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http://www.omniture.com --> Sections Home Page Local News AP News Blogs Archives Business Classifieds Event Calendar Forums Life Opinion Obituaries Multimedia Photo Gallery Readers Photo Gallery Sports Tempo Weather Road Cams Special Coverage 2006 Britt Festivals --> Shop Our Valley AutoFinder HomeFinder JobFinder Search Our Valley Special Sections Distinctly Northwest Readers' Choice Homelife Magazine Joy Magazine Oregon Golf Info Oregon Wine Info Other Publications Local Links Ashland News eSouthernOregon Newspapers In Education Personals Moving Here Movie Listings TV Listings Volunteer Customer Service Advertise With Us Media Kit Place Classified Ad Contact Us FAQ's Home Delivery Site Map --> Email Story to a Friend February 16, 2007 Phoenix mulls water fee Surcharge would fill gap in funding for essential city services By BUFFY POLLOCK for the Mail Tribune PHOENIX — A water bill surcharge proposed to bridge a half-million-dollar annual funding gap could surpass the cost most residents pay for water here. City manager Dale Shaddox presented facts and figures to some four dozen residents Thursday night. No one appeared thrilled with the idea of a surcharge, but most residents seemed to admit a solution was needed. In a nutshell, a surcharge of between $32 and $38 per month could be implemented in coming weeks. The necessary base fee to address a $530,000 annual shortfall would be $25-$30 per month, per property. The fee would maintain existing city services and fund capital improvements for police and fire and $100,000 annually set aside for construction of a future city hall. In addition, some $170,000 in capital funding needed for public works would require an additional $7.90 surcharge per month. Water rates could increase by $5 per month to cover increasing expenses. Advertisement News of the funding shortfall came in recent weeks when newly hired Shaddox held a study session with council members to discuss the city's financial situation, which he called a "crisis situation." Over the past decade, an annual third-of-a-million-dollar budget shortfall had built up, Shaddox said. Then, this year, the city's rainy day fund was used for property on which to build a future city hall. While a loan was taken out to repay the city's rainy day fund, the money was spent again on necessary city staffing. The two biggest issues facing the city, Shaddox said, were a lack of forecasting for future budget needs in years past and expenses increasing at a faster rate than revenues. Business owner Caroline Bartell urged the council to consider selling its property along Highway 99 and suggested disbanding an urban renewal district, freeing more dollars for the general fund. While Bartell's two suggestions would not solve the city's budget woes, she reasoned, they would result in a smaller surcharge. Resident Don Mitchell agreed, questioning plans to build a city hall to replace existing temporary quarters. "You talk about having a city hall with plush chairs, air conditioning this is plenty good enough for me right here," Mitchell said of the Phoenix High commons area used for the city meeting. Shaddox said selling city assets or disbanding urban renewal would not provide enough funding to bail the city out of its predicament but would only provide a "short term Band-Aid." Shaddox told residents that the Council would make the final decision; options include passing a surcharge, requesting a funding levy or putting an "advisory measure" on an upcoming ballot. Some residents questioned what would happen without a surcharge. By state law, a city must provide five municipal services to remain incorporated. Without a surcharge, Shaddox said the city would suffer from inadequate police and fire and streets in disrepair. "As a community, we need to make a decision to be a community and step up to the plate," Shaddox said. "That's my opinion." Council member Lee Carrau sympathized with citizens on limited monthly incomes. "I'm a legitimate old goat on a very fixed income," he said. However, "we're talking about less than a buck a day. For the sake of the city, you've got to think about it." Councilor Mike McKey called the surcharge "a big pill to swallow." Additional meetings are set for today at 2 p.m., at the city public works facility, and again at 10 p.m. Tuesday. A regularly scheduled City Council meeting has been rescheduled due to city office closures Monday, which is Presidents' Day. Shaddox told audience members the surcharge issue, as of Thursday, would be the only agenda item. Buffy Pollock is a freelance writer living in Medford. E-mail her at [email protected]. Would you like to respond to this story? If so Click Here to visit our forums. Advertisement Copyright © 1997-2007 Mail Tribune, Inc. All rights reserved. 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