Baker City manager Barry Murphy recommends the city council reinstate a public safety fee, albeit at a lower rate that the one briefly in effect last fall, starting April 1.

In a report to councilors for their meeting Tuesday, Feb. 27 at 6 p.m. at Baker City Hall, 1655 First St., Murphy wrote that with a shortfall in the general fund estimated to be at least $1 million when the fiscal year starts July 1, the city needs more revenue even if voters approve a five-year property tax levy slated to be on the May 21 ballot.

The city wouldn’t start receiving the tax levy revenue for several months, and without another source, the general fund deficit would increase, Murphy wrote in the report.

A previous city council enacted a public safety fee, effective Oct. 1, 2023. The amount was $15 per month for residential water-sewer customers, and $50 per month for commercial accounts.

The current city council decided in November to stop assessing the public safety fee.

In his staff report, Murphy suggests a monthly fee of $12 for residential accounts and $25 for commercial. A draft ordinance that councilors will consider includes maximum monthly rates of $15 and $30, respectively.

The city would have to use public safety fee revenue for salaries in the police and fire departments, according to the draft ordinance. Those two departments make up about 57% of the $7.5 million general fund.

The property tax levy would increase taxes by $1.38 per $1,000 of assessed property value. That equates to a yearly increase of $207 for a house with an assessed value of $150,000.

(Property tax statements include both the assessed value, on which the tax bill is based, and a real market value. The latter value is almost always more, and sometimes substantially more, than the assessed value.)

The levy would raise about $858,000 the first year it was in effect, according to Murphy’s report to councilors.

Also on the council’s agenda Tuesday is a proposed resolution calling for the city to increase, from 5% to 7%, the franchise fees it collects from utility companies that use public rights-of-way. Those include Oregon Trail Electric Cooperative, Cascade Natural Gas and telecommunications companies.

The city hasn’t increased franchise fees for more than 15 years.

The city collects about $988,000 annually from franchise fees at the 5% rate, and raising it to 7% would boost annual revenue by about $395,000, according to Murphy’s report.

With the increase in franchise fees, Murphy wrote in his report, the council could potentially reduce either the franchise fee, or the property tax levy if voters approve it, in the future.

Councilors will also discuss the possibility of deeming short-term vacation rental homes as commercial properties. Councilors have previously broached the idea of charging an annual fee for such properties.

And councilors will talk about imposing a business license fee, something the city doesn’t require now.

Other agenda items

• A proposal from Fire Chief Todd Jaynes to deploy two city ambulances and two wildland firefighting trucks to wildland fires. The city would be paid for the use of the vehicles, which would be operated by contract employees, not city firefighters.

• A proposal to increase salaries for the city’s non-union employees.