5A THE DAILY ASTORIAN • WEDNESDAY, APRIL 19, 2017 Health care: ‘Without new revenue, Water rates: No big increase for 10 years mean revenue paid from the ways to classify businesses and Continued from Page 1A rates would be guaranteed to go residents. we don’t have a lot of options’ to public works related projects Why now? Bertellotti said the rates Continued from Page 1A “The goal of the list is to move the pro- cess along, ” said state House Speaker Tina Kotek, D-Portland. She also said it was intended to “educate” the public and the leg- islative assembly about the choices lawmak- ers will have to make in order to eliminate the shortfall. “It’s definitely a wake-up call,” Kotek said. “If you look at those reduction lists, Ore- gonians are going to see things that they care about on those lists. And without new reve- nue, we don’t have a lot of options.” Kotek said that conversations about a tax on health care providers were “ongoing,” but that the list of cuts released Monday does not include that or any other new revenue propos- als. A group of legislators from both parties and chambers is meeting privately to hash out a possible consensus on business taxes. Senate Minority Leader Ted Ferrioli, R-John Day, claimed in a statement that Democrats were presenting a “false choice of either accepting unconscionable cuts … or raising taxes.” In November, voters rejected a pro- posed gross sales receipts tax on cer- Ted Ferrioli Tina Kotek tain corporations, Measure 97, which was projected to raise $6 billion in new revenue for the state’s upcoming two-year budget. In its wake, some of the ballot mea- sure’s opponents have called for addressing the costs of the state’s public employee pen- sion system and other long-term cost drivers first. Kotek said that the list of possible reduc- tions did not address Oregon’s budget in the longer term — merely the two years of the next budget cycle, which begins in July. The Capital Bureau is a collaboration between EO Media Group and Pamplin Media Group. There has not been a sig- nificant rate increase in Can- non Beach for 10 years, Gras- sick said. Because of this, the Pub- lic Works Department has not been able to fully cover oper- ational costs without dipping into the general fund, Grass- ick said. While this has been the status quo in Cannon Beach, Grassick said there are long-term issues with depend- ing on a fund that relies heav- ily on hotel and rental room tax revenue. “During the recession, the general fund was tread- ing water,” he said. “It fluc- tuates, which you don’t want when you are in the middle of a project.” The rate increase is a way to prove to lenders the city has a way to pay its operational and capital costs when applying for a revenue bond, Grassick said. He said this approach would rather than paying down inter- est passed on to residents in the shape of property tax on debt from a general bond. It would also eliminate com- petition between public works and other services in town that pull from the general fund. But each year the city doesn’t approve a rate increase, the further behind public works gets on infrastructure projects, he said. “This plan is the meat and potatoes of public works,” he said. “We’re engineers. We like to build stuff.” If adopted, high prior- ity projects chosen would be included in the 2017-18 bud- get and be constructed over the course of five to seven years. Alternatives Public works committee members hope to explore alter- natives to how the water rate is structured, including different need to be explained in a way the average resident in Cannon Beach “can understand how much they are paying and what it is for.” Les Wierson, another mem- ber of the committee, also sug- gested proposing a tax levy to fund the number of high prior- ity projects listed in the plan. “I’m not sure it’s worth spending this amount at an accelerated rate. This looks like we are replacing an entire sys- tem, and I don’t think we need to do that,” Wierson said. Both Wierson and Ber- tellotti advocated for finding opportunities to rehab projects rather than full replacements. Grassick said that the mas- ter plan is a living document, and that priority projects would be evaluated every two years or so. “You can kick the can down the road, but the issues will still be there,” Grassick said. They’re your dreams. Start building them. Consider a U.S. Bank Home Equity Line of Credit for your next project. With competitive rates and flexible payment options, lasting home improvements could be within reach. Introductory rates start as low as 1.99% APR. HOME EQUITY LINE OF CREDIT Introductory rate for 6 months Rates as low as Variable rate after introductory period 1.99 % 4.64 % APR* APR* Rate available 2/25/17 – 5/5/17. Rates are subject to change. Rate shown for lines of credit: – Up to 70% loan-to-value – U.S. Bank Consumer Checking Package Actual rate may be lower. Visit usbank.com for custom rates. 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