City Government

05-17-2006 03:57 PM

City voters reject restaurant tax
More tax issues are waiting in the wings

By TIM BURLESON

GRANTS PASS, OR - City voters didn't bite on the idea of a 4.85 percent restaurant tax proposed by the Grants Pass City Council. The issue failed with 77 percent voting against. The City had hoped to raise $3 million yearly with the tax to be used for Public Safety, public school extracurricular programs, parks, a community center and drug prevention.

Voter turnout countywide for the primary election was reported to be 45 percent.

The City will now how have to decide how to raise the funds it says are needed for Public Safety, including the construction of two new Public Safety buildings south of the Rogue River. One building is planned for the "Texas Property" on the Parkway and another in the Redwood Area.

One option the City will consider is putting a levy before the voters during this November's General Election. The City has said that an operating levy in the amount of 60 cents per thousand of assessed value on property would be needed to generate the $960,000 yearly needed by Public Safety.

Another option that has been discussed is a "cell phone tax" on City residents. It has been estimated that such a tax could generate approximately $1 million in yearly revenue.

A gas tax has long been discussed by City officials as a way to help pay for road maintenance. A gas tax is often referred to as "third leg" in a "streets funding package" to pay for maintaining City streets. The first part of the streets funding package was Transportation System Development Charges (SDC) adopted by the City in the fall of1999. SDCs are fees levied on new development to help the City recover costs associated with building infrastructure needed to serve that development. The second part of the package was a Transportation Utility Fee approved by the City Council in July 2001. For single-family residential customers this added a $3 fee added to monthly water and sewer bills.

Another issue that will be facing County voters during the General Election in November is the creation of a library district in Josephine County. The result of a petition effort, this issue has already qualified for the ballot. If approved by voters, this district would add 55 cents per thousand of assessed value in yearly property taxes.

In the next year or so Josephine County voters may also be faced with an increase in their property taxes as the County continues to struggle with the loss of O&C funds. The rate could approach $3 per thousand of assessed value.

Reach reporter Tim Burleson at 761-0195 or tim@grantspassclimate.com

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