will be open. There will be numerous signs posted along the route. Drivers should expect 10 to 15 minute delays from 8 a.m. to noon.
Drivers also need to be aware of changes in traffic controls from July 21 through July 26 due to the Cascade Cycling Classic. According to a Bend Police Department release, there will be several different venues including races along county roads, Century Drive, Skyliners, Cascade Lakes Highway and the Awbrey Butte Circuit Race. Signs and traffic control will be in place so drivers should expect some delays. On July 25, the Downtown Criterium will be held and Bond and Wall from Greenwood to Idaho will be closed. Other closed roads will include Franklin from Lava to Broadway. Street closures will begin at noon and will open again at 10:00 p.m. The police department says drivers should expect heavy congestion along other streets and detour routes.
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Upcoming Events
July 21 - Professional Development Series Luncheon - Generational Communication: There are now four generations in the workplace and in the classroom, each bringing different perspectives about the work environment and how to communicate effectively. Learn why one group prefers email, some would rather text and twitter and others insist on meeting face-to-face to "get things done." Why is there a different "work ethic" and how does each generation define "loyalty and respect?" Whether you are managing many or a new hire, your take-away will be more understanding and skill to navigate the differences effectively. Speaker and facilitator Kassia Dellabough, University of Oregon, will provide a generational overview, framework and characteristics and discuss their connections to work styles, learning styles, and communication in: work settings, management styles, values, communication, and digital information. Please RSVP for this event by Monday, July 20 at www.bendchamber.org. If you have trouble signing up, call 382-3221.
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