A $32 million budget this year for the city shows pandemic-related belt-tightening that includes merging positions to save money and applies a safeguard to the looming future obligation of the public employment retirement system (PERS).
This doesn’t just avoid dipping into the PERS account – a temptation for cities under financial strain – but Independence is setting aside money to prepare for expected increases in that financial commitment to retirees.
“If we continue to save at the current rate the city will be able to cover a large portion of that future increase” of PERS, according to Tom Pessemier, Independence city manager. However, cost-of-living adjustments for non-union employees have been eliminated for at least the first half of the fiscal year, which began this past month.
The drafting of the budget began with “optimism in regard to growth” but the onset of the COVID-19 crisis and the “rapid dive into recession caused the staff to re-analyze the effects both in the short-term and over the next year,” he said in his statement on the 2021 budget, which was adopted this summer.
The Independence budget of roughly $32.3 million, which runs July 1, 2020 through June 30, 2021, puts Independence significantly below the budget sum of its sibling city – it’s about $38.2 million for the City of Monmouth, according to Monmouth City Councilor Laurel Sharmer.
the city’s comprehensive annual financial report.
This budget, seemingly unlike previous ones, identifies serious challenges that may lie ahead, including costs for stormwater and transportation infrastructure – though the city’s utilities in general have proven self-sustaining, with only small annual rate increases.
Another change in the budget, at least to some – including City Councilor Marilyn Morton – is that city spreadsheets no longer look like a jumble of confounding interfund transfers. A few years ago, Councilor Morton asked for more fiscal transparency, particularly in an area that seemed confusing to almost anyone who didn't have deep accounting knowledge: those interfund transfers.
Interfund transfers refer to taking money from one account and placing it in another, in order to have the necessary funds available when needed. The city has many funds – water & sewer are familiar ones – and movement among accounts is a fairly common practice by cities. However, back when Councilor Morton made the request, "a lot of this interfund lending wasn't clearly disclosed," she said.
Interfund transfers are seen as a problem in other cities, too. Nan Willis, Monmouth’s outgoing budget-committee chair, disparaged them, calling the practice a “shell game,” at a recent city council meeting. The City of Dallas has taken steps to cease interfund transferring altogether.
To some extent, Councilor Morton’s past calls for more transparency fell on deaf ears. "I think that has changed with a new administration," she said, referring to the hiring of Tom Pessemier, city manager. Interfund transfers still occur, but "it's improved," she said, adding that there is more clarity that makes money easier to follow. "Now we have more information about when the (interfund) loans are made, where they go, and when they are closed (repaid)," she said.
Additionally, borrowing money has gotten less expensive for the city with the change to a streamlined document. This was taken into account by Standard & Poor’s (S & P), an international bond-rating agency, when the city recently refinanced bonds. The rating, which went from an A- to an A, put the city in a higher confidence ranking; The highest grade, triple-A, is the most desirable – but it’s uncommon for local governments, according to a state authority.
One weak spot identified in the bond report by S & P was the relatively high level of debt payments the city is making, which were judged to be consuming a potentially worrisome chunk of the budget. Asked by City Councilor Shannon Corr if that was “the issue, the cost of the debt?”
Gloria Butsch, Independence finance director, affirmed that it was cited as an area that needs improvement by S & P. Asked about the overall debt, now at $43 million, Councilor Morton said she believes it’s being managed effectively.
"In earlier years, much of what was highlighted centered on the contribution of MINET and how leveraging our high-speed internet capabilities has been an integral part of our economic development program," according to Ms. Butsch.
More recently, emphasis has been placed on the acquisition of property for Independence Landing. “This time, however, we were able to demonstrate that this was a good risk,” she explained, showing S & P “all of the positive results, along with the improved financial outlook for the Urban Renewal Agency.”
COMING: NEW CITY FISCAL POLICIES
City financial policies are scheduled to be reviewed this year, and revisions will be presented to the Independence City Council periodically. More frequent reports on spending also are planned, according to Independence Finance Director Gloria Butsch, who referenced these coming changes during city council sessions this year.
The city will be seeking approaches that reflect current “best practices,” she said. The announcement came at a time when the Oregon Economic and Revenue Forecast, published this past June, confirmed a deep recession. However, even before the bleak pronouncement, one new protocol for accounting practices was established. The aim is to avoid the kind of error that was found during an audit of the city’s books a couple of years ago. At that time, the city’s outside auditor, Merina & Co., detected an error called a “material deficiency.”
