PHOENIX — After more than two months' discussion, residents and business owners will begin to see a $20 monthly surcharge to fund public safety and streets on water bills beginning in August.
Council members made the decision to approve what many called a "Band-Aid solution" on Monday night after much deliberation and a lukewarm reception by two dozen audience members.
The surcharge was proposed by newly-hired City Manager Dale Shaddox, who reported a $700,000 shortfall to the city's general fund just weeks after taking his post. The $20 monthly fee will provide almost $470,000 in funding for the 2007-2008 budget cycle, effective July 1, which will provide $330,000 for general funding to police, fire and public works, $50,000 each to police and fire for equipment and just under $40,000 to cover low-income exemptions to the surcharge.
While Shaddox told council members that a $700,000 patch would barely fund minimal city services, for which he suggested initial amounts of between $37 and $39, the council's deliberation and citizen input resulted in the lower amount to start.
The rate will apply for 12 months, during which time a special "Blue Ribbon Committee" will be formed to discuss ways to increase the city's revenue and to determine whether the surcharge should remain in place.
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Resident Jeff Bella voiced concerns that "the people that got us into this mess ... are going to be the creative geniuses that try to get us out of it."
Resident Steve Brown said the city should consider contracting police and fire at a reduced cost with area service districts. He said that all cities in the Rogue Valley except Ashland and Medford are served by larger districts.
"True, it is nice to have a fire department, but are you willing to sacrifice the future of the city to provide fire service?" he asked.
"You are all arguing over a $20 increase that's not going to solve the problem. You shouldn't have to fund your police and fire on a series of levies because that's unfair to (city employees and to citizens)." Council member Mike McKey assured audience members the surcharge was a short term Band-Aid until the city could get its finances in order and identify other funding sources.
Former mayor Darrell Paxson scolded council members for being "terribly, terribly difficult to work with" and for not listening to citizens.
"You are not here to dictate. You are here to absorb and to listen," he said.
"You are tearing this city apart and if you keep going the way you are, I really challenge your qualifications." Shaddox felt the decision, was "... a long way from where we were 90 days ago," Shaddox said.
"We've at least got $469,000 additional revenues for one fiscal year. And this gives the community a chance to discuss other alternatives to better funding city services."
Council members plan to consider, and possibly adopt, guidelines for granting surcharge exemption status to low-income residents at a May 7 meeting.
In other news, city manager Dale Shaddox announced that fire chief Matt Lichtenstein had tendered his formal resignation, effective March 23, only to retract his decision just hours before Monday's Council meeting.
Lichtenstein made a formal statement Monday, confirming Shaddox comments, but did not specify reasons for considering resignation. Lichtenstein stated merely that he'd "identified some tools" to enable him to continue as fire chief. In his letter of resignation to the city, obtained by the Mail Tribune on Monday, Lichtenstein requested he be permitted to return to his position prior to June 2004, of firefighter and company officer
