Now that Albany has a city law calling for a monthly street maintenance fee, though not yet the fee itself, let’s review a couple of things that law says.
Once it is established, the fee will be added to monthly city bills for water and sewer service plus storm water management and the city services fee.
The first detail worth noting is what the street-fee money is for. The ordinance says:
“The primary use of the funds shall be to perform maintenance of the city transportation system through pavement preservation and street reconstruction activities. Funding is also approved for ancillary improvements including bicycle and pedestrian improvements, striping, sidewalk and curb ramps meeting the requirements of the Americans with Disability Act (ADA).”
But don’t expect your particular street to be repaired just because you paid the fee. The ordinance adds:
“It is not necessary that the expenditures of the Street Maintenance Fee revenues specifically relate
to the parcel or property from which the fees are collected.”
Another point worth noting is who is supposed to pay the fee. According to the law’s text, the fee will be “imposed on the owner, tenant, agent, or other responsible party of developed property in amounts set forth by City Council resolution. The fee shall be based on the developed property’s direct and indirect use of, or benefit derived from the use of, the City’s transportation system and is reasonably related to the cost of providing these services; it is not a property tax.”
At this week’s city council meeting, on Wednesday, Councilwoman Matilda Novak brought up, in an unelated context, a provision of the ordinance that calls for civil fines of up to $1,000 per day on anyone who a hearings officer finds has “willfully or negligently failed to comply with any provision of this chapter, and the orders, rules, and regulations issued hereunder.”
I can’t think of a circumstance where this penalty might be applied. The language seems to be common in other ordinances related to utilities, but there is no reason for it to be included in this one.
The only way not to comply is to ignore your utility bill, and if you do that the city has ways to collect on delinquent accounts. And if someone can’t afford to pay his water bill, there’s no way a civil penalty is going to help.
The council passed the fee-authorizing ordinance on Sept. 25 on a vote of 4-3, with Mayor Alex Johnson II casting the deciding vote.
If it wants to go ahead with the fee, the council must still approve a resolution setting the amount and determining the rates for different types of utility customers based on their presumed “trip generation.” Preparing all that will take months.
In July, consultants told the council that a street fee of $16 per month on the average household would yield about $6 million a year. The consultants recommended that the city set a goal of rebuilding or repaving 52 blocks of local streets in the first year.
Achieving that amount of repaving would be an accomplishment so huge that even people who object to the fee might be pleased. (hh)
When I started my retail establishment some time ago, the SDC street fee was substantial. The city did not expend a dime on maintenance or improvements related to my project. I have no idea where that money went. Happy to pay my fair share for street maintenance, but before I do someone is going to have to explain where that SDC money went.
Your 27 Nov 2023 report identified the “funding” needed to fix Albany streets “will cost $12.8 million per year for 40 years.”
Now you report that the average $16/month “fee” will yield about “$6 million a year.”
I’m not a Math major, but based on your reporting $6 million a year means the street problem won’t be solved for about 80 years.
And you conclude that “even people who object to the fee might be pleased.”
Huh?
p.s. A fee based on “property” is a “property tax”, regardless of what the city lawyer wrote into the ordinance. And per state law a property tax requires voter approval. This ordinance appears ripe for a legal challenge.
You’re right Gordo you’re not a math major. You also don’t even live in Albany or the state anymore. Do some basic research. Do you think maybe the $6m is on top of the $7m currently available for street repairs? Or do you honestly think what you wrote? What I read online (Google it) was that the council told staff to fix the major roads first while the roads in front of people’s houses in the older parts of town (from Hasso’s map) fall apart from years of council twiddling their thumbs and spending money that used to be spent on roads to police and fire instead. That would be the “I pay taxes” crowd. Easy to find this info but zero or our property taxes go toward maintenance of our streets. Some used to but now I guess most of it goes to public safety. I’m sure you’ll disagree with the basic facts. Hopefully you’re recovering from the Hurricane damage in North Carolina.
