sustainable budget task force -...

SustainableBudgetTaskForce

December 14, 2016 8:00 AM

City Manager’s Meeting Room 501 SW Madison

(top floor)

1. Approve minutes from October 26, 2016

2. Review the draft community survey

3. Comments from the Newsletter (information)

4. Community Comments

5. Adjourn

Sus tain able Budge t Go al

The Council will continue to manage a long-term sustainable budget including the consideration of possible new or expanded revenue sources. An inventory of known infrastructure and unmet program needs, including public safety, will be compiled and prioritized by December of 2015. By September 2015, possible new or expanded revenue sources will be identified that could fund these program and infrastructure needs. By September 2016 the Council will create and begin implementing a long-term revenue plan.

Sustainable Budget Task Force October 26, 2016 Page 1 of 2

DRAFT CI TY OF CORVALLI S

SUSTAI NABLE BUDGET TASK FORCE ACTI ON M I NUTES October 26, 20 16

The City of Corvallis Sustainable Budget Task Force meeting was called to order at 8:02 AM, October 26, 2016, in the City Manager ’s Meeting Room, Corvallis, Oregon, with Chair Hal Brauner presiding. ROLL CALL: Members Present: Hal Brauner, Barbara Bull (8:23), Joel Hirsch, Mark O’Brien, Curtis Wright Excused: Karyle Butcher Staff Present: Nancy Brewer, Mark Shepard, Patrick Rollens Others: Mark Page

SUM M ARY OF DI SCUSSI ON:

Agenda I tem Actions/ Recommendations

Approve minutes from, September 12, 2016

Minutes were approved unanimously.


Summary from the Council Work Session

Chair Brauner stated the Council accepted the recommendation from the SBTF to move forward with an increase in the Transportation Maintenance Fee (TMF), and plans to review alternatives for phase-in in November. The Council also agreed with the recommendation to move forward with investment in water, wastewater, and storm water infrastructure on a pay-as-you-go basis rather than borrowing. Chair Brauner stated that later in the meeting the Council reviewed Financial Policies surrounding utility rates; the Policies are moving forward for Council adoption with staff’s recommendation to remove the utility rate limitation language. Finally, Council agreed with the strategy and timeline for working on revenue alternatives.

Sustainable Budget Task Force October 26, 2016 Page 2 of 2


Revenue Alternatives Chair Brauner stated that general discussion at SBTF has focused on seeking a local income or sales tax. He asked if there was consensus with this approach or if members wanted to look further at other concepts such as an entertainment or restaurant tax. Member Wright stated he thought continuing with local option levies needed to be on the list. The SBTF members were in agreement that these three revenue alternatives needed to be the focus of future work. Members also discussed the survey work to be initiated in January. Members discussed the complexity of asking unbiased questions about an issue a lot of people may not have good background information about and whether there was a way to introduce the survey with a summary. The members agreed that as survey questions are discussed, the SBTF needs to be clear about the information goals for the project so that the survey firm can provide clear feedback whether the questions will achieve the goals.


Community Comments None


Other Business Chair Brauner discussed the meeting schedule. The SBTF agreed to cancel meetings planned for November, and reconvene December 14 to discuss draft survey questions. Chair Brauner also suggested members consider whether or not to recommend to Council to sunset the SBTF. Members briefly discussed pros and cons, including what would happen if the result of the survey work showed no support for any revenue alternative and services need to be eliminated or if the alternative is to renew/ expand the levy. Some of the potential follow-up work could be done by the City Council or by the whole Budget Commission, or by the SBTF. Members agreed to discuss this further at the December 14 meeting.

The Task Force adjourned at 8:32 AM.

An audio recording of the entire meeting can be listened to at:

https:/ / archives.corvallisoregon.gov/ internal/ browse.aspx?dbid=0&mediaid=834731

https://archives.corvallisoregon.gov/internal/browse.aspx?dbid=0&mediaid=834731

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Funding Corvallis City Services:

A Survey of Corvallis Voters’ Opinions

Survey conducted by:

Oregon State University Survey Research Center

239 Weniger Hall Corvallis, OR 97331-8574

www.stat.oregonstate.edu/ src/ survey-research-center

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Q1. Are you registered to vote at your current address in Corvallis (the address this survey was sent to)?

1 Yes

2 No

Q2. How many years have you, yourself, lived in Corvallis?

1 Less than 1 year

2 1 year to 3 years

3 More than 3 years to 10 years

4 More than 10 years

Q3. Do you currently work for pay outside your home?

1 Yes, work for pay outside home

2 No, do not work for pay outside home Go to Q4

Q3a. Is your place of work located in the city of Corvallis?

1 Yes, in Corvallis

2 No, not in Corvallis

Q4. As ou a k o , Cit ser i es like poli e, fire, parks a d re reatio a d the li rar are fu ded the Cit ’s general fund which currently depends on property tax revenue. At this time the City is facing a budget deficit

with expenses outpacing revenue. Of the following, which is the most acceptable solution to you?

1 Develop a new source of revenue that will enable the City to deliver services to the community.

2 Initiate cuts in service to bring expenses in line with existing revenue.

3 Combine new revenue WITH cuts in service.

4 Don’t know/Unsure

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The City of Corvallis is considering 3 options to generate revenue for the general fund, which is the

portion of the overall budget that funds police, fire, parks and recreation, and the library. We

would like to hear from Corvallis voters which options are most favorable.

OPTION 1

Q5. One option under consideration to help fund Police, Fire, Parks & Recreation and Library services is a one percent (1%)

personal income tax for those who work in Corvallis, which is projected to generate between $10.9 million and $14.1 million

in revenue. The estimated cost to the average Corvallis worker would be about $500 per year. With this in mind, what is your

level of support or opposition for a one percent (1%) personal income tax to fund these services?

1 Strongly Support

2 Support

3 Oppose

4 Strongly Oppose


OPTION 2

Q6. Another option under consideration is a one percent (1%) general sales tax on goods and services purchased in Corvallis,

which is projected to generate between $6.27 million and $8.86 million in revenue. The estimated cost to the average

Corvallis household would be about $410 per year. With this in mind, what is your level of support or opposition for a one

percent (1%) general sales tax to help fund Police, Fire, Parks & Recreation and Library services?

1 Strongly Support

2 Support

3 Oppose

4 Strongly Oppose


OPTION 3

Q7. The City currently uses a property tax levy to fund Police, Fire, Parks & Recreation and Library services. This levy generates

about $3.7 million annually, with an average homeowner of a $300,000 home paying about $205 in property tax. The levy

will be expiring in 2019. City leaders are considering seeking support to renew the levy at its current levels, which would not

increase property taxes. What is your level of support or opposition for a renewal of the current property tax levy to help

fund Police, Fire, Parks & Recreation and Library services?

1 Strongly Support

2 Support

3 Oppose

4 Strongly Oppose


Q7a. City leaders are considering seeking support to expand this property levy to pay for additional services. This proposal would

generate about $10 million per year for the General Fund, which would add about $720 per year to the average property tax

bill. The expansion would allow the City to make long-term investments in X, Y and Z. What is your level of support or

opposition for expanding the property tax levy?

1 Strongly Support

2 Support

3 Oppose

4 Strongly Oppose


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Q8. You are i ited to help ala e the Cit ’s ge eral fu d. For this e er ise, ou ha e $ to spe d on five general

service areas. How much of the $100 would you assign to each service listed? Please assign your dollar amounts

so when added, the total is $100.

Fire $_______

Police $_______

Parks and Recreation $_______

Library $_______

Social Services $_______

TOTAL $100

Q9. Do you currently own property in Corvallis?

1 Yes, own property in Corvallis

2 No, do not own property in Corvallis

Q10. What is your gender or gender identity?

1 Male

2 Female

3 Self-identify as ___________________

4 Prefer not to answer

Q11. In 2015, what was your household income before taxes?

1 Less than $25,000

2 $25,000 - $49,999

3 $50,000 - $74,999

4 $75,000 - $99,999

5 $100,000 - $149,999

6 $150,000 - $199,999

7 $200,000 or more

8 Prefer not to answer

Q12. What else would you like to say about funding possibilities for the City of Corvallis general fund and the services

it supports?

THANK YOU FOR YOUR HELP! PLEASE RETURN YOUR SURVEY IN THE POSTAGE-PAID ENVELOPE PROVIDED.

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Brewer, Nancy

From: Jimmy Brady

Sent: Wednesday, November 16, 2016 1:19 PM

To: BudgetGoal

There is a reason why republicans have gained control of all three branches of government (for the first time since 1928). I believe the consequences of the tax and spend mentality will catch up to local governments as well.

It's time for local government to be responsible and live within their means and stop wasting our money. Just look at our local transportation system. Free! Here's an idea: Have people pay a dollar (or a quarter for that matter) to ride. How else are we paying for the beautiful buses that are driving around town, their gas, insurance, maintenance? The people I talk to on this one issue alone find it incredible that the expensive bus system in this town is free to the rider.

Edgewood drive is another example of local government wanting to waste dollars. Please walk up Edgewood drive. The idea of putting in sidewalks, etc on this street is not a good one. Not only is it not needed, but it would take away from the quaintness of the street. When citizens see photos of Edgewood drive in the GT, and the talk of more taxes, I believe they see through the propaganda.

I'm for scenario #1, and would add, charge people to ride the bus. Call it a "transportation fee"

Jim Brady

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Brewer, Nancy

From: Judith Brockington


To: BudgetGoal

Subject: Feedback

Speaking in the vernacular of today’s political activists: I was outraged today when I began reading your bulletin “Corvallis at a Crossroads” and the 1st thing I saw was that half of it was in Spanish!! Publishing such materials in Spanish is a huge waste of city funds because it provides our Spanish speaking citizens with no incentive to become proficient in English. If they choose to live in the US they should get a clue that English is the common language and the quicker they adapt to English the better off they will be. I was so irritated by the dual language that I almost read no further. If you want my support for budget issues do not waste time, effort and money on printing in Spanish. David Pastorius

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Brewer, Nancy

From: Mullens, Carrie


To: Rollens, Patrick; Shepard, Mark; Brewer, Nancy

Subject: comment about the SBTF newsletter sent today

Linda Miller came in this afternoon to voice her complaints/comments to Mark about the SBTF newsletter sent today: 1. Timing was poor considering everyone is paying their property taxes right now. 2. Understand the desire to include Spanish; however, mixing it up throughout the entire document makes it very difficult to read for both English & Spanish readers. “You probably offended everyone” by making it so difficult to read.

