A proposed tax to fund future wildfire prevention and protection
By Anne Scheck
Trammart News Service, February 16, 2024
In the opening days of the 2024 legislative session this week, Rep. Paul Evans took the first official step toward creating a path that would add a fee to property taxes for building a wildfire emergency fund, a proposal that attracted a crowd to the hearing room and drew opposing testimony from the chair of the Polk County Board of Commissioners.
“This doesn’t belong in the short session,” said Polk County Commissioner Craig Pope, as applause broke out among attendees. The concept, which would amend the Oregon Constitution and allow formation of an administrative authority for funding public safety, is not the “methodology for us to be successful,” Pope said, adding that the state’s wildfire-fighting ability is a pressing cause.
It was only a few weeks ago that Evans announced the plan in a meeting with constituents – to recommend 25 cents be added for every $1,000 of assessed value used to calculate the property tax bill – so that emergency services for public safety could be funded, specifically for wildfires.
In the intervening weeks, scores of Oregonians wrote lawmakers to protest the idea. One was Margaret Ann Crowder who lives within a few miles of Evans. She called the bill, HJR 201, a “smash and grab” attempt.
However, the process is entirely in the hands of Oregonians – a referral to the 2024 ballot that provides only a constitutional framework, Evans pointed out. ”It’s not anything but the most transparent process you could possibly have,” he told the hearing committee, which included Rep. Anna Scharf, who represents a central swath of Polk County.
Mike Shaw, fire protection chief for the Oregon Department of Forestry, also testified. Though he identified his agency as being neutral on the bill, Shaw warned that wildfires are a growing environmental hazard for all Oregonians, with a devastating potential for areas that now stretch across the state.
In a brief interview this week, Ben Stange, chief of Polk County Fire District No. 1 in Independence, echoed the testimony of Shaw. The risk has grown substantially over the past decade, Stange agreed. Finding the appropriate funds for fire suppression and containment is "everyone's problem," he said.
Those views also were expressed by about a dozen customers at New Morning Bakery in Dallas. “I think this (wildfire threat) is a serious issue for everybody, but we need to know more about the tax if that’s going to be financing a solution,” said one, a view reiterated by several others at the same table.
(Note to follow the bill, HR-201, Oregon provides a simple-to-use bill tracker at this link: https://gov.oregonlive.com/bill/2024/HJR201/) ▪
A local accounting firm appears to offer the clearest look yet at the city's financial picture
By Anne Scheck
Trammart News Service, February 16, 2024
Independence’s financial report for the fiscal year 2023 shows an outstanding debt of nearly $37.5 million – a decrease of $1.5 million from the prior year – but the city is recording more than $4 million in MINET loans as a “doubtful account,” the financial term for a sum that’s unlikely to be repaid.
In fact, Independence is exposed to risk of loss through loans made to MINET, according to the report. The finding appears to contradict statements by City Councilor Marilyn Morton, a former employee of MINET, who said the municipal fiberoptic is on track to return revenue loaned to the company by the city over the years for shoring up periodic shortfalls.
Several weeks ago, during a work session discussion on the debt, Morton observed that MINET is now paying its obligation to the city. Although a first-time interest-only payment was made by MINET this past December, it’s too soon to tell whether and when full payments will be made, MINET executives said. However, the company appears to be heading into profitability that prevents it from needing any more city loans.
Asked about the doubtful account regarding MINET, the city’s communications director, Emmanuel Goicochea, failed to respond to repeated requests for clarification regarding MINET, which has high customer-satisfaction ratings and is undergoing expansion. Goicochea also didn’t address other queries from Trammart News about the report, including a violation of an Oregon Revised Statute listed within it.
Independence Finance Director Robert Moody noted that the municipal audit, by Aldrich CPAs + Advisors LLP of Salem, becomes the city’s financial statement upon acceptance. The document was presented to the Independence City Council Tuesday night. “It’s ours,” Moody told councilors.
The report, which seems written in a clear and more easily understandable way compared with those submitted in past years, shows the city went substantially past budget in some areas, including for administrative costs, economic development expenses and tourism expenditures. The city also failed to obtain three informal quotes for procurement purposes, as required in ORS 279, according to the document.
An analysis of the report suggests that the decision to enable development of Independence Landing, along the riverfront, hugely increased the value of the property there, providing the means for more successful debt management in the urban renewal area.