I stand corrected if your assertion of $7M is correct.
So instead of 80 years, the problem will now be fixed in about 79 years. Thanks for the clarification.
No, not North Carolina math. 7million is how much they appear to get from the state each year for streets and that I guess goes to busy streets, not side streets. Every year, not once. Really???
Where do you see $7 million a year for street maintenance? The 2023-2035 budget, page 219, has $4,897,000 for street maintenance for the biennial budget. There is an additional $20,648,500 for street capital & restoration for the same time period. The entire street budget for 2023-2025 is $38,699,700. I don’t think lack of funds is the issue here.
Maybe look at the personnel in that budget. Like how many engineers.
“Achieving that amount of repaving would be an accomplishment so huge that even people who object to the fee might be pleased. (hh)”
Doubt it! Considering the amount of inconvenience of waiting for a flagger. Exhibit A would be your post a few days ago.
Side note. Albany’s Util billing system is still screwed up. I pay every month. Still my mailed bills show i owe more. Checking online… I owe ZERO.
Absolutely absurd this council is is an embarrassment to Albany.
Yes, I agree very aggressively. I think we should need to go to a capital improvement district Instead of a street maintenance fee a capital improvement district means that you have skin in the game and that the street will be repaired in front of your house instead of wherever in town!
Let’s get all behind a Improvement district for our street funds. Thanks for listening.
So it goes to the highest bidder? How does that even work? So rich neighborhoods get streets and working class get nothing? Isn’t that the system we already have? Looks like it from Hasso’s map.
Corvallis has many fees on their “city services bill” including street maintenance, sidewalk maintenance, transit (pays for gas for the city’s fareless bus system), urban forestry, as well as public service fees for police and fire. There is also a low income assistance fee. These fees can be raised or lowered at any time. My understanding is the fee is a way to “get around” the limit on property taxes as everyone has to pay the fee. With property taxes, non profits don’t have to pay. Of my monthly bill, approx 44% goes to these fees. Do I like them? No!!!! They can call them “fees” and then they don’t need to be voted on. If they called them a “tax” it would have to be voted on to increase or decrease.
And, speaking of Corvallis, their Chamber of Commerce head, who made a good salary, had to to back to North Carolina, because, even though her salary was much larger than her salary in North Carolina, her cost of living in Corvallis went up by 55% from what it was in North Carolina. She said she preferred to stay in Corvallis, but she could not afford to.
WHAT THE ? This is outrageous. We already pay taxes for this. Where is that money going to? Personally I can’t afford more tax/fee on my bills. Fixed income. Perhaps city councilors and whom brought this up in first place need to step out. Tired of We the people getting stepped on
Who would decide what streets would be worked on I see streets being repaired close to business.
Not on streets in neighborhoods.In my neighborhood most of the damage is done by City busses and large trucks taking a short to deliver to stores on 34 Ave
I live on 28th Ave off of Marion.
As I stated before, nonprofits like the shelter get funding, donations, pay no taxes and the increased costs of running the city has to come from somewhere. Maybe they thought that the smoke shops would contribute enough money to help pay for all the extra city services and offset the money spent on the nonprofits and the problems they cause. Everyone I know expects to pay because they have no choice and are disparate for relief from the flood of crime that the city has invited to the city. The city made a camp where drug use was allowed despite the crimes that were being committed. The shelter wanted to offer low barrier beds to get more funding which brought more homeless that expected to continue using drugs without consequences. The traffic cams, all these extra fees are a way for the city to recoup their losses. No one cared how the city would suffer for these expensive acts of compassion or the costs to the people that live here. No matter what fees we pay, we will still have potholes and chronic homelessness. It’s like the old joke about out running your friend, not the bear. The mayor, city manager and council don’t have to out run their problems, they just have to out run us.
No matter how you word it, it is TAX!
