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Bend Chamber
777 NW Wall St, Ste. 200
Bend, OR 97701

Phone: (541) 382-3221
Fax: (541) 385-9929

info@bendchamber.org
www.bendchamber.org

 

 

Bend Chamber Weekly
January 8, 2010
By Courtney Linville, Government Affairs/Public Relations

This Week's Highlights

Bend City Council Looks at Wastewater Facility Future

     As the city continues to look at future growth, the capacity at the wastewater reclamation facility could be an issue. Wednesday evening, Public Works Director Paul Rheault told the Bend City Council the city needs to continue to plan ahead for wastewater treatment because it takes time to complete the improvements needed.
Bend's facility was constructed in 1980 and is designed to handle 7 million gallons of wastewater and 8 tons of waste solids per day. Rheault said in a typical day, Bend residents produce around 6.5 million gallons of wastewater and over 8 tons of waste solids.
     The top priority for the wastewater system is to upgrade the biological treatment facility where microorganisms and bacteria break down solid wastes. Rheault explained this expansion would allow a capacity of 11 million gallons per day. However, the price tag is estimated at $16 million and the project would require at least two to three years for construction.
     "These upgrades don't happen quickly, they take a bit of time," Rheault said. "I'm hoping we grow a bit, but that we don't grow too fast."
     The upgrade to the biological treatment facility is the first on a list of $50 million in upgrades needed for the wastewater system between now and 2030. In the past two years, the city has completed $9.5 million in upgrades to the facility.
     City Manager Eric King told councilors the needed improvements can be paid for through the capital project funds. However, because of the decline in system development charges from new development, the fund's growth has slowed. King said the slower growth could give the city more time before the current facility reaches capacity.
     City staff also told councilors an expansion at the treatment facility could help to attract more industries to the area. Rheault said if a manufacturer came into the city today, they might have to build an expensive on-sight facility to treat their wastewater because the city might not have capacity available.
     The expansion would also help the city to prepare for more rigorous wastewater treatment standards. Rheault said the Oregon Department of Environmental Quality is looking at a rule that would require large wastewater plants to test for and remove 118 new pollutants.
     In the coming months, the council will continue to look at Public Works and will receive updated information on streets and stormwater.

City Council Highlights

    Council to hold special work session on UGB Expansion: According to City Manager Eric King, Department of Land Conservation and Development (DLCD) hopes to have their report on Bend's Urban Growth Boundary Expansion to the city by next week. During a special work session on Friday, January 22 from 2 to 4 p.m., Richard Whitman from DLCD will present the Director's Report to the Bend City Council.
     
Update from Higher Education Assessment Team: Councilor Jim Clinton provided the Bend City Council with an update from the Higher Education Assessment Team. The team plans to ask the 2011 Legislature for funding for a new facility for OSU Cascades. The team will also continue to look at the future of higher education in Central Oregon. Clinton stated the group is working on a draft report for higher education and plans to get comments from the local communities. "This is an important topic for the future of our region and this is the first step," said Clinton. "(We need to) develop the plan so we have more higher educational opportunities here in Central Oregon." The report should be completed sometime this spring. The group has also discussed the possibility of OSU Cascades having the ability to grant degrees under local control.

New Study Looks at Overall Impact of Measures 66 and 67

     With only a few weeks to go until the vote on Measures 66 and 67, the Bend Chamber is committed to giving members more information to make an informed decision.
     A recent economic study by the Cascade Policy Institute measured the likely effects of the rate increases on households and corporations in Oregon. The authors of the study, Oregon Economists Eric Fruits, PhD, President of Economics International and Randall Pozdena, PhD, President of QuantEcon, Inc., studied the measures' economic impacts in two ways.
     First, using a database spanning 31 years for the 48 continental states, the effects of tax rate increases on job growth are measured empirically using regression analysis. For the second part of the study, the authors used recent Internal Revenue Service (IRS) Statistics on Income (SOI) data, and statistically examined the pattern of migration of tax filers between Oregon and the other 49 states.
     The report states, "If passed, the measures constitute a potentially significant shift of resources from private hands to the public sector."
     The following are conclusions from the study:

  • The literature is clear that raising marginal tax rates is an impediment to economic and employment growth.
  • For each percentage point increase in the personal marginal tax, Oregon's employment growth decreases by one-tenth to two-tenths of a percentage point per annum.
  • Taxpayers can be expected to react to increases in Oregon's marginal tax rates. The reaction has the effect of out-migration (or reduction in-migration) of taxpayers. Net out-migration of tax filers will be approximately 80,000 greater than otherwise over a ten year period. These lost filers are likely to have significantly higher incomes than the average tax filer.
  • The average biennial loss in Adjusted Gross Income (AGI) from Measures 66 and 67 is approximately $1.1 billion dollars. This is 50 percent higher than the $733 million first-biennial transfer of income from the private sector sought by the measures. Over ten years, about $5.6 billion in AGI is expected to be lost. Such loses reduce the likelihood of the measures generating their full anticipated revenue.
  • Finally, positive impacts of public infrastructure spending on state level output, if any, may be less than the negative consequences of suppressing private activity. In the literature, the case for raising taxes, to preserve education or health spending, is not clear when the offsetting, long-run impacts on the private sector are considered. Raising taxes to preserve transfer payments has an even weaker base. Thus, although a seemingly well-intentioned "safety-net" policy, the results actually may be to prolong the affected individuals' return to prosperity.
     "Coupled with the authors' own studies reported herein, it seems certain that the passage of the Measures 66 and 67 will slow the Oregon economy and delay its recovery from the current recession," stated the report.
     Fruits and Pozdena also warn if the measures pass, Oregon will be perceived as a state that selectively burdens business and higher income households. They state this perception will weaken investment in the state and could lead to even more job losses.
     Cascade Senior Policy Analyst and founder Steve Buckstein stated, "This study makes clear that Oregon may be embarking on a policy that will likely suppress and repel economic activity in the state. Doing this during good times would be bad enough. Doing it during one of the deepest recessions on record is very hard to understand."
     Buckstein also added, "Oregonians need to recognize that capital and people are mobile - especially the corporations and high-income individuals targeted by these two tax measures. If they move, Oregon loses the jobs that their companies, spending, and investments create. Even for those who remain, these higher tax rates will reduce the motivation to work harder and create more jobs. The result will be damaging for countless Oregonians that tax proponents claim won't be affected by these measures."