(Trammart News plans to take a closer look at city debt, with the help of outside experts, as the budget process gets underway this spring.) ▪
Independence approves a $10 million loan for wastewater treatment plan with one abstention
By Anne Scheck
Trammart News Service, February 16, 2024
A $10 million loan to design a plant upgrade for the treatment of wastewater was approved by the Independence City Council this week with one exception – Councilor Dawn Roden abstained from the vote.
She’s worried about taking on more debt for the city, with a rise in sewer-water rate charges for the residents to help pay for it, she explained after the meeting.
The loan – from the Oregon Department of Environmental Quality Clean Water State Revolving Loan Fund – is scheduled to be paid back, in part, through sewer-user rates under a rate schedule approved by the city council about a year ago, according to Gerald Fisher, the city’s public works director, who introduced the resolution for the loan at the last city council meeting.
The action is part of a move to implement the Independence Water System Master Plan, which identified the Willamette River as a new water source to meet projected water demands in the future. A new water treatment facility will be needed in order to provide this level of treatment, according to the plan.
In January, the city council approved acquiring several acres of land along Corvallis Road south of town as the building site for the facility, a new project originally estimated to cost $44 million. Polk County is expected to be a partner on the project.
At a recent meeting of the Polk County Board of Commissioners, the county’s director of community development, Austin McGuigan, reported that the Independence plan appears to allow a regional solution to meet water needs. “Independence has expressed to Polk County they are committed to sizing this for the region,” he said.
Since the county also has water rights on the Willamette River – secured in 2007 – the Independence facility could help the county “maximize” their water rights, as well, McGuigan said.
“This is incredible work,” said County Commissioner Jeremy Gordon, who praised the idea of joining the proposed project. McGuigan also reported that a document that provides for intergovernmental agreements with other water agencies is underway and should be completed in draft form within the next few months.
Both the Monmouth and Dallas city managers, when questioned about their role in the project by Trammart News, indicated there are municipal considerations that need to be evaluated and addressed before such decisions are made. Monmouth has no provision for partnering with Independence in Monmouth’s own master water plan; Dallas is currently at work on meeting water demand through the city’s Mercer Dam project.
(Trammart will follow this issue of a regional solution to water needs as it continues in 2024)
By Anne Scheck
Trammart News Service, February 16, 2024
In the opening days of the 2024 legislative session this week, Rep. Paul Evans took the first official step toward creating a path that would add a fee to property taxes for building a wildfire emergency fund, a proposal that attracted a crowd to the hearing room and drew opposing testimony from the chair of the Polk County Board of Commissioners.
“This doesn’t belong in the short session,” said Polk County Commissioner Craig Pope, as applause broke out among attendees. The concept, which would amend the Oregon Constitution and allow formation of an administrative authority for funding public safety, is not the “methodology for us to be successful,” Pope said, adding that the state’s wildfire-fighting ability is a pressing cause.
It was only a few weeks ago that Evans announced the plan in a meeting with constituents – to recommend 25 cents be added for every $1,000 of assessed value used to calculate the property tax bill – so that emergency services for public safety could be funded, specifically for wildfires.
In the intervening weeks, scores of Oregonians wrote lawmakers to protest the idea. One was Margaret Ann Crowder who lives within a few miles of Evans. She called the bill, HJR 201, a “smash and grab” attempt.
However, the process is entirely in the hands of Oregonians – a referral to the 2024 ballot that provides only a constitutional framework, Evans pointed out. ”It’s not anything but the most transparent process you could possibly have,” he told the hearing committee, which included Rep. Anna Scharf, who represents a central swath of Polk County.
Mike Shaw, fire protection chief for the Oregon Department of Forestry, also testified. Though he identified his agency as being neutral on the bill, Shaw warned that wildfires are a growing environmental hazard for all Oregonians, with a devastating potential for areas that now stretch across the state.
In a brief interview this week, Ben Stange, chief of Polk County Fire District No. 1 in Independence, echoed the testimony of Shaw. The risk has grown substantially over the past decade, Stange agreed. Finding the appropriate funds for fire suppression and containment is "everyone's problem," he said.
Those views also were expressed by about a dozen customers at New Morning Bakery in Dallas. “I think this (wildfire threat) is a serious issue for everybody, but we need to know more about the tax if that’s going to be financing a solution,” said one, a view reiterated by several others at the same table.
