The Estacada News runs the most comprehensive article yet on the detrimental effect of requiring every fee increase to be approved by the voters, at a cost of $2500 per election.
Estacada, OR city measure aims to cap tax increases at 3 percent
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Measure 3-346 will ask voters [on November 3, 2009] to consider requiring voter approval of all proposed taxes, fees and charge increases of more than three percent. The proposed measure is retroactive to August 2008, meaning that taxes, rates and fees that have been increased 3 percent or more since then will be rolled back.
“If this measure passes, it would absolutely cripple the city,” Arnold said. “I’m hoping and praying the citizens of Estacada will see that and know this would really impact the city.”
Approved in 2008 in Damascus, a similar measure forced city officials return to the fees and rates structure adopted by the city in 2006 because of its two-year retroactive clause. Rates and fees from two years earlier were significantly lower than present-day rates, and the action cost the city an estimated $200,000, Damascus City Manager Jim Bennett said.
“It certainly has reduced significantly our street improvement budget,” Bennett said. “It’s limited our ability to go out and repair and reconstruct streets. The bulk of our fees were coming from franchise fees, but, as a result of the measure, we sort of had to dial it back and think smaller.”
“I’ve heard quite a few people say, ‘If the city wants to increase the cost of a particular thing, convince me you need it, and I’ll vote for it.’ I basically feel that way. If the city can convince me of a need to raise rates, I’ll vote for it.”
But that’s not what happened in Damascus last year in the November election. In an effort to return fees and rates to present-day value, three measures were presented to voters to raise the rates for franchise fees, permits and system development charges that help pay for infrastructure, but they were all defeated.
Under the proposed measure, rate and fee increases of more than three percent would require voter approval at a cost of an estimated $2,500 in election fees for every proposed tax.
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