Disclaim er: This e-m ail m essage is a public record of the City of Corvallis. The contents m ay be subject to public disclosure under Oregon Public Records Law and subject to the State of Oregon Records Retent ion Schedules. (OAR: 166.200.0200-405)

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Brewer, Nancy

From: Tim Leslie


To: BudgetGoal

Subject: Corvallis at a Crossroads

To: City of Corvallis Re: Corvallis at a Crossroads publication I would strongly favor renewing (and, if necessary, increasing) the local option levy. As a longtime Corvallis resident and as a property owner, I would find a once‐yearly payment as part of my property tax to be much preferable to an income tax, sales tax, or additional service fees. A sales tax would be my least preferable option. Thank you. Regards, ‐ Tim Leslie, 1320 NW Hillcrest Dr., Corvallis ‐‐

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Brewer, Nancy

From: ariana chandler


To: BudgetGoal

Subject: Budget

I support renewing and, if necessary, increasing the property tax levy. Thanks, Ariana Chandler

Get Outlook for iOS

6

Brewer, Nancy

From: Roger Aho


To: BudgetGoal

Subject: Corvallis Future Funding

Trim the fat by: Reduction of force: City non‐essential positions. Do more or the same with less. Cut non‐essential programs. And many more areas of potential waste and/or abuse of budgetary spending. Do not ask for more money from hard working tax payers. Let's get it together City Council. ‐R

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Brewer, Nancy

From:


To: BudgetGoal

Subject: Corvallis at Crossroad

On your graph I think the green line should be identified as Scenario #3 and the red as Scenario #1.

At this point my funding preference would be local option levy.

Richard L. Mueller 4395 NW Queens Ave.

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Brewer, Nancy

From:


To: BudgetGoal

Subject: feedback

Thank you for sending the flyer. I have always been curious as to what taxes are being paid all those apartment complexes that are all over the city. As a single home owner‐ I pay property taxes‐ now that we have so many of these huge complexes‐ why isn't there more revenue for our services? C. Harris

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Brewer, Nancy

From: Daniel Lewer

Sent: Thursday, November 17, 2016 3:14 PM

To: BudgetGoal

Subject: Corvallis at a Crossroads

To Whom it May Concern, - further methods of taxation that would eliminate the need for local income tax an general sales tax 1. High taxation on marijuana sales 2. Tax the companies that utilize our HWY but that don't operate in our county i.e - Dahl disposal uses our HWY to get to the dump three times per day. 3. Pass/vote on a bond measure that increases police presence - with specific aim to control our homeless population record of violence and clean up the downtown area such that more families want to move to Corvallis and thus increasing individuals to tax, not increasing tax on individuals. - Dan Lewer

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Brewer, Nancy

From: Claudia Howells


To: BudgetGoal

Subject: Feedback

We received your newsletter today because we own property (a single house, where our son and two roommates live) in Corvallis. We live in Salem. We want to compliment you on a clear and honest explanation of the financial choices facing Corvallis. Those challenges face nearly every city in Oregon, but it is rare to see the straightforward approach that you are taking. We are both retired state employees and both worked in areas that gave us a very good understanding of Oregon's revenue and budget situation. We also know that most people really don't understand how things work, so it is refreshing to see an accurate explanation of the "how we got here" and "what the options are." We will not be able to vote, but our tenants will. All three actually pay attention to politics, even local politics. Here are our thoughts about the options: 1. Local income tax----perhaps, if it is less regressive than the state of Oregon's, which actually hits lower income people pretty hard. 2. A sales tax----Sales taxes are regressive. It may be fine to hit the students, but it will also hit lower income people, and it may mean that more people simply drive to Albany or Salem to shop. It will not be good for your local retailers. 3. Local option levy---property taxes can be a strain on some, but still may be the best option for Corvallis. Property taxes are also deductible from state and federal income taxes. Our first choice, even though we would pay more. 4. City service fees---also a very regressive form of taxation. Hits lower income people the hardest and is not deductible. One option you did not mention is an employee payroll tax. It is how Eugene and the Portland metro area fund transit. A payroll tax measure went down to defeat in Salem recently, but it is a way to capture money from people who do not currently contribute. While non-profits are generally exempt, hospitals are not...but then Salem Health spent big bucks to defeat the Salem measure. Good Sam could do the same. We wish that our own city could be as honest as Corvallis in approaching the voters and property owners. We will be sharing your newsletter with people here in Salem. Thank you. Claudia Howells and Bradd Swank

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Brewer, Nancy

From: David Miller


To: BudgetGoal

Subject: Budget?

It seems like a very simple problem to solve. As does everybody else in the real world you must learn how to live within your budget. Do what ever you need to do to stay within the budget. Budget increases with the amount and value of property along with the overall health of the business community. I would suggest you start there. Increase the value of property by allowing the development of land. I also suggest you take a look at OSU and find out why with such a large money making machine the city that supports it seems to be unable to run properly under its current budget. You are hired to do a job in a community in which I hope you live. If you don't that would be the voters mistake. We trust you to make decisions about how to run a city but within the budget. If you can't do the job required we have ways of solving that problem also.

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Brewer, Nancy

From: Kathryn Hampton


To: BudgetGoal

Subject: Corvallis Budget Feedback

To the City of Corvallis: Thank you for the pamphlet and request for citizen input on the city budget. I'll be brief with my personal response. I have lived in Corvallis for twenty-seven years, and am 30 years old. I grew up in a low income household where my parents (both disabled) fought very hard to maintain ownership of their home; social services such as SNAP and TANF are not granted to homeowners. My mother fed us with her garden and food boxes provided by churches. I eventually earned a bachelor's degree at OSU, and have all the values and habits of a typical, middle class, left-wing woman thanks to my community, Corvallis. A sales tax would unfairly impact the lowest income citizens in this city. Corvallis already has a higher cost of living than it's surrounding communities, and an immense wealth gap between it's poorest and richest residents. Likewise, an increase in property taxes would put an undue burden on homeowners, and another city service fee would add another straw to the backs of renters already overwhelmed by this city's high housing costs. I will support the renewal of the property tax levy at it's current rate and a modest income tax because I believe this is the fairest option. Corvallis must continue to provide and improve it's present city services and look to the future without punishing working families. Sincerely, Kat Hampton

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Brewer, Nancy

From: Mark Engelking


To: BudgetGoal

Subject: close the gap options

To Whom It May Concern:

After reviewing the options, we believe continuing the local option levy should be the priority method to provide funds to fill the gap.

Secondly a doubling of city service fees to utility bills should be instituted to also aid with the shortfall.

Thanks, Mark Engelking

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Brewer, Nancy

From: Gene And Jerry Hilliard


To: BudgetGoal

Subject: BUDGET GOAL

Just a few thoughts that would surely generate some income without raising taxes: Make English the city's official language and print everything only in English. That should save some money in printing costs. Install cameras (like those I've seen used in Canada) to monitor traffic on well-used streets to photo traffic violators so tickets may be issued. Once installed and paid for, these cameras should enable the city to identify traffic violators and generate income. I see vehicles parked on some streets for days, weeks and sometimes months which should be ticketed and are not, trees that aren't trimmed to meet code, vegetation growing onto sidewalks, etc. Do not make reporting city code violations "complaint based." With cell phones and cars, monitoring can be done everyday--there is no need to wait for complaints, go out and find the violators and fine them if they don't "store" their vehicles off the street and maintain tree heights and vegetation growth by walkways. I think you could generate income if the city had monitoring routes for each working day. Is our city budget in line with other cities of our size? Should we be adjusting salaries downwards? Can we do more with less? When my family needs to conserve, we do so. Is the city conserving to save money now and/or in the future? Can a "hold" be put on raises? Well, are you sorry now that you said you wanted to hear from the public? Budget constraints are always difficult to put in place but I'm glad you're thinking about it. If nothing else, please do not hire any consultants to advise you!! If the current staff can't figure out how to get budgets and services right, we're in BIG trouble! Jerry Hilliard Sent from my iPad

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Brewer, Nancy

From: Kelly


To: BudgetGoal

Good Afternoon, After reading the “So, how did we get here?” portion of the newsletter , received in the mail today. I am wondering how much of the $4 to $13 million dollars is spent on social services? Any? I will read the newsletter more thoroughly and be an informed citizen when the conversations about taxes etc. begin. Thank you, Sally Kelly

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Brewer, Nancy

From: Joan Hurley


To: BudgetGoal

Subject: budget flyer

. Although the flyer (titled Corvallis at a Crossroads") is clearly meant to educate local voters, it arrived in my mailbox--inside the city limits of Corvallis--TODAY. Can't help thinking the money spent on printing and mailing would have had more value if it had reached me prior to election day. Sincerely, Joan Hurley Corvallis resident

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Brewer, Nancy

From: Jeff Bakkom


To: BudgetGoal

Subject: Crossroads?