That is a term which generally reflects an omission, and it requires a “plan of action” to help prevent it from happening again. The plan is required to be filed with the Oregon Secretary of State. The city councilors agreed in 2019 to contract with an independent consultant in the future, to look over the documents of the initial audit. It was carried out by the firm Smith-Wagar Brucker Consulting LLC. A member from the company reviewed the closing entries and draft the financial statements for the audit, Ms. Butsch said. So it is now in place. --AS
A group called “No Fake Emergencies 2022” has announced they're beginning circulation of a ballot initiative that seeks to reform the way emergencies are handled in the state legislative process. The petition was the subject of a news release by state Rep. Mike Nearman (R-Independence). The initiative, which is being spearheaded by two other Republican legislators, asserts that by declaring a bill to be an emergency, the legislation not only takes effect upon being signed by the Governor, it removes the ability of the public to subject the legislation to a referendum, where it can be effectively vetoed by the people. “This process is being abused by being applied to bills which are not emergencies, but to avoid the referendum process,” according to the statement. The change would require a two-thirds majority vote on most bills declared to be an emergency. The campaign needs to gather 149,360 signatures by July of 2022 to make the November ballot of that year. -- AS
Over the last two decades, Polk County has increased by more than 60 miles of roadway, reaching 470 miles of road. Sadly, some of the lesser thoroughfares have remained nameless, according to Polk County Surveyor Eric Berry. These unidentifiable byways make up only a tiny percentage of the road count, but still...they have no distinguishing moniker, he said.
What to do? Perhaps naming rights could be sold to raise a little money for county coffers, joked Mike Ainsworth, commission chair of the Polk County Board of Commissioners. After all, he paid $1,800 about a decade ago to have his wife's name, DeAnn, appear on a street by the Willamette River in Independence. It was for a charitable cause, he explained – and he said he's only kidding about doing the same in the county. So the road-name challenge remains. --AS
A VARIABLE INTERPRETATION
When Mike Lodge, a longtime resident of Independence, stopped in a few weeks ago at the liquor store a couple of blocks from his home, the sign on the door surprised him. “No Shirt, No Shoes, No Service,” it stated. Lodge was wearing both, but he had on a mask, too – and he’d expected that requirement to be listed. “There I was, with one on my face,” Lodge said. “But not the guy inside, at the counter.”
The clerk said the mask isn’t required, Lodge recalled. So, Lodge started driving about 10 miles -- to Dallas or West Salem -- when he wanted to buy his cocktail mix. At those liquor outlets, postings at entrances clearly stated that masks are necessary. “My feeling is that everybody needs to cooperate on this issue, whether they believe it works or not – it helps us all,” Lodge said. “And the risk far outweighs the inconvenience.”
A small, gray-lettered sign on the liquor store's front door states "face masks required" then adds that "if you are not wearing a mask, Independence Liquor will assume you have a Federal ADA medical condition that prohibits it. (Per Federal ADA laws we cannot ask customers why a mask is not being worn)." The store owner indicated inquiries about business practices weren’t going to be answered.
In fact, masks are mandatory for retail employees in liquor stores, unless an employee needs to be provided an accommodation under the Americans with Disabilities Act. “In that case, the retail agent could provide an employee with a face guard instead of a mask,” said Mark Pettinger, spokesman for the Oregon Liquor Control Commission (OLCC). The liquor store in Independence has been the focus of several inquiries to the OLCC, he noted.
Yet masks, as well as other measures against the spread of COVID-19, appear to be a significant source of questions -- and complaints, according to the Oregon office of Occupational Safety and Health Administration (OSHA). Since March, the state’s OSHA has received almost 8,300 complaints about non-compliance, compared with the roughly 2,000 that occur in a typical year, said Michael Wood, OSHA administrator.
In Oregon, OSHA is moving forward to create a “temporary rule,” which would extend the pandemic provisions beyond the legislatively imposed deadline this month, to February next year. However, in late July, the Freedom Foundation, a non-profit conservative group, filed a legal challenge with the Oregon State Court of Appeals against Gov. Kate Brown’s order on masks. A decision is pending.
The divide also can be seen in Independence, though it’s been a fairly uncommon sight, according to merchants. In one incident, a frustrated customer told another patron, a stranger, loudly and angrily about the alleged ineffectiveness of masks while the two waited for their take-out. The owner politely ignored the outburst and so did everyone else.
"It should, at this late date, go without saying that the science says it (mask-wearing) will hasten control of this pandemic and save lives," said David Clyne, a resident of Independence and the former city manager. In addition to providing a safeguard against coronavirus infection, "the mask sends a message that I care about your well-being, not just my own."
