By Joe Hathaway on Thursday, August 15th, 2024 in More Top Stories Northeastern Oregon News
BAKER CITY — Residents of Baker City won’t see a local tax on gas anytime soon.
The Baker City Council voted 5-1 on Tuesday evening, August 13, against placing the proposed tax on the November ballot.
Councilor Larry Pearson was the sole member in favor of putting the measure before voters. Councilor Nic Carman was absent from the meeting.
City Manager Barry Murphy had advised the council to delay any decision on the gas tax measure, citing concerns about timing and the potential financial burden on residents already facing inflation and recent city fee increases.
With the August 16 deadline looming to place measures on the November ballot, the council’s decision effectively postpones any further action on the gas tax for now.
A 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. A 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 raised 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 suggested the council consider delaying the gas tax measure to allow for a more gradual implementation of rate increases across different areas.