To Whom It May Concern, Thank you for sending your plan and soliciting feedback. Here is mine: 1. Have you considered taxing OSU? I am concerned that you cited Hewlett-Packards decline here as how we got here. Sure, they were a significant source of revenue. I don't think this community should be dependent on it. Most local HP employees I know don't even live in Corvallis. 2. OSU is and always has been bigger than HP. OSU has thousands of students living in our community most of the year, every year. That is not going to change. Are you getting enough property taxes from their landlords? 3. I pay over $4000 per year in property taxes on my modest Corvallis home. Why do you only get $205 on average? How much of my bill goes to Corvallis? Maybe you should look at the portion of Benton county tax payers bill that goes to Corvallis, when they live in Corvallis. Best Regards, Jeff Bakkom

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Brewer, Nancy

From: Peter Ball


To: BudgetGoal

Subject: Budget feedback

I am responding to your budget challenges. I think it is totally irresponsible to spend tax money on items such as global warming, the Majestic Theater, sustainability staff and other touchy feely stuff when you say you can't deliver quality services. Some options could include better management by contacting out many services to reduce our future pension obligations as well as reducing the amount of publicly owned property and get it back on the tax rolls. I think we have an elitist attitude in Corvallis that makes it challenging to consider simple and cost‐effective solutions. We can leverage a lot of business practices to change how government runs. Thanks for the opportunity to provide input. Sincerely, Peter Ball

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Brewer, Nancy

From: LaurieKC

Sent: Friday, November 18, 2016 6:16 AM

To: BudgetGoal

Subject: feedback

Hi After reading the 3 options I prefer option #3 with a local general sales tax. This would tax visitors as well as people based on usage and is fair as it distributes among all purchasers. I have lived in other sales tax states with a minimum wage income and survived. If exceptions were made it would be Milk, diapers, prescription meds (not over the counter), feminine supplies. Please NOT an income tax and keep service fees where they are. Another idea would be to sell off the senior Center and coordinate/disperse those services into the library and Osborn meeting rooms. The Sale of the center could add to housing expansion and a taxable base. Lastly see if the taxation of Samaritan buildings (admin Walnut, Avery) and OSU athletic facilities (non‐educational) could be done. Lastly reduce the salaries of department heads and directors as that would show good faith to the citizens who feel the pinch here in this higher cost city. Kind regards Laurie

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Brewer, Nancy

From: Kirsten-Mike Jordan


To: BudgetGoal

Subject: close the gap

Please, no local income tax. State and US taxes are a big enough headache.

General sales tax could bring in revenue from visitors using local services as well as residents.

How about a combination of sales tax, option levy and city service fee?

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Brewer, Nancy

From: Rich Mullen


To: BudgetGoal

Cc: Biff Traber

Subject: 'Enhancing Community Livability' circular

Dear budgetgoal, An easy and effective way to make a dent towards the good care of Corvallis' financial future: ‐‐> Dismiss the persons/committee who put together and put out this circular and who thought it was a good, useful idea. <‐‐ It is: expensive to produce, overblown, pretentious, condescending, and I could go on. Not a single good adjective in that string ‐ nothing good about the circular that I could think of. In the end, after reading it 3 times, I'm not actually sure what the circular is about or what action it is meant to produce. Well, it did produce this email... It states "Three possible futures are ahead for the community". This statement shows a lack of faith in the intelligence of the people receiving this circular. Omniscient statements are intentionally misleading fallacies, and show when the writer of a piece is trying to deceptively get their point across with a weak, or with no, argument. Unethical. And, I can think of a lot more than three possible futures for Corvallis... No one signed their name to the circular. It's easy to see why. This is what you do: Lead, follow, or get out of the way. Oregon needs a state sales tax. Oregon provides an infrastructure for every business and person who is involved in a sale. This infrastructure costs Oregon something on the basis of the number of sales, and the state should get a repayment of it, on the basis of the number of sales. A sales tax is also of secondary use to lower unnecessary consumption. Don't hide something like this in political mumble‐speak. Do NOT tax

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internet sales until/unless there becomes a majority of people in the nation who can trust that it's valuable for all. It would be like sticking a knife into anything you try to do towards a sales tax. If a sales tax is enacted, we would have to create multiple, continuous, enticements to help consumers buy more locally, because of the probable consumer fleeing to internet retailers. Enhancing civic pride works, creating fun local events works, community sponsored advertising of local businesses works. I can think of more than three of these types of enticements also. Whatever happened to DaVinci days? What an opportunity wasted there. And no, we don't trust our city government, as the circular deceptively says that we do. We should be able to, though history has taught us we can't. Mostly because they don't seem to have a clue as to where money comes from (except for grants) and can't seem to exist well without large industries like HP when HP was doing well here. So, we tend to make our college and hospital big industries. Both a big mistake. Trying to reap infrastructure rewards from putting students into incredibly deep debt, and Samaritan trolling for sick people for their insurance benefits. Not a pleasant direction that we are taking here. An alternative for the state (not local!!) sales tax is for Corvallis to entice large industry. I would suggest both. Sincerely, ‐Rich Mullen

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Brewer, Nancy

From: Josh Wheeler


To: BudgetGoal

Subject: Budget Comments

As a resident of Corvallis since 2014, and a homeowner in Corvallis since July 1, 2016, I have substantial concerns about the City Budget. I am concerned that there is little action in Corvallis when it comes to issues. Having a committee on homelessness the past 10 years and the problems have increased. Having a committee on a sustainable budget for 18 months and all you have is a brochure with three options. Basically, your options are reduce service, keep service as it is with renewal of local option levy, and increase service by more tax. How did that take 18 months? It is uninventive and uninspired. My definition of a sustainable budget is one that balances and plans for increases of cost in the future so that it can continue to balance. After viewing the materials online, I offer the following : Human resources - 9+ FTE compared to Benton County which has 6 City Council - 9 people, 2 year term, 8 committees compared to Bend which is twice your size : 7 council, 4 year term, 3 committees Number of Corvallis employees = 750+ compared to Bend near 600 Look at all the Temps that Corvallis hires compared to other places. This is the definition of big government being wasteful. You have too many employees in the wrong departments. Fire, parks, and others lost employees which reduced service. You cut in the wrong areas. The complexity of the Corvallis Development Code makes it so that you need lots of employees to interpret the code and implement it. Turning the code simple would reduce the amount of staff needed which could then focus that staff time to services the community actually needs. The things in that code are not what the community needs. Common sense solutions and less regulation are what is needed. It is unacceptable to reduce the effectiveness of our fire department. Life and safety should be #1 priorities. A question being reviewed should be : Why are calls for service going up? Do we charge for these calls? Are we educating the public to help themselves rather than need to have them call. Ambulance collections are a major issue. You have to minimize the gap of billing vs. collection. Either hire a collections agency or find in house staff to seek payment. The place I used to work, North Chicago, Illinois, did ambulance billings and collections right and were able to retrieve more of the money. Parks : I am a user of the parks and cannot believe the service level. I made calls this year for profane graffiti at the skate park, broken benches at the tennis courts on Cleveland, replacement of tennis court nets, replacement of volleyball nets at Chinitimini, weed pulling at Riverbend in a

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children's playground. Rarely is Riverbend ever weed trimmed with growth around all water fountains, benches, trash receptables, etc and plantings are full of weeds. Instead, our parks staff are cleaning up homeless camps left and right. Homeless : Either house them or get them out of here or work with the County to get mental illness treated. 10 years of a committee have done nothing. I volunteered on United Way and saw nothing being done but a bunch of frustrating conversations with no action. All the funding goes to prevention and does nothing for intervention which would reduce the need for prevention. Spending on prevention only encourages homeless to remain. You are not treating the actual issue. This affects Parks and Police. Speaking of police - why not require OSU to create their own Police service? Or how much do they pay Corvallis to police for them? With the amount of calls on campus, it prevents Corvallis police from serving citizens of Corvallis. Notice the increases in mental health response. Again, you are spending money on the wrong thing. You need to reduce mental health, not encourage it which you are by funding prevention. You should add traffic cameras. They increase safety and bring in revenue to pay for itself. Additional overarching taxes are unacceptable. Targeted taxes are much more palatable. Provide a tax on bicycle purchases to fund maintenance of bike paths and lanes. Add a local gas tax for infrastructure. Some more random ideas to cut budgets : - Cut the neighborwoods program. - Privatize Osborn, let it run itself - someone buys it and runs it as a For Profit - Privatize the Majestic, although it doesn't sound like you have to put much money here. The Whiteside is thriving on its own, why can't the Majestic? The famed free Corvallis transit system is nice, but is this really sustainable to offer this service as free? The budget needs to be looked at and determine what is needed vs. what is wanted. We too often fund what we want. We are not funding what we need. I hope I have outlined that in this response. Josh Wheeler 3615 SE Midvale

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Brewer, Nancy

From: Jay Gile

Sent: Friday, November 18, 2016 12:46 PM

To: BudgetGoal

Subject: Budget Options

I vote for scenario #1! The City of Corvallis needs to learn to live with the money they have! My wife and I are retired as are many others in Corvallis. While we could absorb any of the suggested options, I am sure that there are many who could not. None of the suggestions for raising money will attract new people or business to Corvallis. City government has an obligation to provide for public safety, drinkable water and safe waste disposal and a reasonable road system everything beyond those services is nice but not absolutely necessary. In addition the city has an unfunded liability from PEERS. We will never support any sort local tax, fees or levies until we see evidence that the city is being financially responsible. -- Jay Gile

43

Brewer, Nancy

From: Doug DiCarolis


To: BudgetGoal

Subject: Budget

I am a long time Corvallis resident(31 years),and business owner.I strongly oppose a sales tax.It is a tax on the poor,and it suddenly makes hundreds of local citizens tax collectors.A property tax levy,or city service fee is the best option to collect this money.I am a Corvallis home owner, and would have no problem paying slightly more,or the same as I have been paying in property taxes. Sincerely, Doug DiCarolis, Owner of Happy Trails Records

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Brewer, Nancy

From: Garnett2620


To: BudgetGoal

Subject: feedback

In response to the city's request for feedback on options to cost the gap on budget concerns, I find the idea of a sale tax the most reasonable option. Not only does this require all locals to support the city but people coming here from other places, who utilize services as well, to support the city.

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Brewer, Nancy

From: kjsrl


To: BudgetGoal

Subject: Crossroads

Thank you for mailing out the Crossroads information. it does make one pause and consider the steps needed to create our city. The downsizing of HP was noted as contributing to the current challenge of delivering services. As HP was/is downsizing, OSU and Samaritan Services have steadily increased. How are these two organizations contributing to the City's budget? How are their property taxes assessed ? Thank you, Karen Rasmussen Lee Sent from my Verizon Wireless 4G LTE smartphone

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Brewer, Nancy

From: John Navone

Sent: Saturday, November 19, 2016 7:21 AM

To: BudgetGoal

Subject: Corvallis at a crossroads

Ok, I've lived here for sometime, but am new to the community as a homeowner. With that said. Part of what has drawn me to buy h ER email in Corvallis is no sales or local income taxs.

