Chamber supports referendum on $10M city fee

from the Eugene Area Chamber of Commerce and staff reports

Eugene voters should decide the fate of a $10 million annual fee, according to the Eugene Area Chamber of Commerce.

The Chamber issued a press release supporting a referendum effort “because we believe voters should have a voice in decisions that create permanent fees for core government services.”

Chief petitioners submitted a referendum petition Feb. 20, signature sheets were approved to circulate Feb. 21, and signatures are due to the city recorder by March 13. Advocates must collect at least 5,817 valid signatures to qualify for the ballot.

The Chamber explained that its primary concern with the fee is “that the city is spending more than it brings in year after year. That issue cannot be solved through temporary fixes or new fees that postpone difficult decisions. Cuts will have to be made with or without the fee. We must create a sustainable financial plan that prioritizes core services while ensuring the city lives within its means.”

While city staff has touted its new budget system as priority-based, the city manager acknowledged Jan. 15 that the city council has never actually set priorities. The two work sessions titled “Council budget priority workshops” Jan. 15 and Jan. 22 resulted in “scenarios” based on proportional cuts to city departments.

The Chamber said “the community needs to prioritize core services expected to be provided by our local government and ensure those things are funded fully. If services are at risk after funding public safety, and the community wishes to maintain those services, then the community should have a chance to do so by voting on funding clearly tied to those services.”

The Chamber emphasized its continuing support for public safety, while also noting past endorsement of ballot measures for libraries, parks, and schools.

The fee, branded as a “fire fee” because it would dedicate $2 million each year to fire and EMS services, was approved Feb. 10 by a 5-3 vote. The deciding vote was cast by Councilor Matt Keating, who said he would “hold my nose and stand in the affirmative.”

According to the Chamber, a median single-family home would pay $10 per month, the median commercial customer would pay $38 per month, and larger properties will pay up to $1,750 per month.

Before its approval by the City Council, the Chamber had asked that the measure be referred to voters, expressing concerns about transparency and public perception.

“One of our primary concerns is the expectation created by this fee,” Chamber President and CEO Brittany Quick-Warner wrote in an email message sent to all city councilors Feb. 10. “The public will reasonably assume that $10 million in new investment is being made into Eugene’s Fire Department. In reality, $8 million of this revenue will be redirected into the general fund to cover existing budget deficiencies. This risks eroding trust between the city and the community, as residents and businesses will not see the full impact of what they believe they are paying for.”

The letter also expressed concern that “moving forward without voter input could jeopardize public confidence and
impact future funding measures, including the Community Safety Payroll Tax renewal.”

The Chamber urged the City Council to engage in a “comprehensive, priority-based budgeting process to bring city services back in alignment with available resources.” Following through on the city’s promise to create an actual priority-based budget “would provide a more transparent and sustainable path forward while restoring community confidence in the city’s fiscal management.”

“We remain open to discussions about alternative solutions and urge city leaders to engage with businesses and residents to find a path forward that addresses the issue long-term,” the Chamber said. “We value our partnership with the city and know that we can accomplish a lot of good work together. As a business community, we pledge to work side-by-side with the city to build stability for essential services while balancing the financial impact on local businesses and families.”

Others have pointed out that a fee based on building square footage will be passed along to renters in a city already designated as severely rent-burdened. Thirty-one percent of Eugene renters are already paying more than half of their income for rent and utilities.

Because an approved fee can be increased without approval by voters, some opponents are calling it a “forever tax.”

During a public hearing on the fee Nov. 18, 2024, firefighters also questioned whether the fee would actually help them. “Is there anything in this fee that will help improve our response times?” asked the president of the firefighters union local. “Our response times have gone from four minutes up to seven. Will this fee ensure that we keep our engine staffed or is the community going to lose an engine in the neighborhood fire station if it doesn’t pass?… Is this truly the fix we’re looking for or is it just another temporary measure? Really consider how this fee would reduce the overwhelming call volume on these engines and bring relief to the current crews.”

During public comment Nov. 25, 2024, the mother of a Eugene Springfield Fire captain characterized the fee as “not quite honest.”

“By attaching the label ‘Fire Fee,’ it sounds as if the Fire Department will receive all the money, when, in fact, 80% of it will go to the city’s general fund,” Virginia Donohue said. “I worry that the public will lose trust in city government if you are not transparent in how the money will be allocated.”