Jun 152011
 

Toledo City Councilors adopted the city’s budget for fiscal year 2011-12 which raises fees, taxes and utility rates for all Toledo residents and businesses. The budget also sets aside a total budget of $40,000 for raises for city department heads which, according to a city survey, are paid substantially less than their professional counterparts in other Oregon cities of similar size.

City Manager Michelle Amberg, backed up by Mayor Monica Lyons, told a questioning resident that Toledo department heads don’t have collective bargaining rights as city workers have, and so they have not received any major pay raise in years, apart from standard cost of living increases. Amberg said the city has been lucky to have department heads who love their jobs and love living in Toledo, but if for any reason they chose to leave for a better job, the city would have to pay a far higher salary to a qualified replacement. “It would have quite an effect on the city budget” said Amberg. She used an example of the city finance director. She said the going rate for a finance director for a city the size of Toledo is around $91,000 a year. She said the current finance director doesn’t make nearly that much. “So if we can give our finance director a decent raise we’re money ahead.” She said the situation is nearly identical with each department head position in the city. She said the $40,000 set aside for raises doesn’t mean it will all be awarded since each employment situation is unique.

The budget also involves tax, fee and utility rate hikes; $3.65 a month more for water and $5.60 more a month for sewer. Garbage pick-up will rise 90-cents a month and a first-ever fee on electric bills will be levied at around 75-cents a month. Total hit to the family budget: around $11.00 a month. And, of course the customary 3% increase in property taxes for home and commercial property owners.

Recently there have been a number of major utility breakdowns that have proven the need to raise water and sewer rates to pay for repairs before both utility systems completely fall apart from old age. Both water and sewer systems have been in the ground for well over sixty years. Some sections even longer. With the rate increases taking effect July 1st, the city will finally be charging enough for water and sewer that the federal government will invite Toledo to apply for low interest loans and grants that will hasten the replacement of it’s aging utility systems.

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 Posted by at 11:52 PM
Jun 072011
 

When it comes to running cities and counties, nothing’s cheap anymore. That’s why Newport is reviewing its laws, codes, fees and tax schedules to ensure that revenues coming into the city are properly levied and that nobody gets a free ride. Or a complicated ride, or a less than fair ride, or, or, or….

Enter the discussion: Business license fees and hotel/motel/vacation rental room taxes. The current laws covering those revenues are seen by many to be in deep need of a tune up as to which kinds of businesses, with multiple sub-businesses, should pay what, and for how much.

A task force made up of major sectors of Newport’s tourism community have spent the last few months going over the city rules about all this while also checking with other cities and counties around Oregon to see how they view their own situations. The task force told the city council Monday night that Newport’s business license fees and room tax rates were not comparatively out of line. But how they are applied need adjusting. And they gave a progress report on a near-final set of recommendations on how the city’s business license and room tax codes should be changed.

They displayed a progressively higher business license fee for businesses with a higher number of employees. They also asked the council to make sure that city coffers are getting room taxes from everyone who has rental property, even if they’re just renting the other side of a duplex, “they’re making money, and making money is a business” they said.

The task force also said that if a company is based outside of Newport, yet does business in Newport it should, in most cases, be required to get a Newport business license. However, they appeared to be agreeable to special events like Farmers Markets, Seafood and Wine, and the Lincoln County Fair to fall under a single umbrella fee paid by the event promoter.

The task force said it would continue to meet to iron out any wrinkles in their final recommendations to the council. City Finance Director David Marshall said that fiscal year 2011-2012 business license renewals will go out in the mail to all local Newport businesses before the end of the month so any changes in business license provisions won’t take effect until next fiscal year, starting in July of 2012.

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 Posted by at 1:17 AM
Jun 032011
 

Betty Krause (L), Bill Ensign (R)

In 1972 as part of her work on her Master of Business Education Degree from Oregon State University, Betty Krause was required to participate in a voluntary public service project. She chose to help in a new effort to help people prepare their income tax returns. And now, 40 years later she is still at it! Her project later part of what is now known as the AARP Tax-Aide program and Betty is recognized as one of only 3 people in the United States who have served in this capacity for 40 years.

When she and her husband retired to Newport in 1995, Betty joined the local AARP Tax-Aide group and continued her work. In those days tax returns were prepared using pencil and paper ( and eraser). Then, 1997 AARP began using desktop computers with tax preparation software. Currently, Betty uses a laptop with a sophisticated software program installed.

In recognition of her many years of service, Betty was given a 40 year pin and Plaque which was presented by Bill Ensign, State Coordinator of the AARP Tax-Aide program. A reception for Betty is scheduled at the Newport Senior Activity Center for June 6th at 10:00 a.m. in the Education Room. Anyone interested in congratulating Betty is encouraged to attend.

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 Posted by at 10:43 AM
May 042011
 

Facing a sizeable budget deficit for the next fiscal year starting in July, the Toledo City Council reviewed a proposal Wednesday night that would raise the city’s franchise fee on electricity by three-quarters of one percent. Total revenues raised by such a proposed increase; $867,000 a year according to a city report. The report reveals that 60% would go to the city’s general fund, and 40% to the street fund.

Since the franchise fee would be added on to each electric customer’s bill, residential and business, an electric bill of $75 per month would rise 56-cents a month and 75-cents a month on a $100 a month electric bill.

