Tangent City Council
Minutes
July 23, 2008
Mayor Seaton McLennan called the session to order at 7:003 p.m. with the following:
PRESENT: COUNCILMEMBERS:
Dan Leahy, Brad Tedrow, Jim Wagner
and Mayor Seaton McLennan
ABSENT: COUNCILMEMBER:
Tammy Casper
ALSO PRESENT: STAFF:
City Administrator, Georgia Edwards
PLEDGE OF ALLEGIENCE: Mayor McLennan asked all to stand and join with him in the pledge
of allegiance.
MISCELLANEOUS CORRESPONDENCE:
o Oregon Planning Institute conference. ACTION: City Administrator Edwards will let the
Planning Commission know that the council has approved to pay for a Planning
Commissioner to attend this conference if they desire.
CITZENS COMMENTS:
o Mayor McLennan
o Noted that historically the agenda has included under Citizens Comments, the words”
on items not otherwise on the agenda.”
o It makes it appear that they cannot comment on matters on the agenda.
o Removing these words would allow citizens to comment at the beginning of the meeting
and then go home if they have other matters to attend to.
o Councilmember Wagner
o This would allow the citizens to make comments on matters the council is going to
address.
o He feels this is as important as matters they may want to bring up that aren’t on the
agenda.
o He feels it makes sense to have a regular mechanism for making comments on items
on the agenda.
ACTION: It was agreed to drop the phrase “on matters not otherwise on the agenda”. It was
agreed to allow the mayor to change it if the meetings gets out of hand. It was also noted that
audience members need to know that when there is a public hearing, they need to comment
during the hearing time on hearing issues.
CITIZENS COMMENTS: None
Tangent City Council
Minutes
July 23, 2008
UNFINISHED BUSINESS:
Ordinance 2008 – In the Matter of the Fill and Drainage Ordinance, Repeal of Ordinance 2004-11,
Establishing a Fee for this Service and Declaring an Emergency: It was noted that the City
Attorney has advised that we table this issue to the next agenda. It was agreed.
Resolution 2008- In the Matter of Establishing Fees for expenses incurred for NSF checks, stop
payment, returned checks, and reissued checks. Councilmember Wagner moved to approve
RESOLUTION 2008-13. Seconded by Councilmember Tedrow. PASSED UNANIMOUSLY.
Discussion on Tax Base, establishment of fee, schedule of public hearings:
o Mayor McLennan
o He noted that the net affect is $5.45 to the Linn County Sheriff’s levy, if they established
a tax base at $2.00.
o Councilmember Wagner
o Noted that if they make it less than that, it would be $0 affect.
o We can basically say that at $2.00 per thousand, it is slightly affected.
o At $4.5 per thousand it has an $18,000 effect.
o Councilmember Tedrow
o Questioned why we should worry about the tax base effect on a local option tax.
o The tax base can never be changed once it is established.
o He noted that if Tangent becomes larger, they may need more income and questions
why they should limit themselves.
o He noted that the City of Albany has a much higher fee and effect.
o It could be 6 years before they actually levied an amount at the higher range.
o They need to look at issues down the road.
o They need to leave the options open for the future.
o Councilmember Wagner
o Stated he is tending to think like Councilmember Tedrow at this point.
o His biggest concern is the perception of a lot of people, at some time you can arbitrarily
increase it to the higher amount.
o He noted they are going to have to explain the issue to people.
o Noted that tax laws don’t remain static.
o To try to second guess what the laws would be in 10 to 30 years would be difficult.
o City Administrator Edwards
o Noted that a sales tax has been floated around, to replace the property tax.
o She questions how they would be able to receive funds from that if they don’t now have
a tax.
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Tangent City Council
Minutes
July 23, 2008
o Councilmember Leahy
o Noted he would like to go with the lesser amount of $2.00 per thousand.
o Mayor McLennan
o Noted if they are going to move ahead, the City Attorney will need to draft a ballot title.
o Do they want to wait until next August?
o City Administrator Edwards
o Explained that the ballot tile will need to be ready for the council and they would need to
have a hearing on the issue at their August meeting.
o They need to decide on an amount, hold a public hearing.
o They can change the amount after hearing public testimony if they so chose.
