Council hears state property-tax briefing; directs work group on public-safety fee and business-license follow-up

A state-level briefing and local discussion on municipal revenue options dominated a portion of Sutherlin’s Feb. 12 meeting, prompting the council to direct staff and local volunteers to develop proposals on a public-safety fee and a business-license program.

Jenna Jones, a tax-and-finance lobbyist (League of Oregon Cities), presented an overview of Oregon property-tax law, including Measure 5 and Measure 50 effects, assessed-value growth limits, the concept of "compression," and the practical consequences for city budgets. Jones said property taxes remain the primary local funding source but described structural limits that leave many cities exploring alternative revenue tools such as utility fees, excise taxes and targeted service fees.

Council response and local follow-up: Mayor and councilors asked staff to form a work group combining city council members, budget-committee members and a chief—s advisory committee contingent to review the League—s revenue-tool guide and recommend options for sustainable public-safety funding. Council endorsed a plan to invite three councilors, three budget-committee members and representatives from the chief—s advisory committee to meet with the existing public-safety advisory group and return recommended options in time to include revenue assumptions in the upcoming budget cycle.

Local example and guidance: Thomas McIntosh, city manager of Winston (invited by the council), described Winston’s public-safety fee experience: Winston implemented an initial $3 fee in 2019 aimed at vehicle and equipment needs and later added $5 for general police operations, for a total of $8. McIntosh said the fee was accepted locally with limited public opposition and stressed the importance of codifying a dedicated fund so fee revenues are not commingled in the general fund.

Business licensing: Staff summarized early work on a business-license ordinance and application form. Key decisions the council asked staff to return with included whether to require background checks for new applicants (staff noted some municipalities perform them and others find them invasive), the proposed license fee level (staff presented a target range of $50–$100 to avoid using licensing primarily as a revenue generator), and how to treat existing businesses versus new applicants. Council asked staff to consult other cities that use background checks and to prepare a draft application and ordinance for council review at a subsequent meeting.

Next steps: Council directed staff to schedule the public-safety work group meetings, to draft ordinance language and a business-license application for council review, and to bring recommended revenue options so they may be considered in the upcoming budget process.