Sean C. Morgan
The City Council reached a consensus in a July 28 work session to pursue property tax rate increases of $1.45 for law enforcement and 35 cents for the library per $1,000 of assessed property value.
The current levies expire June 30, 2016. The proposed rate increase will appear before voters in November.
The increases do not necessarily result in direct increases in tax bills. Rather, they redistribute the taxes among the taxing agencies using local option levies, said Finance Director Pat Gray.
City officials have been hesitant to ask for increases in the past for fear voters may see it as a tax increase and not support the levies, eliminating the bulk of funding for library and police services.
In the meantime, the composite general government tax rate has increased by $1.25 per $1,000 to $14.7159 since 2007. Of that, 20 cents went to the city library but none of the increase to the Sweet Home Police Department.
As a result, Police Department funding has taken the hits as tax revenue is redistributed to other taxing agencies.
At the same time, Gray projects deficits in the Police Department immediately, with or without an increase.
The library is in a deficit situation immediately too, without an increase, while the 35-cent increase would keep it in the black throughout the life of the five-year levy.
That’s based on assumptions, including an annual 5-percent increase in personnel costs and 2 percent for materials and services. It assumes 32 percent loss to compression and an increase in assessed property values of 3 percent.
Staff members have estimated high and hope costs come in lower, said City Manager Craig Martin. Increasing the rate is aimed at maintaining service levels.
Councilor Jeff Goodwin, who suggested the $1.45 and 35-cent increases, said that those rate levels would restore the previous balance among taxing districts.
But Councilor Greg Mahler noted that it won’t do much more than that.
“It’s putting a Band-Aid on an artery cut,” he said.
Right now, the Police Department is on par with staffing levels around the state, said Police Chief Jeff Lynn. Sweet Home is at 1.66 officers per 1,000 population. Lebanon is at 1.67. Stayton is at 1.71. Call loads are rising too. They’re up 12 percent over last year at this point in the year.
“I think most people at this table don’t want to lose officers,” said Councilor Dave Trask.
“My feeling is the police are doing an outstanding job,” Goodwin said, and he sees a problem with the police budget going into the red in the next few years.
Trask voiced a concern about the size of the increase.
“We have to be certain we can sell this because if this goes down…,” Trask said.
If it goes down, the city will be able to put another proposal on the ballot in May, Mahler said.
People are talking to the councilors, Goodwin said, and they’ll listen when councilors explain the purpose and how it will impact taxpayers.
Trask said the police budget has been a “struggle.”
“It hasn’t been easy. I don’t want to go crazy, but I don’t want to cut it short either.”
Goodwin said he would like to restore the balance of the revenues to 2007 figures.
“They’re going to pay the same amount either way.”
“It is aggressive,” Mahler said. “You might as well go for the gusto and come back in May (if needed).”
In the meantime, Martin said, the city will try to hold costs to status quo and not see 5-percent increases annually.
Looking forward, Goodwin said, the city needs to focus on this levy and then on growing the economy.
The council was expected to formally make a decision on the proposed rate by resolution at its regular meeting on Aug. 11.
Present at the July meeting and agreeing to move forward at $1.45 for law enforcement and 35 cents for the library service per $1,000 of valuation were Marybeth Angulo, Ryan Underwood, Mahler, Mayor Jim Gourley, Trask, Bruce Hobbs and Goodwin.