Should we continue to push to the future repairs of our streets such as our former councilors did or do we bite the bullet and pay for it now and into the future. A couple of years ago a gas tax was submitted to a vote and it was voted down. Why? One comment
was We would by our gas elsewhere. Let’s not push the repairs of our streets any further down the line. Councilors keep proceeding with the processing of the utility fee.
I have been under the assumption that the taxes we pay went towards repairs needed for road maintenance. What has been funding it up until now? To add another “Fee” on our utility bill will be the straw that breaks the camels back for many on a fixed income. This propensity to circumvent the voters on issues like this has to stop.
You assumed wrong. I recently read that none of the property taxes we pay to the city go to roads. Some used to but now it goes mainly to police and fire. Pretty sure I saw a graph somewhere online with that info.
This is going to sound cliche, but I can’t afford my water bill now as it is. The city keeps increasing the fees, as I understand 3 times a year – council approved all of them. And frankly, I don’t see why with all the increase in properties built that doesn’t bring in more than enough property taxes, of which should be covering this issue. And what about the federal infrastructure funds? Why isn’t that being utilized for this exact purpose? Albany needs a shake up of management. I really would like to see the breakdown of where all our monies are being paid out to, because I suspect there is something criminal going on.
I too would like an independent party to oversee exactly what our taxes (and “fees”) are being used for. The citizens will never see a ROI for what the Waterfront project cost (and will continue to cost). CARA is running out and the council seems to be creating a “slush fund” (like the traffic cameras), probably to fund more of their “pet projects” instead of helping our crumbling infrastructure.
Google “Oregon MAV property taxes” to understand the lunacy of how Oregon property tax operates, particularly MAV. One of the many consequences is everyone getting nickel-and-dimed with various fees like this to raise revenue.
From what I could find, infrastructure funds are being used for:
“The city of Albany will receive nearly $1.9 million to plan, design and construct EV charging stations at four locations: a city-owned parking lot serving the Albany Train and Multimodal Center; a city-owned lot in historic downtown; at the North Albany Park & Ride; and at a commercial area near the corner of Interstate 5 and Highway 99E.”
“Albany Mayor Alex Johnson II responded to the welcome news of federal financial support: “We’re very grateful to Representative Chavez-DeRemer and Senators Wyden and Merkley for their support of vital wastewater infrastructure development in Albany. This funding goes a long way to make it possible for our city to open up areas for development, build additional housing, and thereby provide much needed relief from the upward pressure on housing prices.”
“$1.25 million for the City of Albany to undergo Phase 3 of its Interceptor Project to improve wastewater infrastructure. Completion of the expansion and extension of the Cox Creek Interceptor is critical to provide sewer service to east Albany community members. The funding will help construct 2,400 feet of a sewer main, including a portion which will be bored under Interstate 5.”
What in the hell is MAV? What happened to teachers teaching that if you use an acronym you first spell out what it means, and then, after that, you can use the acronym?
Maximum Assessed Value (MAV). The original intent was to take the value of someone’s property based on what it was worth in 1998 and use that as a base for an “assessed value” then multiple that by 1 1/2% to figure out what was owed for property taxes. 1% goes to the county and city, 1/2% goes to the schools. They do it as $10 per thousand and $5 per thousand of assessed value. Each year that 1998 level can go up to a 3% increase in assessed value, that becomes the new MAV. The 1 1/2% tax is then applied to that new value and the 3% increase in assessed value compounds each year. It’s all done under Measure 5/Measure 50.
The original intent was only additional liabilities on property could be added through levies and bonds and must pass through a double majority, 50% of registered voters had to vote and 50% had to vote “yes”. It was intended for projects and expenses that the community was very much behind or deemed essential. That all changed when Measure 56 was passed in 2008, 956000 to 735500 votes, any number of registered voters could vote and a 50% majority achieved could pass a bond or levy and add that as a liability on the tax statement. That’s why taxes just didn’t go up 3% over the last few years as originally designed, they went up the 3% plus everything that passed under the new rules. That’s the gist.
