Petition aims to give residents final say on new taxes and utility charges; critics warn of ‘fiscal paralysis’

By Steve Mitchell, Ashland.news

The Ashland City Council mulled a proposed charter amendment that could change how new city fees and taxes are collected during its Monday, Oct. 20, study session.

The council’s discussion centered on whether to allow a citizen-driven initiative to proceed through the traditional signature-gathering process or to expedite it by approving it for placement on the ballot.

The ballot measure proposes to change the Ashland Charter and require any new tax or utility fee to be subject to voter approval.

The potential ballot measure comes on the heels of the council’s approval of hikes in the rate of two and addition of another additional fee on utility bills to support wildfire mitigation, public safety, and the Parks & Recreation department earlier this year.

Councilor Bob Kaplan pressed George Kramer, the chief petitioner of the ballot measure, on the language of the initiative. Kaplan said the council added inflation adjustments to two existing fees — the ambulance and wildfire fees — because it seemed “logical and sensible” given that they had not been increased. He said the council added automatic inflation adjustments to the city’s newest fee hikes since they did not anticipate increasing them.  

Kaplan said he was loath to ask the staff to put out a ballot measure that would undue the inflation adjustments.

“We’d have to seek voter approval for every inflation adjustment every year,” Kaplan said.

Kramer said he was not aware of the automatic inflation adjustments that were written into the fees. He said the purpose of the ballot measure was to provide a “stopgap” to the city’s leaders.

He said the council could make a proposal to voters that a fee needs to be increased by a certain percentage to keep up with inflation. From there, Kramer said, it would go out to people to vote on “as a community and decide if that’s right.”

“The intent of this is to require the council and the city to be more thoughtful and in partnership with the community before it creates new fees,” Kramer said. “It’s supposed to slow you down. That’s the intent.”

During the public comments period, Linda Adams, an Ashland resident, said that, while Kramer’s proposal seems democratic, it is a “fundamentally flawed idea” and would cripple the city’s progress by “empowering misinformation campaigns.”

Adams said those who feel strongly about a fee can seek a referendum through an existing process, which includes recalling elected officials. Kramer’s proposed amendment would create “fiscal paralysis,” she said. The ballot language as written would require a fee proposal to be decided at the next regularly scheduled election — either in May or November.

She said the recent history of city hall and capital improvement bonds going down to narrow defeats was as a result of “misleading campaigns that preyed on voter fear.”

Adams said fees are often technical and necessary for the long-term solvency of a specific department, which includes fees for public safety equipment or facilities maintenance.

She said a “well-funded opposition” can easily derail fee proposals by branding them as a new tax or an unfair burden.

The council did not make a decision on whether to advance the measure, but did agree to bring the issue back for further discussion.

Kramer said supporters of the initiative could get the required signatures to get the proposed amendment on the May ballot. According to the Oregon Secretary of State’s website, he would have to get signatures from 15% of registered voters in Ashland to get the initiative on the ballot.

He told the councilors that the council can either support the democratic process by voting to put the issue on the ballot — which would remove the signature requirement — or be a “roadblock.”

Utility discussion

Councilors participated in a discussion about the city’s long-term wholesale power agreement between the Ashland Electric Utility and the Bonneville Power Administration.

With the city’s agreement expiring in 2028, the council is looking to replace it. According to Bonneville Power officials, the new terms guarantee the city with a fixed amount of hydroelectric power, greater flexibility to pursue small local renewable projects, and new strategies to mitigate rate fluctuations.

City infrastructure

Councilors recieved an in-depth legal and technical briefing on the city hall structure by Ashland Plaza — a building with mounting structural, legal and financial liabilities.

The city’s construction and legal teams outlined a lengthy history of seismic vulnerabilities, ADA noncompliance, and outdated electrical, plumbing, and HVAC systems. Repair cost estimates have ballooned in recent years, now potentially exceeding $8 million for basic code compliance.

Legal staff further warned of complications arising from the building’s original deed and a “reversionary clause” — meaning ownership could revert to the land donor if the property isn’t used as a city hall or for public use, raising uncertainties about future redevelopment.

Councilors decided that the city needs a strategic plan to address the city’s future and the city hall’s structural uncertainties.

Email Ashland.news associate editor Steve Mitchell at stevem@ashland.news.