3A
THE DAILY ASTORIAN • TUESDAY, JUNE 28, 2016
Seaside budget approved
as city looks to the future
By R.J. MARX
The Daily Astorian
SEASIDE — Teamwork,
strong revenues and a road
construction project nearing
completion led to unanimous
approval of the Seaside budget
at Seaside’s City Council meet-
ing Monday night.
The budget calls for expen-
ditures of about $18.7 million,
an almost 20 percent reduction
from this fi scal year’s budget of
almost $23 million.
The decrease comes from
the near completion of a North
Holladay Drive reconstruction
process as crews fi nish curbs
and paving before power crews
install underground utilities.
Construction crews will vacate
some areas by the July 4 hol-
iday to accommodate parade
visitors, Public Works Director
Dale McDowell said, although
the parade route has been altered
because of the construction.
With North Holladay Drive
renovations complete, the city
could address other building
needs, City Manager Mark Win-
stanley said after the meeting.
These include construction of
the Avenue U bridge and a pro-
posed renovation of Holladay
between First Avenue and Ave-
nue A.
The city is in the design
phase to replace the Avenue U
Bridge, at an anticipated cost of
about $3.5 million.
“We’d love to get some
money from the Oregon Depart-
ment of Transportation to help
us with that bridge,” Winstan-
ley said.
The next phase of the Holl-
aday Drive renovation has yet
to be scoped, but it is a much
smaller area. “We expect that
will be much more affordable,”
he said. “The North Holladay
project was a huge project and
we’re not going to be doing any-
thing like that for a few years.”
If a proposed $15 million
Seaside Civic and Convention
Center renovation is approved,
the budget could be adjusted to
get the project up and running
before the end of this fi scal year,
Winstanley said.
The city could also play a
role in the development of a
new Seaside High School cam-
pus, he added. If district vot-
ers approve a bond to relocate
geographically at-risk schools,
the city would need to pro-
vide water and sewer systems
on the new site, proposed for
an 80-acre parcel on a hillside
immediately south of Seaside
Heights Elementary School.
“We’re not to that point,”
Winstanley said. “The school
district needs to see if they can
get out and get their levy passed,
and if they do we will certainly
be happy to work with them.”
Because the city’s revenue
sources were good, he said, end-
ing fund balances are up, “which
is a good thing. We’re not run-
ning quite as tight as we have in
past years.”
City personnel act as a team,
councilors and staff said, in
which everyone fi lls a particu-
lar role.
“We have very good depart-
ment heads,” Winstanley told
councilors. “They all do an
excellent job and we’re very
lucky to have them.”
“Organizations really excel
when all the right people are on
the right seats in the bus and it’s
really running smoothly,” Coun-
cilor Jay Barber added. “I give
large credit to Mark for hiring
the right people and supporting
them, so good job.”
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6
NW Natural says initiative
will cause 2 percent rate hike
Initiative
could act like
sales tax on
consumers
By PARIS ACHEN
Capital Bureau
Northwest Natural esti-
mates it faces an $11 million
to $14 million annual tax hike
if a controversial corporate
sales tax measure wins voter
approval in November.
Recouping that cost would
likely entail raising custom-
ers’ natural gas utility rates
by at least 2 percent, after fi ve
rate decreases in the last sev-
eral years, a company spokes-
woman said Friday.
The gas company’s esti-
mates follow an analysis by
the nonpartisan Legislative
Revenue Offi ce in May that
showed Initiative Petition 28
would act largely as a sales
tax on consumers. A mid-
dle-income family could see
an increase in costs of about
$600 per year , according to
the report.
If passed, the measure
would impose on certain cor-
porations an additional 2.5
percent tax on sales greater
than $25 million in Oregon.
Revenue from Initiative
Petition 28 could infuse state
coffers with about $3 billion a
year, stabilizing the state bud-
get and growing public sector
jobs by nearly 18,000 in the
next fi ve years.
Backers of the tax mea-
sure are pushing for that rev-
enue to go toward education,
senior services and health
care.
Northwest Natural’s esti-
mates illustrate how the tax
could impact businesses and
consumers.
The Legislative Revenue
Offi ce estimated that the tax
would “dampen” the econ-
omy by slowing job growth in
the private sector by 38,200.
tomers in Oregon, now pays
about $6 million per year in
state corporate taxes, said
Melissa Moore, a company
spokeswoman . Under IP 28,
the company’s corporate
taxes could double or triple
to up to $20 million, Moore
said.
The estimated 2-percent
gas rate hike from the initia-
tive petition accounts only for
the additional cost in corpo-
rate taxes. Northwest Natu-
ral also anticipates additional
indirect costs to its operations
such as an increase in the
‘This is yet another
example of huge
corporations using
scare tactics to avoid
funding our schools
and critical services.’
Katherine Driessen
spokeswoman, A Better Oregon
Another report by the Ore-
gon Offi ce of Economic Anal-
ysis found that the average
company subject to the tax
could see their corporate taxes
skyrocket from $200,000 to
$2.2 million per year.
Northwest Natural, which
serves about 640,000 cus-
prices of pipes, valves, vehi-
cles and insurance. Those
costs could drive up rates fur-
ther, Moore said.
“We support education
and social services, but we
don’t see this as the way to
do it,” Moore said. “We are
opposed to IP 28 because
it’s a regressive tax that
will increase costs to our
residential and business
customers.”
A Better Oregon, the
union-backed
nonprofi t
campaigning for the mea-
sure, said Northwest Natu-
ral’s numbers are inaccurate.
“Northwest Natural paid
only $24,000 in state income
taxes in 2014, a tiny per-
cent of the $100 million in
profi ts it made that year,”
said Katherine Driessen, a
spokeswoman for A Better
Oregon. “So not only can the
company pay more in taxes,
it absolutely should.”
She noted that the Oregon
Public Utility Commission
would have to approve any
rate increases, and that North-
west Natural could deduct
part of the state corporate tax
from their federal taxes.
“This is yet another exam-
ple of huge corporations using
scare tactics to avoid funding
our schools and critical ser-
vices,” she said.
The Public Utility Com-
mission has to approve any
utility rate hikes, but tax
increases are one reason
that the commission would
consider granting a rate
jump, said Michael Dough-
erty, PUC’s chief operations
offi cer.
The Capital Bureau is a
collaboration between EO
Media Group and Pamplin
Media Group.
Visit us online at
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