(Note to follow the bill, HR-201, Oregon provides a simple-to-use bill tracker at this link: https://gov.oregonlive.com/bill/2024/HJR201/) ▪
A local accounting firm appears to offer the clearest look yet at the city's financial picture
By Anne Scheck
Trammart News Service, February 16, 2024
Independence’s financial report for the fiscal year 2023 shows an outstanding debt of nearly $37.5 million – a decrease of $1.5 million from the prior year – but the city is recording more than $4 million in MINET loans as a “doubtful account,” the financial term for a sum that’s unlikely to be repaid.
In fact, Independence is exposed to risk of loss through loans made to MINET, according to the report. The finding appears to contradict statements by City Councilor Marilyn Morton, a former employee of MINET, who said the municipal fiberoptic is on track to return revenue loaned to the company by the city over the years for shoring up periodic shortfalls.
Several weeks ago, during a work session discussion on the debt, Morton observed that MINET is now paying its obligation to the city. Although a first-time interest-only payment was made by MINET this past December, it’s too soon to tell whether and when full payments will be made, MINET executives said. However, the company appears to be heading into profitability that prevents it from needing any more city loans.
Asked about the doubtful account regarding MINET, the city’s communications director, Emmanuel Goicochea, failed to respond to repeated requests for clarification regarding MINET, which has high customer-satisfaction ratings and is undergoing expansion. Goicochea also didn’t address other queries from Trammart News about the report, including a violation of an Oregon Revised Statute listed within it.
Independence Finance Director Robert Moody noted that the municipal audit, by Aldrich CPAs + Advisors LLP of Salem, becomes the city’s financial statement upon acceptance. The document was presented to the Independence City Council Tuesday night. “It’s ours,” Moody told councilors.
The report, which seems written in a clear and more easily understandable way compared with those submitted in past years, shows the city went substantially past budget in some areas, including for administrative costs, economic development expenses and tourism expenditures. The city also failed to obtain three informal quotes for procurement purposes, as required in ORS 279, according to the document.
An analysis of the report suggests that the decision to enable development of Independence Landing, along the riverfront, hugely increased the value of the property there, providing the means for more successful debt management in the urban renewal area.
(Trammart News plans to take a closer look at city debt, with the help of outside experts, as the budget process gets underway this spring.) ▪
Independence approves a $10 million loan for wastewater treatment plan with one abstention
By Anne Scheck
Trammart News Service, February 16, 2024
A $10 million loan to design a plant upgrade for the treatment of wastewater was approved by the Independence City Council this week with one exception – Councilor Dawn Roden abstained from the vote.
She’s worried about taking on more debt for the city, with a rise in sewer-water rate charges for the residents to help pay for it, she explained after the meeting.
The loan – from the Oregon Department of Environmental Quality Clean Water State Revolving Loan Fund – is scheduled to be paid back, in part, through sewer-user rates under a rate schedule approved by the city council about a year ago, according to Gerald Fisher, the city’s public works director, who introduced the resolution for the loan at the last city council meeting.
The action is part of a move to implement the Independence Water System Master Plan, which identified the Willamette River as a new water source to meet projected water demands in the future. A new water treatment facility will be needed in order to provide this level of treatment, according to the plan.
In January, the city council approved acquiring several acres of land along Corvallis Road south of town as the building site for the facility, a new project originally estimated to cost $44 million. Polk County is expected to be a partner on the project.
At a recent meeting of the Polk County Board of Commissioners, the county’s director of community development, Austin McGuigan, reported that the Independence plan appears to allow a regional solution to meet water needs. “Independence has expressed to Polk County they are committed to sizing this for the region,” he said.
Since the county also has water rights on the Willamette River – secured in 2007 – the Independence facility could help the county “maximize” their water rights, as well, McGuigan said.
“This is incredible work,” said County Commissioner Jeremy Gordon, who praised the idea of joining the proposed project. McGuigan also reported that a document that provides for intergovernmental agreements with other water agencies is underway and should be completed in draft form within the next few months.
Both the Monmouth and Dallas city managers, when questioned about their role in the project by Trammart News, indicated there are municipal considerations that need to be evaluated and addressed before such decisions are made. Monmouth has no provision for partnering with Independence in Monmouth’s own master water plan; Dallas is currently at work on meeting water demand through the city’s Mercer Dam project.
(Trammart will follow this issue of a regional solution to water needs as it continues in 2024)
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