Baker City council to consider putting new local gas tax on November ballot

By on Tuesday, August 13th, 2024 in Northeastern Oregon News

BAKER CITY — The Baker City Council is set to deliberate on Tuesday, August 13, on whether to introduce a local gas tax measure for the November ballot.

The proposal, first discussed at the July 23 council meeting, aims to generate additional revenue for the city’s street maintenance, construction, and repair needs.

The local gas tax is being considered as a solution to address the city’s growing financial shortfall for street maintenance. According to a report from City Manager Barry Murphy, state-shared gas tax revenue has proven insufficient to maintain Baker City’s streets, even with property tax revenue diverted to the Street Fund. The proposed tax could range from 1 to 10 cents per gallon, with estimates suggesting that a 5-cent tax could generate between $537,000 and $717,000 annually.

Murphy’s report to councilors acknowledges the need for additional funds but raises concerns about the timing of the measure. He pointed out that residents are already facing financial pressure from inflation and recent increases in city fees, including public safety, franchise, and water rates. Murphy suggests the council consider delaying the gas tax measure to allow for a more gradual implementation of rate increases across different areas.

The council has until August 16 to decide whether to move forward with placing the gas tax on the November ballot. Murphy recommends seeking public input before making a final decision.

If approved by the council and subsequently by voters in November, the measure would enact a 5-cent-per-gallon tax on fuel, dedicated exclusively to street-related projects within the city.