Town Hall: Get Your Questions Answered on Measures 66 & 67

      The fate of Measures 66 and 67 will be decided on January 26 by Oregonians. How do you plan to vote? Do you still have questions about these measures? What are the impacts to businesses and the state?
      At January's Town Hall Forum on January 15, our panel of experts including Oregon State Senator Chris Telfer will look at all sides of the measures. Some topics of discussion will include the pros and cons of the measures, the impacts on the state budget, and the impacts to voters.
    Get your questions answered before you cast your vote at the Bend Chamber Town Hall Forum which will take place at the Bend Golf and Country Club from 7:30 to 9 a.m.
      If you can't attend the event, the Chamber would like to give you the opportunity to have your questions answered. Please send all questions to courtney@bendchamber.org by Thursday, January 14. The answers to questions we receive will be published in the
Chamber Weekly on January 22.

In the News

     Special Election Ballots Mailed Today: Ballots were mailed out for the January 26 Special Election today. Voters will be asked to make a decision on Measures 66 and 67. The Oregon Secretary of State's Election Division has information online regarding the measures at http://www.sos.state.or.us/elections/.

     Phone Bank Volunteers needed: For those who want to help repeal the tax increases associated with Measures 66 and 67, Phone Bank volunteers are needed. Volunteers are asked to donate one hour of their time during the weeks of January 14 through January 25. If you are interested in volunteering, contact Andy High at the Central Oregon Builders Association at 389-1058.

     City to hold curb ramp educational forum: The City of Bend has scheduled a curb ramp educational forum for Wednesday, January 13. The event will take place from 1 to 3 p.m. at the Bend Municipal Court, 555 NE 15th St. in Bend. This forum will be an opportunity for interested citizens to learn about the design and construction of city curb ramps and to have an opportunity to share their priority curb ramp locations in the ADA Phase II Improvement project. For more information, contact Susan M. Duncan, Accessibility Manager, at 541-693-2141 or sduncan@ci.bend.or.us.

      PacificSource Health Plans to Acquire Clear One Health Plans, Inc.: PacificSource Health Plans recently announced it plans to acquire Clear One Health Plans, Inc. "This opportunity is closely aligned with our strategy in that it will give us a stronger presence in Central Oregon, help us expand into Medicare and Medicaid markets, and allow us to more effectively collaborate with healthcare providers to improve quality of care," said Ken Provencher, President and Chief Executive Officer of PacificSource in a recent release. Provencher also stated customers will benefit with more affordable, quality healthcare and personal service. "The combination of the PacificSource and Clear One organizations brings together two local health plans that share a common passion for both customer service and giving back to the community," said Patricia Gibford, President and Chief Executive Officer of Clear One.

Upcoming Events:

      January 13 - Business Success Program - 21st Century Leadership: Ethics, Results and Legacy. Leadership is a fluid and changing concept. Although many of the principles and traits associated with leadership are timeless, the business, social, and economic context in which leadership is demanded is dynamic. After this presentation, you will come away with answers to questions that are relevant to any organization. Whether you are small business owner, CEO of a for-profit business, staff member for a social service agency, or board member for a nonprofit, you will take away information to share with your entire organization. Former Deschutes County Sheriff Les Stiles will address the following questions:

  • What are the critical concepts to provide effective and powerful leadership in the 21st Century?
  • How do ethics, results and legacy relate to your personal and professional leadership development plan?
  • What is the role of vision and mission in your leadership plan?
  • Why is "self-reflection" essential to today's leadership?
     This session is free to attend. If you are interested in attending this event, please RSVP by January 12 at www.bendchamber.org.

      January 15 - Town Hall Breakfast - Measure 66 & 67: The Impacts to Businesses and the State of Oregon - On January 26, the voters of Oregon have a big decision to make on taxes. However, there are several questions still surrounding ballot Measures 66 and 67. What is the impact to businesses? How will a yes/no vote impact the state? How will these measures affect my taxes? What will happen to the state budget? At this month's Town Hall Forum, join our panel of experts including Oregon State Senator Chris Telfer to learn more about these ballot measures. Look at both sides of the ballot measures, and get in-depth information on the issues and the budget. This is a great opportunity to get your questions answered before you cast your vote! Please RSVP for this event by January 14 at www.bendchamber.org.