Rogue River council to discuss gas tax...

admin | 2006-02-18 10:22

ROGUE RIVER - The City Council will place a gas tax on next week’s agenda after a public workshop failed to ignite much opposition from area motorists.

Council members in January had opted to table the first reading of the proposed ordinance after about two dozen people attended the meeting. They set up Thursday's study session as an opportunity for informal dialogue on the topic, members said. Fewer than a dozen people attended Thursday’s hour-long meeting.

"We anticipated 300 people last month," City Administrator Mark Reagles said Thursday. "About 25 showed up. There are even less tonight."

The city is looking for funding for roughly $2 million worth of street repairs. The gas tax could supply $85,000 annually from the 3-cent-per-gallon charge if consumption remains the same at the town's two gas stations, said Reagles.

State gas-tax funds for 2005 amounted to only $95,000 in revenue for the city. Tax revenue from the city’s two stations will provide only partial funding for repairs, Reagles noted. But the combined income might finance enough repairs to keep city streets - which have not been paved for 20 to 25 years - from deteriorating to the point where costs increase to $5 million, Reagles said.

Ellen Erickson, who lives just outside Rogue River, attended both meetings. Motorists from Wimer, Evans Valley and Sams Valley as well as out-of-state visitors regularly use city streets, said Erickson. They should bear their fair share of street repairs, she said. Putting the entire financial burden solely on the city's residents is unfair, she added.

"Nobody likes to see prices go up for anything," said Erickson. "But repairs are necessary."

Greg Hayes, speaking on behalf of the Chevron station in Rogue River, said the proposed tax unfairly singles out his business and the Shell station.

"This (tax) could put us at a competitive disadvantage," said Hayes.

Hayes asked the council to take the ordinance to the public for a vote - he claims an informal survey of 100 patrons at his station showed 10-1 against the gas tax. "This is a hot-button issue with people," he said.

Hayes said 30 to 35 percent of summer customers are non-local visitors traveling up and down Interstate 5. But most locals say they will drive to Grants Pass to buy their gas, Hayes said.

"Some said just because they're opposed to a tax, they wouldn't buy gas," he said.

But the city's two stations already charge up to 20 cents more per gallon than Grants Pass stations, said Reagles. Those currently using Rogue River stations would continue out of habit and expediency, he said.

Councilwoman Jo Anne Mead said she fills her tank in Grants Pass. Should the ordinance pass, she will begin patronizing Rogue River stations, Mead said.

"I will buy my gas here," said Mead. "Your service station will gain at least one customer."

Rogue River residents Dennis Classick and Bill Jones floated alternate tax options. Classick suggested a 1 percent consumption tax on all Rogue River businesses. Jones supports the fuel tax, but the former Ashland resident also said a food tax on the city's half-dozen restaurants might add to street-repair funds.

JoAnn Dixon, another local motorist, said people opposed to the tax need to gain perspective on the numbers. A tax of 3 cents per gallon comes to about 45 cents per fill-up, she says.

"Let the people know they're just spending about $14 a year," said Dixon. "They spend that on a pizza. Let's move on."

The council agreed to place the ordinance on its Feb. 23 agenda.

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