News and Opinion from Sisters, Oregon
News and Opinion from Sisters, Oregon
The committee is hunting for ways to raise revenues to fill a widening hole in the city's budget for the coming year.
The city is short about $160,000 of the amount department heads say they need to properly operate the city. If the city cuts its budget to the bone, slashing two police officer positions and all maintenance and equipment purchases, the city would be short about $24,000.
Any move to generate new revenues must be approved by Sisters voters, and the budget committee and the city council are trying to decide what measures should be placed on the May ballot.
A food and beverage tax is just one of the ideas the committee is exploring. They have also proposed raising business license fees from $43 to $100 per year, which could gain the city $17,328. A 1-1/2 percent hike in the transient room tax could provide an additional $20,774.
The city may also ask voters for an increase in the tax base to make up the approximately $49,000 revenue loss brought by the Measure 47 tax roll back.
Some committee members favored asking for a bigger tax base increase to make up a larger portion of the deficit.
"Asking just for the tax base back won't fix the problem," said Mayor Steve Wilson. "I'm a fan of letting the voters decide on a realistic budget, and if they say no they have to live with the consequences. We can run on bare bones. Their decision will be four police officers and no maintenance."
Some cautioned against asking for too large a tax base increase. Others noted that a large portion of the property taxes -- about 60 percent -- are paid by property owners who live outside the city limits and have no vote in an election to set tax levels.
Most of the committee's proposals seemed to get a favorable -- or at least tolerant -- response from audience members. But proposals for a food and beverage tax met a storm of protest.
Restaurant owners believe that singling out one sector of the business community to charge and administer a tax is unfair, and they expressed fears that taxing diners could drive business away from Sisters.
John Keenan of the Hotel Sisters argued that tourists might not object to a sales tax immediately, but they would remember that Sisters was the only place where they were taxed during their visit to Central Oregon.
"I don't think they'll forget that," he said.
Dave Elliott of Ali's argued that there are serious costs to a business to administer such a tax and that singling out restaurant owners to bear those special costs is not right.
"How fair is that," he asked, "to put the administrative costs on those purveyors?"
In fact, most of the audience indicated that, while they were skeptical of a general sales tax, it seemed more equitable to them than a food and beverage tax.
The committee itself was divided on the issue. Wilson argued that such taxes should be reserved for what he called a "heroic solution."
Committee chair Gary Miller argued in favor of a food and beverage tax as a way of tapping tourist dollars and taking the burden off local taxpayers.
"I think a short term restaurant tax in the middle of the high season could generate a tremendous amount of dollars," Miller said, "and in the high season I don't think it's going to have an impact (on the restaurants)."
Committee member Jean Cooper said she did not necessarily support the tax, but she said the voters' voice ought to be heard. She, like city councilor Gordon Petrie, favors putting a proposal on the ballot and letting the voters say yes or no.
Other ideas were discussed, ranging from having the city's independent water fund pay into the general fund to cover its administrative costs, to selling the donated site of a future city hall.
The city must file by March 20 to get any revenue generating proposal on the May ballot. The budget committee will meet again February 19 to choose and further refine its proposals.
Jim Cornelius is editor in chief of The Nugget and author of “Warriors of the Wildlands: True Tales of the Frontier Partisans.” A history buff, he explores frontier history across three centuries and several continents on his podcast, The Frontier Partisans. For more information visit www.frontierpartisans.com.
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