I would fully back renewing the levy I/we already have been budgeting for. Talking about any new budgetary needs as they may present.

Thanks John Navone Hemlock Ave, Corvallis

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Brewer, Nancy

From: Holzworth, Carla


To: Rollens, Patrick; Brewer, Nancy

Subject: FW: Public Input Submission

Wasn't sure if this should go to both of you??? ‐‐‐‐‐Original Message‐‐‐‐‐ From: City Manager Sent: Friday, November 18, 2016 9:15 PM To: Holzworth, Carla <[email protected]> Subject: Public Input Submission Submission information ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Submitter DB ID : 1035 Submitter's language : Default language IP address : 50.188.130.74 Time to take the survey : 26 min. , 20 sec. Submission recorded on : 11/18/2016 9:14:36 PM Survey answers ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Please enter your full name. (This information is required to ensure the City keeps accurate records of community input.) Constance L Francis Please enter your home address, including city. [Ex: "501 SW Madison Ave., Corvallis"] (This information is required to ensure the City keeps accurate records of community input.) 1326 NW 12th St, Corvallis, OR

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In a few words, please describe the agenda item or topic you'd like to comment on. (Ex: "Central Park maintenance" or "New housing development on Walnut") Budget Goal Input Please choose a meeting date from the menu below. (Feel free to review the city's online calendar .) 11/18/2016 Use the space below to share your thoughts and feedback. These remarks will be shared with the full City Council and will be entered into the public record for the selected meeting. Hello, I have read the budget information sent to me as a Corvallis resident. Nationwide our income and property taxes are very much on the high side. Our schools slightly lower than the cost comparatively. I think we have wonderful services in Corvallis and I appreciate that very much. But I am on a fixed income and my property taxes raised Dramatically this year. We all have to tighten our belts. The city too. Of course you are finding efficiencies, but services have to be cut. I am willing to participate in city volunteer efforts at the library and in the parks. I disagree with a local income tax (even though it would not effect me) because our State income tax is already very high. Definitely not a sales tax. I would hesitantly agree to continuing the levy even though my property taxes increased dramatically. Definitely not another City Service Fee. This city is very expensive already. I have been here over 40 years, but it is too expensive. That is mostly gut feel. I really think huge efforts need to be made on the part of the city before raising taxes. Please go after PERS reform and cut wherever you can. Connie Francis

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If you like to be contacted by the Mayor and City Council with any follow‐up questions, please enter an email address or phone number below. Disclaimer: This e‐mail message is a public record of the City of Corvallis. The contents may be subject to public disclosure under Oregon Public Records Law and subject to the State of Oregon Records Retention Schedules. (OAR:166.200.0200‐405)

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Brewer, Nancy

From: Karrie Wuerch


To: BudgetGoal

Subject: Sustainable Budget Feedback

To Whom It May Concern: The cost of living in Corvallis is among the highest in the state. Cost of housing and taxes are a persistent concern expressed by professionals being recruited to the area. An additional income tax or sales tax for those living in Corvallis will only decrease our ability to attract professionals and young families. I would appreciate a realistic analysis of the specific services to be reduced or eliminated before endorsing further financial burden on the residents of Corvallis. For example, recycling pick‐up every other week rather than every week. Evaluate the necessity of the transit system. To suggest "major service reductions and services" without specifics would be irresponsible. Thank you for the opportunity to provide feedback. Karrie Wuerch Sent from my iPad

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Brewer, Nancy

From: Roger Aho


To: BudgetGoal

Subject: Re: Corvallis Future Funding

I also highly recommended a City Council directed independent budgetary audit. The problem that may occur with this, is who will bring in the independent auditor. This should already be done on a bi‐annual basis. ‐R > On Nov 16, 2016, at 7:01 PM, Roger Aho <[email protected]> wrote: > > Trim the fat by: > > Reduction of force: City non‐essential positions. Do more or the same with less. > > Cut non‐essential programs. > > And many more areas of potential waste and/or abuse of budgetary spending. > > Do not ask for more money from hard working tax payers. > > Let's get it together City Council. > > ‐R

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Brewer, Nancy

From: Ken Himes


To: BudgetGoal

Subject: Thoughts about "Corvallis at a Crossroads"

Good morning, Please permit me to share my story: I arrived in Corvallis as a freshman at OSU in 1965. I met my future wife here, a local girl, and married her in 1968. We moved away for my graduate school and returned in early 1977, along with our two preschool aged daughters. Our girls attended Hoover, Cheldelin, and CVHS. Our youngest graduated from OSU. My wife worked as a librarian for 26 years, at Mt. View, Garfield, CV, and the CIMC. I served as an associate pastor for 17 years and then founded a non‐profit ministry for 22 years. We live in a 1600 foot home in Timberhill. Both my wife and I have recently retired. We've been blessed in many ways, and I have no regrets about our career choices. Our retirement has meant a 60% reduction in our income. We live on Social Security, a small PERS pension from my wife's years with the school district, and the small savings we've managed to accumulate over 40 years. In the words of "Corvallis at a Crossroads," we find ourselves living somewhere between "Scenario #1" and "Scenario #2." We simply can't afford to pay for "Scenario #3." We are more than happy with city services as they are, and would easily accept fewer, especially the fees attached to our utility bill. In our view, city services should prioritize fundamentals, such as fire and police, and forego niceties such as fareless bus service. In our home, we're having to make such difficult choices. The city should learn to do the same. We're open to further conversation. Feel free to contact us. Ken Himes

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Brewer, Nancy

From: Bonnie Avery


To: BudgetGoal

Subject: Closing the gap

Thank you for the opportunity the comment on revenue options. In the past I have actively supported the optional levies for services and would continue to vote for such levies if needed. Levies seems like an expensive way to run government as opposed to a local income or general sales tax, but those are perhaps more regressive. The first thing I tell people about Corvallis is how proud I am of our free (to all users) transit system paid for by fees. I do not mind paying taxes in general and local taxes/fees in particular because it is clear that the community benefits from these services ‐‐ I am okay with not always benefiting by every service ‐‐ because I know I will benefit from many. I have lived in Corvallis for many years, I am retired, live on a fixed but sufficient income among other things, I use the Aquatic center five days a week, the transit system occasionally ‐‐ one morning not long ago, I complained to one of the city workers at the aquatic center that the pedestrian light near by was vandalized and not working a few hours later, I saw a repairman installing a new one and returned home to a phone message from the city telling me the work was completed...how great is that! I am not in favor of cutting services when I can contribute to maintaining them. Best regards, Bonnie Avery Sent from my iPad

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Brewer, Nancy

From: Ron Prevost


To: BudgetGoal

Subject: Recent Newsletter -- Crossroads

Dear team, Thanks for the newsletter that helped explain the situation. It was well done and a good proactive approach. It appeared a bit overwhelming at first because of the two languages. It look much longer and complicated than ti really was. Several year ago, I attended a local district communication session with Mayor Julie Manning and our District 1 council man at the time. They talked about these issues way back then. I am glad it is getting more clarity and attention now. I would like to see us get to a sustainable budget and keep the city working well and looking good. I am willing to pay my share. I have been a resident since 1983. When I look at the options, I could support either the local option levy OR the city service fee. Both are direct and easy to understand. However I would oppose a local income tax or a general sales tax (I guess I am a true Oregonian now). They both seem complex and add difficulty to citizen personal matters. I would really stay away from the sales tax! There is one thing that would cause me to be reluctant to support any of the increases — that is unnecessary spending. One item is areal concern to me. It seems that their are some folks who want to use the city budget for their own “environmental sustainability causes”. They want to use local funding to make political statements at a local level that belong at the national level. The Sierra Club and others may have some good points, but let them spend their own money. If I see that there is any significant local funds being used for this kind of thing. I will turn very cautious in giving more funds. Please stay focused on the basics and providing services and caring for the city property. That is what I can support with a direct approach like the levy or service fees.

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Thanks for reaching out. Ron Prevost

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Brewer, Nancy

From: Jan Napack

Sent: Saturday, November 19, 2016 3:22 PM

To: BudgetGoal

Subject: Feedback re Sustainable Budget

Dear Corvallis City Staff,

Thanks for asking for my ideas on how to approach

the "Crossroads".

I 'm sure you appreciate that many folks who (permanently) live in

Corvallis are fairly well off and willing to contribute toward the

common good. But, there are limitations and that's where I think

we need to create a better policy on just how much anything

should/could increase from year to year, especially "Fees".

I suggest we start with the COLA as a benchmark and go from

there. Anything over that (outside of capitol expenditures) needs

public approval...as in voting...not by raising fees via council fiat.

But to be honest, we don't use many of the services we pay for.

We no longer go to the public library, or stroll down Riverfront

Park, or visit the Central Park roses, and we've quit going to the

Post Office. Why? Because of the chronically homeless, the

aggressive pan-handlers, the drunks, and the "travelers" that hang

out in these places.

Right now, living in a 1600 sq ft, 3-BR, 2-Bath, 10 year old home

we pay ~ $100 per week for the privilege of living in Corvallis.

That's just real-estate taxes and city fees. Do we get our money's

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worth? Indirectly. We live close enough to Philomath to enjoy their

Parks, Library and Post Office services instead of Corvallis'. We'll

gladly agree to higher taxes and fees if we can have our downtown

back.

