Baker City Hall.

The Baker City Council is considering asking voters in the Nov. 5 election to approve a local motor vehicle fuels tax to raise money to maintain city streets.

Councilors will discuss the idea during their regular meeting Tuesday, July 23, at 6 p.m. at City Hall, 1655 First St.

In a report to councilors, City Manager Barry Murphy suggests councilors consider waiting for a year or two to put a local gas tax on the ballot.

“Inflation and high prices continue to hurt city residents, and the city has also raised rates in several areas already (public safety fee, franchise fees, and water rates/other fees),” Murphy wrote in the report. “It may be a better option to hold off on this area until next year or the year afterwards, so the city can spread out some of these rate increases over time.”

The city has until Aug. 16 to decide whether to place the fuel tax measure on the Nov. 5 ballot.

According to state reports on local fuel sales, a tax of 5 cents per gallon on gasoline and diesel would raise an estimated $537,000 to $717,000 per year. A tax of 4 cents would raise from $429,000 to $574,000, and a tax of 3 cents would bring in an estimated $214,000 to $287,000.

The council has discussed a gas tax in the past, including a tax on gasoline only but not on diesel. Councilors could decide to ask voters for a tax on gasoline only.

Murphy noted in his report that the city’s street maintenance budget is not sufficient to reverse a trend, which dates back about 20 years, of the city’s streets gradually deteriorating.

The city receives money from the state for streets, and also uses some property tax dollars from city residents.

For the 2022-23 fiscal year, a previous city council transferred $490,000 from the street maintenance fund to the general fund to avoid layoffs in the police and fire departments.

The budget for the current fiscal year, which started July 1, does not include another transfer from the street fund.

If voters approved a local gas tax, the city could potentially divert some of the property tax revenue that now goes to streets into the general fund, which includes the police and fire departments.

In other business Tuesday, councilors will consider a proposal from Murphy to change the public safety fee for residential multi-dwelling buildings.

The city, which started collecting the monthly fee June 1, now charges $10 per unit for such structures, along with an additional $20 per month for the building itself.

The city is required by ordinance to use public safety fee revenue for the police and fire departments.

In a report to councilors, Murphy wrote that owners of some multi-dwelling buildings have complained about the additional $20 monthly fee for the building, claiming they shouldn’t be considered commercial structures.

Murphy is proposing that the council eliminate the $20 monthly fee for residential properties with fewer than five units, but continue to charge that fee, along with $10 per month for each unit, for properties with five or more units.

Councilors will also consider a proposal from Murphy to have the city continue to use a private company, Caselle, to process payroll for the city.

In a report to councilors, Murphy wrote that in April, after two employees in the finance department resigned, the city hired Caselle on a three-month contract. The contract incudes an option to extend it through March 2025, which Murphy recommends.

Murphy wrote that outsourcing payroll processing “has been helpful, but not a complete success.”

The city pays Caselle $1,750 for each biweekly pay period, not to exceed $42,000 for the one-year contract.