Some people are simply confused, said Sue Barker, who manages the city’s Riverview Farmers Market. “When they’re outside, some people don’t think they need to cover their face at all,” she said. However, when within six feet of someone else, they do, she noted. Most are agreeable when she tells them they need to either put on a mask or increase their personal space, Barker added. She has a pool noodle she playfully uses to keep mask-less customers at a six-foot distance. “It works and they think it’s funny,” she said.
At Jubilee, the dessert shop at Main and Monmouth streets, owner Dana Heuberger feels similarly. “Most people (not wearing masks) are very nice when I tell them -- and they step outside,” she said. Then a cupcake, or another of her creations, is delivered curbside.
“I do feel sorry for business owners,” said Craig Pope, a member of the Polk County Board of Commissioners and the designated “point person” for the county health authority. “Should we be expecting them to enforce this? In some cases, it’s difficult,” he said. Recently, while dining out, he saw a group of young men and women seated closely together at a table. “What’s the restaurant manager supposed to do? Go over and ask if they’re actually family?”
The answer to that question appears to depend on the state agency. Though Oregon’s OSHA has indicated an intent to focus on outreach and education, “if complaints are voluminous or significant enough it may issue fines with the first reported violation,” according to an analysis by Davis Wright Tremaine, a law firm in Portland. Conversely, the Bureau of Labor and Industries “may investigate, fine or even bring a lawsuit against businesses that discriminate on the basis of disability by failing to accommodate either customers or employees, if accommodation is possible,” according to the legal team’s advisory.
--AS
Masks have proven to be far more divisive than health authorities could have predicted. Gov. Kate Brown's orders, that face coverings need to be worn indoors in business establishments and outdoors when a six-foot distance cannot be maintained, are a continuing subject to debate for some, even though President Trump has begun encouraging their use when social distancing isn't possible. In this essay, by two citizens known for their volunteerism in the community, they discuss why pandemic control measures like face masks are so essential in a time that’s affecting us all. --AS
The World of Face Coverings
By David Clyne and Peggy Clyne, Residents of Independence
The two of us feel pretty lucky. We no longer need to work to survive (though at times working to thrive may occur) as we are both retired from public service positions. While at many times our work was both challenging and quite stressful, neither of us is envious of those left trying to make a living in these incredibly stressful times.
While neither of us are native Oregonians, collectively we have lived in this amazing place for 65 years and feel qualified to call ourselves semi-natives. Why does that matter? It doesn’t, but one thing we both learned is that this is a special place occupied by special people with a unique ethic of truly caring for each other. “Do you need help” could be the State slogan.
Well the answer is now “yes.” We need help. We need help from all of us keeping Oregon a special place where our neighbors can safely venture out, where we can start seeing our families again in care facilities, hospitals, and yes even at funerals.
We also need help for our business community. They have suddenly become a battleground over the wearing of face-coverings. Putting aside for the moment the issue of why wearing a mask is the correct thing to do, let’s chat about why it is the only responsible thing to do.
Before going further with this, let’s also put aside the notion of whether
it is the politically correct thing to do. If folks want to politicize their masks with political messages displayed prominently on them, please do so. After all, this is of course election season. It makes no difference (short of a few obviously offensive symbols) what the messages read, just that they are worn at the appropriate times.
Back to our business community. Every business has the challenging mission of providing services, products, jobs and making a living. Tough job indeed even in the best of times for downtown retail.
In this new world, they have also become law enforcement by no choice of their own other than their choice to reopen responsibly in the middle of a pandemic. Not all businesses have succeeded in doing so and some that we know won’t succeed at all or have already called it quits.
The law is clear for these businesses; mask yourself, your employees and your customers or face steep fines that they can ill afford. We are sure if you ask the owners of any of our small downtown businesses if they are looking forward to a call from OSHA that the answer will be “no.” Any business, small or large, can receive a fine of up to $10,000 for not complying with state guidelines. Is it fair to our businesses to ask them to assume this risk?
We all want to see this come to an end sooner rather than later. We are asking that we all do our share by at least masking up and giving our businesses a chance to survive without having to “pick sides.”
For those businesses that are making their own “statement” against masks, please think again. We are all in this together. The science is overwhelming. It is not a political choice, it is a public health and customer service one.
Finally, for those businesses that are unwilling to confront their customers that are unmasked, we ask that you too think hard about what is at risk. We do so when we try to shop with you.
These are truly tough times. Let’s remember our Oregon values and get through this together.