Jan Napack

Because of the

-- Jan

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Brewer, Nancy

From:


To: BudgetGoal

Subject: Corvallis at a Crossroads - Feedback

City of Corvallis, In response to your recent request for feedback regarding budget options being considered by City government: Local income tax is not likely to be approved by Corvallis voters and the same for a general sales tax. Voters just approved a 2% tax on marijuana sales. How much funding will that provide? In a university town this might just balance the budget, and then some. The Local Option Levy will be in effect until 2019. It is a rather large commitment by the community to fund designated services. Property tax increases are difficult for people on fixed or limited incomes. That should be remembered if any proposals are made increasing this burden on property owners. I would appreciate having City Service Fees go away. I would rather have all my City taxes on my property tax bill that can be deducted from my income tax. When I add up all the taxes and fees that City is already collecting it is already a large amount. My memory of writing the check for this years property tax is still vivid. The recent increase in the Transportation fee is more than irritating. When the Transportation fee was first proposed it was to fix Walnut Boulevard ‐‐ and that was it. It should go away and street maintenance should return to being a line item in the budget. Corvallis is a small university town. The one large employer (H‐P) has left town. Much like having a rich Uncle not willing to support you anymore. It has been difficult for the City coffers to adjust to the new reality. Things certainly cannot stay the same. The City has been adjusting but there are even more reality checks needed. We have an unused vacant fire station that the community spent millions on. How can that be 'recycled' for another community use? If CPD needs more revenue then citing drivers for speeding in school

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zones should easily fill that gap. OSU and Good Samaritan can do even more to fund CPD and Fire. More preventive maintenance can be done vs. reconstruction. Especially on streets. Maintenance should not become an Engineering project. If maintaining existing streets is as large of an issue as is presented ‐should construction of new streets continue? Perhaps a moratorium on any new street construction is prudent? The gap list of work provided to Council is really a wish list. There needs to be a reality list created. That is what most of us do at home. Prioritize. Some things are just not possible to take care of. Cadillac solutions need to be scrutinized. The community, minus the rich Uncle, can afford the Prius (creative) solution. Thank you, Alice Grucza

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Brewer, Nancy

From: William Elliot

Sent: Sunday, November 20, 2016 2:31 PM

To: BudgetGoal

Subject: Gi'me More Money

A local income tax or a local sales tax are outrageous proposals. A local sales tax would drive Corvallis shoppers away. Thus you are stuck with more property tax or more city (service fee) tax. The slick, shinny flier you sent was so badly done, one realizes that giving you more money is a waste. If you're serious about wanting to hear from us, then call me 541 207.2648 (541 738.0377 message) to know why your flier is so unreadable.

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Brewer, Nancy

From: Kimberly Powell


To: BudgetGoal

Subject: Corvallis Crossroad

To Whom, I am not clear from you letter what services will actually be reduced if the levy is not renewed. I personally earn 35K less this year than I did in 2015 and 1/2 of what I earned 4 years ago. I am not interested in a property tax increase. Adding a sales taxes opens a window that I don't think should be opened. KPowell Corvallis home owner

65

Brewer, Nancy

From: Ron Marek


To: BudgetGoal

Subject: Sustainability budget

It is better to cut certain programs. Adding the landlord inspection program last year was unnecessary. State standards are very tough and tenants self help is the strongest weapon to bring property into compliance. I am concerned that adding that program is an example of what may be happening generally in the city's management of the community. Ron Marek Attorney at Law

4100 NW Boxwood Sent from my iPhone

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Brewer, Nancy

From: Ruth McNeill

Sent: Monday, November 21, 2016 6:27 AM

To: BudgetGoal

Subject: feedback

I am definitely against Scenario #1 in which services are cut or eliminated, and definitely in favor of Scenario #3 which creates a sustainable budget. I'm willing to pay for it. I would be OK with a local income tax, as long as the form was simple: a certain percentage of your federal or state income tax. A progressive tax that doesn't affect people with low incomes too much is a good thing. I am against a sales tax for two reasons. First, it affects people low-income people who are already having trouble affording things, and second, it would be costly for local businesses to implement. I'm also fine with increasing the property tax, as long as we're talking about an increase of 10% not 50%. I am probably of a minority opinion here, but again, it is a progressive tax that is gentle on renters. Oops, unless the landlords would raise the rent, which they probably would. I guess I'm against imcreasing the property tax after all. The city service fee has the same problem as the property tax—landlords raising the rent. Summary: the local income tax is my preferred option. I am rich enough that it would affect me, but overall, it's fair, or at least would be fair if the federal income tax, which started out fair, was not riddled with loopholes for the rich. Still, I think it is the best single choice available. Are you considering a mix of new income streams? If so, I could stand tiny increases in property tax and service fees.

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Brewer, Nancy

From: Pete Sandrock


To: BudgetGoal

Subject: Kudos on Crossroads newsletter

Your November newsletter was extremely well‐written. Clear, concise, credible, and informative. Well done. Pete Sandrock

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Brewer, Nancy

From: JohnM


To: BudgetGoal

Subject: feedback re options to close the gap

Having read the newsletter "Corvallis at Crossroads", the following is my feedback:

1. The options given lack sufficient detail for me to have a preference.

2. All options should adhere to certain principles:

They most be progressive, not regressive, in their structure. The lower one's income, the less they pay. The revenue source should include non-residents who use city infrastructure/services. Example, all the non-residents who visit Corvallis for OSU games.

The revenue sources should include OSU, the Samaritan Health complex, and other non-profit landowners including churches.

3. Corvallis is an expensive city in which to live. We do appreciate the "qualities of life" that the City government helps to provide, but there is a financial limit. The city leaders must realize that we expect budgeting within reasonable limits and if that means cutting back on certain services, so be it.

4. We are tired of the Senior Center. library, and Osborn being held hostage to pass a levy or otherwise raise revenue.

Thanks,

John McEvoy Corvallis

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Brewer, Nancy

From: Louise Parsons


To: BudgetGoal

Subject: Corvallis Feedback

In years past developers and city planners told us that growth would lower taxes. Wrong: growth brings more demands for services and more expensive living. I am not a "no‐growther". Growth has brought more diversity, opportunity, and cultural enrichment in numerous ways. We just need to be honest about its costs. My strongest opposition is to a city income tax, even though we have a modest income. Creating yet another mechanism for tax collection would bring additional overheard ‐‐and hassle ‐‐for both government and residents. Same goes for a sales tax. It is a sneaky and inefficient "nickel and dime ya" method. With sales taxes, folks, unless they keep extensive records, quickly become ~ignorant of how much they are paying. Corvallis already has a fair reputation for being a costly town. A sales tax would only promote more out‐of‐town shopping. Honest city taxes are itemized in our property tax statement. I am not greedy and have no problem with this. While we senior citizens don't literally have fixed incomes, they are often quite limited. Yet I have consistently supported both school and governmental tax levies, for the reasons of honesty and efficiency mentioned above. Over the years I have done my share of "pounding the pavement" in support of levies. Thank you for the opportunity to give some feedback. All the best, Louise Parsons

70

Brewer, Nancy

From: Michael Harvey

Sent: Monday, November 21, 2016 12:35 PM

To: BudgetGoal; Glassmire, Bill

Cc: Michael Harvey

Subject: Increased Street Fees

The city just in the Iast few weeks sent out a very helpful and informative mailing about revenues and budget needs. It was really well done. I was surprised to see in this morning's paper that without any further discussion or listening sessions with citizens the City Council is already prepared to increase sevenfold the street maintenance fees included in utility bills. Where is the public discussion about community priorities (e.g. free bus service vs street repairs) and preferred revenue options (e.g. service fees vs sales tax) outlined in the recent mailing? To jump in so soon with increased fees on residents without any further sensing undermines trust and expectations of public discussion and collaboration created by the mailing. Sounds like the City already knows what they want to do and how they want to do it. Thanks for listening. Mike Harvey 426 NW 34th Street Corvallis Sent from my iPad

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Brewer, Nancy

From: petersandluskey@


To: BudgetGoal

Subject: Feedback on "Corvallis at a Crossroads" mailing

My husband and I appreciated receiving this “Crossroads” mailing. You asked for feedback. As you know, currently, property owners are paying three different local option levies, for *all* areas, the city, the schools, and the county, on top of our regular hefty taxes for all these entities. In addition, each year we are paying on the bonds for the very beautiful new middle school and new high school we built several years ago. I have no doubt that once these bonds are paid off (probably around 2020), that we will be asked to fund new bonds for whatever new “brick and mortar” is deemed necessary. It never stops. Our taxes usually go up about 3% in step with the top annual rate on assessed value. I noticed this year that actual property taxes went up by somewhat less than 3% because one of the bond charges declined. That was good. But all three local option levies went up 3%. Please note that we personally voted *in favor* of all of these levies and bonds even though Oregon property taxes are known to be well above average in the U.S. We are very supportive of our city. But, enough is enough. We live in a thriving college town. We have a decent amount of healthy small business and some major employers like OSU, Samaritan Health Services, and to a lesser extent Hewlett‐Packard and CH2MHill. We have some of the highest residential property values in the state. We’re better off by far than most cities. We’re very blessed. So whatever our means are, we need to live within them. As demographics increase the percentage of retirees in our city, we have more and more citizens on Social Security and fixed incomes. Savings interest rates are laughable. The COLA increase in Social Security for 2016 was zero percent. For 2017, it’s a few tenths of one percent. Much of your citizen tax base is experiencing what the city is experiencing, only much worse. As property taxes for most property tax components go up 3%, retiree income increases sit around 0.3%. A 10:1 comparison. And, you all are certainly experiencing the rest: annual medical premium increases of 10 to 20%, food increases of 3 to 4%, the list goes on. It's time for the city to face the same reality as its individual citizens. Do *not* try to sell Scenario #3 to Corvallis citizens. Do *not* market the sell by holding hostage all the services that people like (library, senior center, etc). Do what your fellow citizens are already having to do, cut back. This would be your Scenario #2. You probably don’t have to eliminate much; but you do have to cut back. The most you should be asking for is a continuation of the city local option levy at the current rate (this revenue will increase 3%/year as assessments increase). Live within this 3%. This is looking generous to those of us on Social Security. Here are a couple of specific suggestions. I’m sure others have many more. Reinstate some revenue generation for city bus riders. It’s great to have free bus service, but not when the city can’t afford it. If we have a shortfall between revenue and expenses, then we don’t have funds for this. The consumers of this service need to shoulder a major portion of the expense. Also, don’t spend city money on maintaining the trees along the sidewalks. Leave that to the individual property owners. We would rather trim our own trees which we bought in the first place. If you want revenue, then fine the owners who won’t follow through on pruning after a couple of notices from the city. Thank you for all you do. I know these are challenging times. Do the right thing. Campaign for living within our means.