My conjecture: They’ll fix the streets around downtown, in the bordering historic districts, and then it will be piddled away on ancillary projects.
Instead of incentivizing developers to build in our area, how about they start paying for services their resident will use? (Schools, roads, parks, etc.)
Other places I have lived required this and it did not cause a lack of building. Additionally, the city and county need to address a traffic plan for North Albany into downtown. Ignoring it won’t fix it. Isn’t that your job?
Their very first project better be east of down town. It’s like a war zone/3rd world country on those roads. I understand it’s not the highest income neighborhood but those people must be livid mad that their cars shake and rattle anytime they want to leave the house. Why are we repaving Queen when the east downtown neighborhood is not even drivable? That neighborhood’s council person is failing them badly. It’s embarrassing to have roads even like that in this town. Completely inexcusable for a city this size. Surprised the residents haven’t revolted yet.
If I believed for one minute this Fee would be used for street maintenance and repair . I might be in support But like any other Fund they will find a way to divert the funds. 2nd we are getting told that this fee is needed because of Electric vehicles less then 5% of Albany residents drive Electric vehicles and the ones that do live mostly in North Albany where they don’t seem to have an issue getting the streets repaired. I have watched roads in North Albany paved after a single pot hole is discovered. Yet 7th Street where Albany’s only hospital is located is like a mine field ambulances caring 90 year Olds bounce up and down like they have Hydraulics. And some how 9th has been completely redone curbs and all twice in last 10 years . Guess who lives on 9th . . You want me to pay more Taxes . Fine happily after every department of city of Albany is Audited .. I guarantee six months after this fund is created we will learn Funds were diverted into somebody’s pocket . Political Service was supposed to be public service . Yet 98% politicians end up with net values as high as 100x when they 1st started.
Mr. Calhoun wrote that the property taxes are mainly used for the police and fire departments now and none to the roads anymore. What do you think caused that shift of funds? The extra funds to increase the services for the homeless population has drawn more homeless here increasing the crime rate, illnesses and overdoses that require more police and ambulance services. The city needs to evaluate the whole picture before they get all excited about free money. Nothing is really free but the city leaders do not have to pay for their reactionary behavior and lack of impulse control. Easy fixes never work long. The societal trickle-down theory is that the working people get what little is left over and all the responsibility. The city needs to earn their high wages and make plans that are real solutions that benefit all of its residents.
Wrong chris j.
Property Taxes have been primarily used for three major service areas: Police & Fire is the biggest chunk by far, and also included is Parks. This is not new. That’s the way its been for many decades. Plus, Police and Fire services are VERY expensive.
Streets maintenance has been funded through State Gas Taxes, and the relative amount received dropped greatly since the 1960’s when most cars averaged 10-12 miles per gallon. In the 1970’s was the Arab Oil Embargo, which drove up the cost of gasoline massively, and which then included the great change in cars when MPG per vehicle started getting to 15, 20, 25 and up to today’s 50 mpg vehicles. That meant that the per vehicle tax revenue dropped as fewer gallons per vehicle meant less revenue.
It’s not ancient history, but you clearly didn’t understand what has happened and did not try to get a historical understanding. You should ask your elected councillors and/or the city management for real information as to “why” instead of jumping to WRONG conclusions.
If there is no correlation between paying the fee and getting a benefit of said fee, it is a tax. If it can be used for ADA, Striping, Bicycle lanes, at the whim of the City, it will be used for whatever somebody screams about. Look at the map, this is just another system to tax everyone to help the people downtown who didn’t have to pay for the street to begin with. The only fair way to charge for streets at this point is to have a Local improvement District to fix the street in front of your place, if it is a feeder or collector, then that part should be subsidized at the percentage of the traffic that is passing by thru other means.. This would include the Downtown Core.