The council only discussed the proposed franchise fee increase. It will be included in further city budget discussions, likely targeted for a June 1st decision. There was a brief flurry of comments about a Georgia Pacific “gift” to the city, or GP purchase of city property, that might negate the need for a franchise fee increase, but it was discussed only conceptually. Councilor Mark Camara urged his fellow councilors to not let such a notion of a GP “gift” or purchase sway the council from doing what it needs to do, and that is “balance the budget as if no such gifting or purchase is in the offing.” Camara said if the city accepted a gift or purchase arrangement, the city would be right back looking at franchise fee increases in a year or two.

On June first (if not before), it should all be a little clearer to Toledo residents.

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 Posted by at 10:09 PM
Apr 272011
 

The Oregon House has passed a bill that would transform Oregon’s notorious kicker law that would stop “kick refunds” in favor of something milder, like tax credits. The story is in the Oregonian. Click here.

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 Posted by at 1:50 AM
Apr 252011
 

Rep. Kurt Schrader, D-Oregon

Dear Friends,

It’s time to have a serious conversation about our nation’s fiscal health.

Oregon families have conversations about family budgets every day and they have the right to expect their representatives to deal with our nation’s fiscal problems the same way. One thing is clear. We are on an unsustainable fiscal path and inaction is not an option. Inaction means in less than 14 years the entire federal budget will be taken up by interest payments on our debt and to fund entitlement programs. That means no money to educate our children and prepare the next generation. No funding for public safety or the defense of our nation. And no funding to repair and maintain our roads, bridges and other transportation systems.

In other words, unless we do something the 21st Century will not be an American century.

A problem of this magnitude requires bold action. We have to cut spending, but we have to be smart about it. Cutting too much, too fast could devastate our economy. Even John McCain’s own economic advisor has said the ‘meat axe’ approach would cost 700,000 jobs. Earlier this month I introduced a series of benchmarks including serious spending reductions, real tax reform, protections for entitlement programs and budget process reforms.

You can see my full plan by clicking here.

As a small businessman, state legislator and now as your Representative in Congress, I know the choices won’t be easy but we have an obligation to our children and grandchildren to get it right.

Sincerely,

Kurt Schrader
Member of Congress

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 Posted by at 5:06 PM
Apr 252011
 

A long running battle between the “Gypsy Community Patriarch” of Portland and the IRS has taken an interesting twist. The IRS had confiscated the “patriarch’s” money claiming that he willfully understated his tax obligations. But a judge ordered the IRS to give the money back, and then sentenced the “patriarch” to a federal work camp. The clash of cultural definitions of what is earned vs simply being “held” is in this story from the Oregonian. Click here.

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 Posted by at 4:04 PM
Apr 222011
 

Toledo City Manager Michelle Amberg told her city council this week that there are a number of ways to fill a $100,000+ gap in the city budget. One that she says she’s leaning toward is a 1.5% boost in the city’s electrical franchise fee.

According to a Central Lincoln People’s Utility District spokesperson, the CLPUD includes franchise fees as their cost of doing business inside a city or county. However, anything over 3.5% is added to customer monthly bills. So If a Toledo family pays an average of $100 a month for electricity, it would raise their monthly bill $1.50 a month. If they pay $50 a month, it would go up 75-cents a month. Whether franchise fees on electricity will be used to help balance Toledo’s city budget for the fiscal year 2011-12 is up to the city council which is immersed in that budget setting process.

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 Posted by at 2:04 PM
Apr 202011
 


(Click image to play video)

A group of tax protesters gathered at Highways 101 and 20 Monday, Tax Day. These protesters, joining thousands of others across the country were angry that two-thirds of American corporations pay no taxes at all to the U.S. Treasury including the likes of Boeing, GE and most oil companies. The protesters point to an IRS report that four hundred of America’s wealthiest individuals take home more money than half the population of the country.

President Obama Sunday indicated his own frustration with the huge redistribution of wealth in America that has taken place over the past 30 years. A stark redistribution upward. He blamed too few people holding too much money, money that should be in circulation in this county instead of being invested in foreign countries that offer up obedient and low paying workers in China, Singapore and Vietnam. Obama and Oregon’s own Congressional delegation supports a streamlining of the U.S. Tax Code so that the top corporations and the most wealthy pay a larger share of the country’s costs to be a country. The tax code in the 1950′s was 91% for the rich. Today, it’s mostly 15%, causing a huge draw down on the country’s ability to invest in education, job creation and re-establishing its rightful place in the world economy.

Others called for an end to “America always being at war with somebody.” One protester said “spending a billion dollars every other day in Iraq and Afghanistan and not having it count in the budget is mindless and only shows the political power of America’s military weapons industry to dominate Washington.”

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 Posted by at 8:03 AM
Apr 172011
 

For the past few years there has been a growing chorus of conservatives who claim that democrats or the liberal wing of the Democratic Party are trying to re-distribute the country’s wealth as a “slide toward Socialism.” According to the Internal Revenue Service, it’s true that there has been a dramatic shift in who holds the country’s wealth. Except the IRS reports the country’s wealth has been flowing uphill, not down. Such a revelation would seem to bolster arguments that America’s recovery from the worst recession in 80 years is being dragged down by too much money being held in too few hands. The IRS actually uses the phrase “the richest 400 American taxpayers” as commanding an enormous amount of wealth that exceeds that of half the the country. The story is in the Oregonian. Click here.

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 Posted by at 4:54 PM