Sincerely, Tina Luskey

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Brewer, Nancy

From: Warnock, Jennifer

Sent: Tuesday, November 22, 2016 6:50 AM

To: BudgetGoal

Subject: budget ideas

Dear Council,

I have some ideas about funding. My property taxes continue to rise and I soon will not be able to afford my house as a

single woman.

1) Decrease civic funding for the aquatic center. People who actually use the pool must pay a membership fee or per use

fee to support it. I think it is irresponsible to fund funtime when we are talking about maintaining critical government

functions.

2) Why do we need an urban forester?

3) Pot tax

4) Beer/spirits tax

5) Renter's tax

We have such a depressed local economy- increasing income and property taxes is not the way to go.

I f we don't have money to run the budget now, why are we funding low income housing, which will also not provide

revenue?

Can we also make some regulations regarding bicycle safety? There are too many riders out there in the dark with no

light, helmets, reflectors, wearing dark clothes in the rain on unlighted streets. All bikes would need to pay a fee and

have their bikes licensed.

Thanks!

Jen Warnock

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Brewer, Nancy

From: Barbara Downing


To: BudgetGoal

Subject: support

I would support a general sales tax which would exclude food.

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Brewer, Nancy

From: Jesse Dill


To: BudgetGoal

Subject: Closing the Corvallis financial gap

Hi - Received the flier about the upcoming budget gap for our city. The flier outlined the problem well enough, but I think was severely limited in the creativity and number of solutions it provided. There are ideas to fund improvement to our community and city that would be better for all, in my opinion, than new fees and taxes. Some ideas - 1) Sell and privatize the airport, saving the city the cost of operations. 2) Offer new incentives and figure out how we can attract new businesses to Corvallis. I live near Research Way and there are still many empty lots that could be filled with offices of corporations if they were incentivized to operate here, and the city could generate additional significant property taxes. Then the burden isn't only on home owners or the general population. 3) Assess additional taxes or fees targeted to the student population and OSU. Currently the university is making amazing amounts of money off the students, while not, in my opinion, paying its fair share for the roads and infrastructure that the football games, students, and other activities cost. We can ask OSU to step up even more - the better our community/roads/etc the more attractive a town this is for students and the more revenue the university generates. 4) Are there alternatives to PERS we can use legally? This is a broken system through out the US and finding an alternative now will serve the city well in the future. 5) Organically raise funds for specific city services or projects via cloud funding or other fund raising methods. If we better raise awareness and market solutions to the community, I think many people will be willing to donate to ensure that Corvallis is continuously improving and remains an outstanding place to live. As a concerned resident, I would like to see more detailed information on what exactly we currently pay for. The current flier made it clear we spend the bulk of city funds on police - is this needed, or can we become more automated and efficient now before the funding crisis in some of these areas? I think while it is not popular to discuss, we also need to face the fact that it may be possible to maintain service levels while reducing city employment by better utilizing resources and investing in automation for things such as parking enforcement. http://www.govtech.com/public-safety/License-Plate-Scanning-Goes-Mobile.html We need to become a modern city and utilize the amazing technology of today to increase service and make better use of limited resources. These are just some quick brainstorming ideas that may or may not have any real merit given my limited exposure to our city government. But hopefully they illustrate the point that there are many other possible alternatives for solving this problem. I also think a key thing for the Task Force to consider is not just meeting the funding need, but how to aim higher with a greater vision, to have a surplus and a city wide "rainy day fund" that can ensure Corvallis is consistently one of the best towns to live in in Oregon, and in the US.

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In many ways it already is but I think with some added vision and elbow grease and a little ingenuity we can stop thinking about yesteryear and how great it was when HP was pouring money in and instead look to future possibilities and continuous improvement of our community. I currently plan to raise my kids (now ages 1 and 4) here so this is quite important to me as it pertains to their future. Sincerely, Concerned Corvallis resident, 2 time graduate of Oregon State, and MBA, Jesse W. Dill

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Brewer, Nancy

From: Michael Harvey

Sent: Tuesday, November 22, 2016 9:52 PM

To: BudgetGoal

Subject: Street Maintenance Financing and Costs

Hi. I looked at the budget task force tab on the city website. Is there any background information, such as a Presentation Document, for street maintenance financing and costs, as there are for many other areas of the city budget? I looked at Public Works, Utilities and Transit System presentation docs, but found nothing for street maintenance. Perhaps I missed it? With a proposal for a 700% increased assessment for street maintenance, I would like to see some background information that might help me better understand the situation and the need for such a large increase. A 700% increase, even spread over 2‐3 years, is a significant "bump". Also, could there be other sources, such as a local gas or sales tax, that might help meet the need? More background on this proposal would be helpful. Thanks for your help. Mike Harvey 426 NW 34th Street Corvallis Sent from my iPad

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Brewer, Nancy

From: sbwillmart

Sent: Wednesday, November 23, 2016 7:06 AM

To: BudgetGoal

Subject: Budget

Hi, my name is Brad Martin and as a homeowner in Corvallis I believe property taxes are high. Therefore, a sustainable City revenue scenario for me would include a balance between renters and property owners. That balance could be generated through a local income tax or general sales tax. Regards, Brad Martin Sent from my iPad

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Brewer, Nancy

From: Glencora Borradaile


To: BudgetGoal

Subject: yes to local income tax, but reduce police funding

I am shocked at the huge fraction of expenditures that is spent on police in this town, particularly given the new political environment we live in and the frivolous expenditures of the CPD on software to monitor our social media: https://www.brennancenter.org/analysis/map‐social‐media‐monitoring‐police‐departments‐cities‐and‐counties I would support a local income tax, but only with the assurance that funding to the CPD be reexamined. Glencora Borradaile.

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Brewer, Nancy

From: Lucia

Sent: Thursday, November 24, 2016 11:00 AM

To: BudgetGoal

Subject: hi

I applaud your replacement of sidewalks that were in such bad shape on 31st St.; HOWEVER, I never seem to see any grinding down of the marked raised walks – at least for several years. Eventually, the markings for grinding them wear away and nothing is done, a real hazard to those of us who walk in the morning in the dark!…. Lucia Durand, 1035 NW 31st.

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Brewer, Nancy

From: paul harding


To: BudgetGoal

Subject: Crossroads

Below are some ideas for your consideration. I suggest to instead of trying to come up with new income sources, look at ways where expenses can be slashed to effect the savings desired. Why does government have to grow? Let's try to shrink it! Taxes are way to high already. 1. Eliminate a fair amount of administration personnel I am sure we can operate the city on less staff. 2. Place moratorium on the purchase of new vehicles. Most vehicles will now run well over 200,000 miles before major repairs. 3.Use private resources (contractors) where possible. No need for all the city staff and their associated payroll expenses. An example: Recently, our water meter was changed out by a city employee. While doing the work he accidentally ruptured the mainline on our side of the meter. He was required to call a licensed plumber from out of town to make a 10 minute repair because he was not allowed to make the repair himself. Our service was out for over 4 hours and the plumber had to come all the way from Salem. The city employee had to wait most of the entire time being unproductive. 4. Concentrate on providing only the three major responsibilities of government, Infrastructure, Public Safety and Education. 5 Reduce each departments budget by 5 cents for each dollar spent. 6. The city has miles of bike lanes. Bicycle riders must share the expense of maintaining these lanes. A bicycle fee needs to be assessed.

81

Brewer, Nancy

From: bill.stoney


To: BudgetGoal

Subject: Corvallis Budget - Stop the waste

I just received your Corvallis at a Crossroads glossy flier print half in Spanish. You are asking for feedback as to how to close the budget gap, including a local income tax, general sales tax, local options levy and a city service fee. No where in this flier do you mention cutting cost. It continues to be spend, spend, spend with no accountability. This flier is a classic example, did you really need to send out a glossy flier to discuss this issue, did you need to double the number of pages by printing it in Spanish. Clean up the waste before asking additional funding. Manage for the need to have, not the nice to have.

82

Brewer, Nancy

From: Tyler Harran


To: BudgetGoal

Subject: "Corvallis at a Crossroads" Feedback

Dear City of Corvallis, I am writing in response to your flier that I received in the mail, "Corvallis at a Crossroads - A conversation about the community's future". In the article, you outlines 3 scenarios, each with different impacts and effects on the City of Corvallis. I am writing simply to advocate my support for "Scenario #3, Sustainable Budget: Long-term Sustainability". Without getting too much into the nitty-gritty of budget allocations, I just want to share my impression of what Corvallis is, and why I love this town. My wife and I moved here from Laramie, Wyoming just under two-years ago so that I could work in Crop Science at OSU. The very first time I came here, I knew that it would one day be home. Specifically, I noticed the abundance of City Parks, bike paths, the culture of recycling and waste reduction, the quality roads and sidewalks and - I believe as I result - the happiness and friendliness that fills the people of Corvallis. The services that the Corvallis provides, like the FREE Public Transportation on the clean buses (and even Friday and Saturday Night Owl transport), are what makes Corvallis.... Corvallis. Sometimes when you have been in a place for a long time you forget to notice the things that you love about it. As someone who is still fairly new, I just want to say that what you have here is special. I have never been to another town that embodies what it means to be a community like Corvallis does. There is something about the way that Corvallis takes care of its people (in terms of basic public functions and services) that make the people want to, in turn, take care of Corvallis. So when it comes to a crossroads in the budget, my opinion is keep up what you have been doing. There are very few places in this country (and I have lived in 4 states) that feel like what we have here, and I would hate to see the things that make this town home go by the wayside in order to save a few cents on the dollar. If you must raise costs elsewhere in order to better fund community services, repair roads, and fund the library: do it. My impression is that the people that love this town, love it for these very things. And the people that oppose raising revenue, have become blind to the many ways which having a sustainable city budget enhances their lives. Do what you have to do to keep up the top-quality service that the citizens of Corvallis have come to expect out of you. Please don't gauge us, or take more than you need, or waste the money. But if a revenue increase is needed to continue being the city that my wife and I love, then by all means. Thank you for your time, Tyler Harran