Councilmember Wagner MOVED TO DIRECT THE CITY ATTORNEY TO PUT FORWARD A
BALLOT TITLE, FOR A TAX BASE OF $4.5 PER THOUSAND. Seconded by Councilmember
Tedrow.
o Councilmember Wagner
o Noted that it has been argued that people have the power of the ballot box and can vote
us out of office.
o However, in the eyes of some people, that is after the damage is done.
o He noted that the base would keep the amount available if needed.
o Mayor McLennan
o Felt that this would make them extremely transparent as they would need to show what
exactly the money is going toward for a levy.
o Councilmember Leahy
o Expressed concerns about those in the community who have extremely limited funds.
o He feels they should give them the option regarding raises to the levy in the future.
o The citizens need to speak and let them know their thoughts on this issue.
o Councilmember Wagner
o Stated that where and what they are spending with the citizen’s taxes is a problem with
every entity who levies taxes.
o He doesn’t know of a mechanism that is neutral.
o Some people are inevitably going to be hit harder than other.
o He noted he doesn’t like paying taxes.
o However, he sees it as something we really need to do to insure that we have the place
to live that we want to live in.
o It was noted that it will impact the most, people who are living on valuable land, but
don’t have much in the way of income.
o Curt Smith
o Questioned if the city would reduce the fees?
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Tangent City Council
Minutes
July 23, 2008
o Will they put a limit on how much they could tax on any one year?
o He questioned if they would keep a certain amount in reserve.
o He noted that Brownsville keeps over a million in reserve and feels that is excessive.
o Mayor McLennan
o
Explained that they haven’t made those kinds of decisions yet.
o Councilmember Tedrow
o Question why they would only go for $4.50 per thousand.
o Is it a question of that would be easier to sell?
o Mayor McLennan
o Thought that was one reason.
o If they sell it as a place holder, than the whole thing about a levied amount would be
discussed later.
o He noted that people who have the knowledge of what that really means would be the
most vocal.
Discussion ensued on the amount to go for and the time to go forward.
o Councilmember Wagner
o Suggested that they could alter the number up or down after the hearing, if we
understand that the number we are suggesting is just for putting it on the table.
o They would need to make it very clear at the start of the hearing, that this is a number
for discussion and that they will set the actual amount after the hearing.
o Councilmember Tedrow
o Once you say a number, people will glue to that number.
o He feels that they could talk about a higher amount, rather than limiting them in the
future.
o He noted he doesn’t like the word tax, but is more comfortable about it after spending
time looking at the issue.
o He noted that for some people who come to the hearing; this will be the first that they
hear about it.
o They need to let the citizens understand that this is a number they are kicking around.
o He feels that setting a number will polarize people.
o Mayor McLennan
o Noted that no matter what number they pick, it will be a long education period for the
citizens.
o He thought perhaps they should pick a number and then go forward.
o If they go forward and they don’t have any number, it will have the same effect if they
discussed it tonight.
o If they start at $6 that might create a different reaction.
o He noted that some cities are higher than $4 and some are lower.
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Tangent City Council
Minutes
July 23, 2008
o He doesn’t feel that he could justify a higher amount, though it is where they are now
and not where they are 20 years from now.
MOTION CALLED: Ayes: Councilmember Wagner, Councilmember Tedrow and Mayor
McLennan. Opposed: Councilmember Leahy. THE MOTION CARRIED.
o It was agreed to have the meeting at the Central Electrical School.
ACTION: Councilmember Wagner will put together a tax base fact sheet. It will include
information on the tax base rates for different cities in the area. It was agreed to have the City
Attorney attend the meeting and answer technical questions if needed.
o Mondalee Lengkeek
o Stated that she would like to know what this means to the tax payers.
o She would like to know the benefits of a tax base.
o Some points noted:
o If we don’t set one soon we could lose the ability to levy one at all.
o If the county, fire department and county library eat up the remaining base, there
wouldn’t be any left for us to use.
o People will be paying the money, but to someone else, not Tangent.
o If we don’t establish a tax base, we will have to up the fees and they won’t be able to
claim those fees.
o They aren’t currently able to keep up with enforcement of city codes.
o They are only able to do minimum park maintenance.
o Our outside sources of income and state revenue sharing have increased slightly, but
the expenses have also risen.
o We can receive more money from the state revenue if we have a tax base.
Discussion/approval of audit contract:
o Councilmember Tedrow
o Has met with the auditors.
o He raised the concern of not having a cap.
o They did explain that there are new regulations in relation to the audit.
o The disclosures that they are going to set up for the city will be more expansive.
o In Oregon our audit firm can still do the financial reports.
o That ability will soon be gone and we will either have to hire someone to do them, or
produce them ourselves.
o This should reduce our audit costs.
o He thought that Jeff Smith was knowledgeable enough to do the financial reports, but
was not sure if he had the ability to do the disclosure reports
o Someone at the city is going to have to sign off the financial reports.
o Curt Smith
o The city needs to consider how they are doing in capitalization.
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Tangent City Council
Minutes
July 23, 2008
o He feels they need to pick up the land for parks and sewage system and there are
areas where they could add on to their assets.
o He feels it would give them a better idea and enhancing the city’s coffers in the future,
though there would be a cost to this.
The contract will be on the next agenda. The meeting adjourned at 8:40 p.m.
Attest:
Approved:
____________________________
Mayor, Seaton McLennan
_____________________________________
City Administrator, Georgia Edwards
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