83

Brewer, Nancy

From: Edward Dornlas


To: BudgetGoal

Subject: How to close the gap

Attachments: Blank 2.docx; ATT00001.txt

I commend the city of Corvallis for being concerned about the future. In many communities it seems like the city fathers are caught unaware of the need for more money. I lived in Corvallis for maybe 40 years and continue to own real estate in Corvallis. A major strength of the community is the first class city government. Excellent City government makes it possible and desirable for Oregon State University as well as various other businesses to thrive in Corvallis. The fact that the city needs more money shouldn't be a surprise as the situation is facing more and more communities in Oregon and elsewhere. Oregon has a strange dichotomy in that Oregon likes to provide services and Oregonians don't like to pay taxes. In Las Vegas, Nevada where are my wife and I now reside, currently the sales tax is about 8 3/4%. Additionally we pay property tax of about half that paid in Corvallis. And there is no income tax. If Corvallis would like to maintain its services as they are and continue to attract university and other business people it probably needs to raise more money. Although we are Corvallis landlords I suspect that the cheapest way to raise more revenue would be an increase in the property tax as the collection mechanism is already in place; only the numbers on the tax bill would need to change. Although I favor the sales tax, since there is no mechanism for collection of a SalesTax it would be necessary to establish a new bureaucracy which would be more expensive than simply increasing the property tax. Property tax is sufficiently equitable as it is passed on from the landlord to the tenants through rents. Landlords are currently City tax collectors at no particular cost to the city. So all that remains is for the city to explain to the residents that it's worth paying more to get current benefits and more benefits in the future. Unfortunately they will also have to be told that they are going to be paying more the privilege of living in Corvallis. Sincerely, Ed Dornlas 1900 Faywood St. Las Vegas Nevada 89 134

84

Brewer, Nancy

From: Candace Pate


To: BudgetGoal

Subject: Long Term Revenue

Hello, I received your brochure regarding the cities plans for long term budgeted revenue. I am not in favor of higher property taxes! You are going to force people out of their homes during the retirement years because they can't afford to pay their property taxes on a fixed income. It's not fair to the older population to stress about whether to eat or to pay their taxes and keep their homes. I would much rather have a small sales tax on purchases. That way everybody contributes to the city expenses, fire department and police force. Just my two cents. My second choice would be a local income tax. Sincerely, Candace Pate Sent from my iPad

85

Brewer, Nancy

From: Sandy Riverman


To: BudgetGoal

Subject: Sustainable Budget Task Force

You asked for feedback: Please know that all of our expenses are going up -- from insurance to basic utilities. Unfortunately, our salaries are not keeping pace and many of us are tightening our belts more than ever before. Therefore, I would opt for the local option levy renewal, since this option appears to have the least significant impact for Corvallis residents. I'm sorry if this isn't the response you were hoping for.

86

Brewer, Nancy

From: Elizabeth Bell


To: BudgetGoal

Thank you for giving us the opportunity to give feedback on the options to close the gap in city funding. We would prefer the Local Option Levy with an addition to the current rate. I also want to add that I find it ironic that the publication you distributed "Corvallis at the Crossroads" used a photograph of children involved in art activities as a way of conveying that "Corvallis is such a unique place". And yet the City has chosen to cut funding for art education and art activities dramatically over the last few year. The Art Center alone has had its funding from the City cut in half. I think this is most unfortunate if you truly want to maintain the livability in our community. Elizabeth Bell

87

Brewer, Nancy

From: Robert McLennan


To: BudgetGoal

Subject: Budget shorts

Benton County has property tax rates that are already too high. I just wrote a check for $8600 for my property for 1 years tax. The fairest way to pay for city services is too spread the cost by adding a state sales tax or a local income tax. Always expecting property owners to bear 100% of the burden is absolutely unfair.

88

Brewer, Nancy

From:


To: BudgetGoal

Subject: Newsletter feedback

Let me start by saying that I really appreciate the recent newsletter recently sent out by the city. It is great to be informed. That being said, I feel the city of Corvallis always has it's hand out for more money. I do not wish to see services cut, however I believe ways can be found to live within the monies you already have. It infuriates me every time I get my utility bill to see all the tacked on taxes - yes I know you call them fees but in all honesty it is a tax. Matter of opinion here. The city could eliminate the transit operations "fee". Why can't people pay for their own bus rides? Also, how about eliminating the amount of stops made. Good Grief - I live off of Kings Blvd and there is literally a bus stop every two blocks! That is utterly ridiculous!!! Just follow one bus for one route and you will see that I speak the truth. This is an ENORMOUS waste of fuel and wear and tear on the buses. It seems that walking four to six blocks to catch a bus is not unreasonable. I have used mass transit in large cities while traveling and I can guarantee they do not stop this often. This city needs to stop with all the freebies like this free bus and make all people of Corvallis step up and contribute. Whenever the city wants more money, you blackmail the citizens with the threat of reduction in services. The city needs to live within it's means, and look to eliminate the waste that goes on. My blood just boiled when I read in the GT recently that the city plans to increase our fees by 10%. I am sure that you will completely disagree with what I have written. I am a stout Republican who voted for Trump in hopes that some of this foolishness will go away. I am also pretty sure my husband & I are the only Republicans in this town who believe people should earn their way in this world and not sit around waiting for handouts. I also know that if I were to acknowledge my belief system in the editorial section of the GT that I would be targeted & threatened. Corvallis claims to embrace diversity but ONLY if you are a Democrat, not a person who thinks for herself and certainly not one who does not share the value system of 90% of this town. The homeless issue would diminish considerably if the city stopped making it so easy to come here. Again, more handouts because Corvallis has the reputation that anybody can get anything they want here for free. Has anyone ever considered making the people using our shelters to earn their keep by having them clean up our parks, streets, etc so we can free up funds for police, fire, etc? Just a thought. Put contingencies on free lodging such as you must do something in return to benefit the city. Novel idea,huh? Let me end this by saying that I do contribute to many charities but they are charities that are in line with my belief system. I am no bigot, racist or anything of that nature. I have friends from all walks of life and I embrace people from all walks of life but they are people who share many of my same values and hey if we disagree on something so be it. Sincerely, Debbie Miller

89

Brewer, Nancy

From: chladane@

Sent: Tuesday, November 29, 2016 1:45 PM

To: BudgetGoal

Subject: Prefer the "city service fee"

90

Brewer, Nancy

From: Diana Sutherin


To: BudgetGoal

Subject: City of Corvallis Budget - Comments

Good Morning!

Thank you for the informational materials that were sent in the mail. We appreciate the details provided.

We have some thoughts! First, here are a few facts about us:

Married, retired couple in our 60's, both living entirely on Social Security income. We own our home, making mortgage payments which exceed $1,300 per month. When we bought our home in 2003, the cost was $193,000. Now, based upon recent sales in the neighborhood, it seems to have a market value of around $335,000.

Property taxes on our home have risen steadily so that we now pay more than $3,800 per year. In addition, the city has added or raised water, sewer, transportation, and maintenance fees / taxes every year.

We love living in Corvallis, but we are beginning to wonder how much longer we can afford to do so. And, we also wonder how many other folks are in our situation, or worse.

This is a very expensive town, and we wonder if all these constant levies, additional fees, surcharges, and taxes that keep going up and up and up won't eventually gut this town of all but renters and wealthy investors.

Reading through your literature, we noticed the phrase "...Public Employees Retirement System (PERS) funding..." In our opinion, the city managers have caved in long enough to union demands to fund PERS into perpetuity. Private enterprises have long since abandoned pension programs in favor of 401K retirement plans. It is time for the city of Corvallis to do likewise. We can no longer afford this expensive drain on present and future revenues. And once enacted, most employees find they make more money, and the plans are portable, so they are not chained to one job or industry for their entire natural life.

So what is the downside? A strike? OK, that's a reasonable risk. Let it happen. So what then? After a few uncomfortable weeks or months, things will resolve and the city (hopefully state too!) is no longer held hostage to unceasing demands of a union that has too long controlled the purse strings of the public coffers.

Just another side note: We will not vote yes on any levy, any tax increase, any surcharges, or additional fees until the giant elephant in the living room (PERS) is brought into line with reality.

Perhaps we are speaking only for ourselves, and everyone else is delighted to pay more for the never-ending increases for nice amenities, But, we have to believe there are many more residents in a similar situation to us. Our income is not going up. Neither should the city's income go up.

If OSU and the hospital are tax exempt, why are we, the tax payers, paying for the burdens they place on the infrastructure?

91

The entire dynamic needs to be changed, particularly since it is apparent that the current model is no longer feasible.

Thank you very much for listening, and for the opportunity to respond to the issues.

Sincerely,

Diana and John Sutherin -- Diana Sutherin

95

Brewer, Nancy

From: judy

Sent: Thursday, December 01, 2016 10:15 AM

To: BudgetGoal

Subject: crossroads

My choice for Corvallis's budget is to cut back services and expenses and NOT add any more taxes or fees. Homeowners support the bulk of the city through property taxes. I don't have statistics, but from talking to property owners I would guess that the average yearly tax for property is over $5,000.00. Those same people pay federal taxes like everyone else and they also pay a higher state tax. I would guess the average homeowner pays at a minimum, $2,500.00 of state taxes. Many people in this town rent out rooms in their homes just to pay the costs. I am retired, so I don't have the income of those employed, especially those employed or retired from OSU or one of the governmental agencies. When the government runs someone else's business the cost increases at least three fold. tI is much more effective and appreciated when services are not given away. My vote is option #1. no new taxes.

judy

evans

1727 NW Woodland dr

96

Brewer, Nancy

From: Bart Jones

Sent: Thursday, December 01, 2016 5:32 PM

To: BudgetGoal

Cc: Ruth McNeill

Subject: "closing the gap"

I strongly support going for a long-term solution (as opposed to temporary fixes). This will require taxation: 1) Sales tax is a pain in the butt and requires every retailer to be a tax collector. Perhaps the extra labor would be slight, now that virtually all sellers have programmable computers -- but that's another energy pit. I might be willing to support a state-wide sales tax with all the proceeds going to one program, e.g. universal health care (?). I would NOT like a sales tax in only Corvallis or Benton County. Sales taxes are regressive: The poorer you are, the bigger percentage of your income gets taxed. To partially compensate for this inequity (if any sales tax is instituted), food and perhaps other basics should be exempt. Defining and deciding the exemptions would be another can of worms [sorry!], of course. 2) Property tax: well, yes, of course. I believe this should be the main source of sustainable city income. It's completely nutso to regulate property-tax increases by a fixed amount with no regard to inflation. (Especially when inflation is the larger of these.) Whatever legal hoops you need to jump through to get around this limitation, please keep doing them. 3) I think we've pushed the 'city services bill' gimmick about as far as it can go. (In fact, I would like all the current destinations of funds to be itemized on what used to be called the "water bill." That's a whole nother topic.) Good luck! --

97

Bart Jones 834 NW 10th Corvallis

98

Brewer, Nancy

From: Mr and Mrs Youdin

Sent: Friday, December 02, 2016 11:48 AM

To: BudgetGoal

Subject: keep Corvallis great

Our household supports continuing the quality of life in Corvallis, knowing full well that support from the federal government is about to see sweeping changes and that taxes may need to be raised even more than currently anticipated. Scenario #3 is where we lean right now. Looking forward to the vigorous discussions to come.

99

Brewer, Nancy

From:

Sent: Saturday, December 03, 2016 3:59 PM

To: BudgetGoal

Subject: Input on Budget Goal

Hello there ‐

We appreciate that the City of Corvallis asks for the input of their residents. It’s very refreshing! Here are out thoughts:

Local Income Tax – We feel like we are already maxed out on taxes between federal, state and property taxes.

General Sales Tax – People would go to neighboring cities to shop in order to pay less and avoid paying the tax.

Local Option Levy – Our property taxes are higher than what we paid when we lived in Northern California. We aren’t complaining, Corvallis has a lot to offer and the city provides immunities that we did not get due to property tax laws put in to place in the 1970’s.

City Service Fee – We are not opposed. It would depend on how much.

We definitely aren't financial gurus, but one thought we have is what is the City of Corvallis doing to attract new business to town? Would the city benefit from new businesses? There is a lot of empty office and retail space all over town. Doesn’t HP have an empty building that another business might be interested in? More business = more jobs = more property owners that would share in making up the deficit in one form or another. (Whichever is decided upon)

Just our thoughts…

Thomas & Dawn Coupe

2008 NW Myrtlewood Way, Corvallis

100

Brewer, Nancy

From: Greg Gerding

Sent: Tuesday, December 06, 2016 10:05 AM

To: BudgetGoal

Cc: 'Greg Gerding'

Subject: Corvallis Options to close the gap

One of the major deficits all governments face in Oregon is PERS and as a state we are not doing anything to address it. My three proposals stem from the increasingly high cost of personnel for city government.

1. Establish a freeze on ALL city employee hires. PERS costs are a huge detriment to any sustainable budget until PERS costs are brought under control by the legislature.

2. Outsource all non‐governmental services. The city should not have city employees performing services that can be performed by local businesses that can perform those services much cheaper and much more efficiently. In addition, the city would not be saddled with those enormous PERS costs and the inability to lay‐off a city employee or fire an incompetent employee. Using local businesses gives the City Manager much more flexibility in managing the city budget. If the budget must be cut, he/she can terminate a business contract, unlike a government employee who, due to government employee unions, essentially have lifetime employment.

3. City government should perform government‐only functions. Government should NEVER be in competition with local businesses. City government should not be purchasing/investing in capital equipment performing street, area maintenance functions that could be better served by local businesses. Reduce city staff and employees. Free up those personnel costs to conduct other essential services.

Sincerely, Greg Gerding

101

Brewer, Nancy

From: Tony Ashby

Sent: Tuesday, December 06, 2016 10:37 PM

To: BudgetGoal

Subject: "Corvallis at a Crossroads"

Dear Corvallis at a Crossroad staff members, As a tax‐paying citizen of Corvallis, I read with interest, and a measure of dismay, your descriptions of the options available to us to close the gap between the City’s expenses and its revenues. You posit three scenarios. The first has no new revenue, which results in cuts in and elimination of some services. Scenario number 2 shows reduced – but still rising! – revenues, and the funding gap continues to grow. Scenario number 3 is obviously the preferred alternative among city politicians and employees, requiring “the most from community”, which we all know means higher taxes, but offers to put the City “on more sustainable footing for the future…” The thinking down there in City Hall obviously has not undergone any critical review for a long time. Your answer to every problem is always “vote for these tax (also called fee) increases, or we will be forced – sob! – to close important services, such as senior centers and the aquatic center. I would like you to turn your agile brains to another approach: Look for ways to reduce expenses! Yes! It can be done! Here’s one idea: A few years ago, you decided, in a spirit of magnanimity, that Free Bus Service was a good idea. It was not. It resulted in the harassment of elderly people, who need the bus, by young slackers and thugs, who with nothing better to do, thought it would be fun to take a free ride and make trouble. My idea: Restore fares to $2 per ride; this won’t break anyone’s bank, and it may deter punks from taking their free ride. But the elephant in the room, which is driving public expenditure in Corvallis and every other city and state in the Union – or so I understand – is public employee retirement. The current rate of spending on public employee pensions is forever growing, with no solution in sight, and if not corrected will continue to increase, and in the end drive to zero all other public expenditures. AT A MINIMUM, Corvallis must install, for all new employees, not a guaranteed benefit program but instead a guaranteed contribution program, such as the 401(k) programs that employees in the private sector have. And when you do set up such a program, its investments should be handled by a single person, who invests only in index funds, and leaves them alone. Find the recent article in the Wall Street Journal about the man who runs Nevada’s public employee fund investments. Thanks for listening. H. Anthony Ashby

3115 NW Buttercup Drive

Corvallis 97330

1

Brewer, Nancy

From: Mark O'Brien

Sent: Tuesday, December 06, 2016 11:15 PM

To: Brewer, Nancy

Subject: Fwd: Sustainable Budget

---------- Forwarded message ---------- From: Mark O'Brien < Date: Tue, Dec 6, 2016 at 11:10 PM Subject: Sustainable Budget To: Mayor and City Council Cc: "Traber, Biff" < >, Penny York , Jim Day

>, "Shepard, Mark" , Curtis Wright < >, Joel Hirsch >, " < , Barb Bull <b >, Mike McInally <

December 5, 2016 To: Sustainable Budget Task Force From: Mark O’Brien, Member, Sustainable Budget Task Force Subject: Revenue Alternatives/Unfunded Actuarial Liabilities Discussion: The following definitions can be found in Council Policy 1.12, Community Sustainability. These statements reflect Council and community values and should weigh heavily on our continuing work to ensure Corvallis remains in the best possible fiscal health moving forward. *1.12.031 Sustainable – ability to be maintained or continued indefinitely.

*1.12.034 Sustainability – using natural, financial and human resources in a responsible manner that meets existing needs without compromising the ability of future generations to meet their own needs.

There is absolutely no debating that fiscal decisions made today will have a significant impact on future generations. Many of the discussions we have had to date, as a task force, regarding revenue generation have focused on the potential for positive and short term wins for City service delivery. Little of our time has been spent considering the potentially negative and long term implications of such recommendations.

My purpose in writing this memorandum is to emphasize the need for careful and thoughtful consideration of the positive and negative impacts of whatever recommendations we might make to the Council and our community.

In my opinion, an election campaign is not a full fledged discussion; neither is an awkward op-ed or a glossy newsletter filled with coded language. Maybe I should write one of those. Hmm? No, that is something I should probably discuss with the task force first.

As I’ve often cautioned, I worry that we are a bit off the track on the discussion of a “sustainable budget” and on to something that looks rather Orwellian. Based on feedback from my own community engagement, I’m not the only one who thinks so. Don’t we owe our constituency better. For example, consider the proposal to outrageously increase the street maintenance fee 700% and in the face of significant miscalculations with respect to businesses; the heart of the Corvallis’ tax base. Though I was at the point of the group who identified the mess-up, I still want to pay my fair share and staff has been terrific. Fair share...

Recommendations:

If you have not read the excellent Corvallis Finance Dept. report at the link below you should do so immediately. It is informative and timely.

2

Organization Wide Unmet Needs In the event the City successfully accesses a new revenue source via an income tax, sales tax or renewed levy the City Council should consider the following: Use only a portion of enhanced revenue to: *Fund only a moderate level of service enhancement in public safety services; police, fire and 911. Use the balance of enhanced revenue to: *Front-end fund the City’s OPERS share of the PERS unfunded liability. *Establish an irrevocable trust to fund OPEB liabilities in an amount equal to what the City currently pays for for explicit liabilities plus an amount to grow the trust over time. *Drastically reduce the rate of accrual of employee sick, vacation and comp time as currently allowed under City policy in order to reduce future liabilities. In the absence of new revenue.. achieve nearly the same via budget cuts. Conclusion: If the City, somehow, develops a new revenue source and chooses to spend it, in its entirety, on enhanced services we will have simply created a short term/band-aid solution to current wants and needs. This will only exacerbate our current and dire financial position. It would actually make our situation worse. The structural problem reality is that our expenses annually increase 6% while our revenues increase less that 3%. So all new revenue spent in this manner will not address the “structural problem” but actually enhance it!!! Makes it worse...Until a significant portion of revenue is dedicated to servicing the unfunded liabilities things will continue to be difficult or impossible. Lets stop kicking the can down the road. Please don’t do that to my/our kids. Cheers, MOB

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