To provide stable funding for city street improvements, the Hines Common Council is considering implementing a local fuel tax, if approved by voters.

At its meeting on Tuesday, May 14, the council discussed putting in a one-cent fuel tax with the funds dedicated to city street repair. Although the tax would affect local residents, the city would also benefit from the large number of travelers coming through town and fueling up their vehicles.

City Administrator Kirby Letham told the council that he contacted the Oregon Department of Transportation to get the amount of fuel sold in Hines. The average for the past three years has been just under 2.5 million gallons of gas and a little more than 1.5 million gallons of diesel. Using the averages, Letham calculated that the city would have taken in about $41,000 per year to maintain and/or repair city streets.

Knowing that a fuel tax would also affect locals, Letham explained that if a family purchased an average of 70 gallons of fuel each month, the tax would cost them an additional $8.40 per year.

Letham said he contacted other cities that implemented a fuel tax, and they had favorable reports. One city manager reported that they started with a three-cent tax the first year, dropped it to two cents the following year, and down to one cent in the third year, and that is where it has stayed. Letham suggested that the council consider that plan, as it would give the city a bigger “injection of revenue” the first two years.

Councilor Gary Miller said if Hines implemented a fuel tax and the city of Burns didn’t, it might cause more people to fill up in Burns because of the additional cost.

“I think it would be unfair to our gas stations unless Burns was on board with it too,” Miller said.

Eric Woodworth, owner of Hines Market, said he talked to some of his customers who live in Burns about the possible fuel tax.

“They said if it’s up to five cents, like three to five, they will stop in Burns,” Woodworth said.

Councilor Hilda Allison said the positive thing about a fuel tax would be that the community would know exactly where the funds go.

Letham added that he is not an advocate of big government or additional taxes, but there is a need for improvements in the city, and this option makes sense.

Letham admitted that the timing isn’t good, as the state legislature is currently proposing a number of new taxes to roll out, but his recommendation to the council was to give it a try. He also reminded the council that the decision will be made by the voters, not the council, as it will have to go on a ballot.

“This would give us a small portion of money that we could depend on to be proactive about improving our city streets,” Letham said.

The council agreed to do more research on the issue before making a decision.

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The council adjourned the regular meeting at 6:45 p.m. to hold a budget committee meeting.

Letham, the budget officer, reviewed the current budget and explained the adjustments made since the committee’s last meeting.

One of the adjustments discussed was the projected revenue from the rural fire protection program. Letham said the city is planning to change the fee schedule from a flat fee to one that is based on assessed value of the protected structure(s), and that would likely increase the amount of revenue.

He pointed out that the budget reflects a slight increase in the amount that the city pays to the city of Burns for the cemetery, now up to $8,323. When the committee asked why Hines pays that, Mayor Nikki Morgan explained that it is a donation that was decided on between the two cities back in 2005. She stated that, at that time, the Hines council was told that if a donation was made, residents of Hines would get a discount when purchasing cemetery plots.

Former Hines City Administrator Judy Erwin, now a member of the Burns City Council, said Hines residents don’t get a discount.

“The history of it was Burns was going to charge them more if they didn’t make a donation,” Erwin said.

The committee asked Letham to contact the city of Burns and ask why the amount paid by Hines continues to rise.

Letham also told the committee that he increased the budgeted amount for the police department because of rising fuel prices and maintenance of the vehicles, as well as an increased number of calls that the department has received.

The committee will wait to approve the budget until it receives more information on the cemetery issue. The budget committee will meet again on Tuesday, May 28.

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In other business:

• Hines Police Chief Ryan DeLange reported a rise in domestic violence calls, especially on the weekends. He stated that there were several reports of scam calls. Suicidal subject calls have increased, and they are working with Burns Police and Symmetry Care to find solutions.

DeLange also reported that an officer was hired to replace Marc Novak, who is joining Oregon State Police. The new hire will begin work in Hines June 1;

• Hines Fire Chief Bob Spence said his department responded to eight calls in the past month, including four fires and two haz-mat spills. Spence reminded the council that Obsidian Days is coming up June 7-9, and thanked city staff for their help in getting ready for the event;

• Letham said the city will put out two bids soon for street work, and a new person, Jordan Roozeboom, was hired for the maintenance department;

• the council approved a motion to match a donation from the Burns High School Key Club to purchase playground equipment for Hines Park;

• Harney County Chamber of Commerce Executive Director Lola Johnson told the council that she is setting up two movie nights for this summer to be held at Hines Park. The movie nights are being sponsored by Harney District Hospital and Oregon Trail Electric Co-op.

Johnson reviewed a portion of the agreement with the city, which states that 2 percent of the collected transient room tax goes to the chamber.

Johnson also said that the Migratory Bird Festival went well, with 175 attendees and more than 20 tours;

• the council approved a livestock permit for Jon Morgan;

• the council approved three conditional use permits, as recommended by the planning commission.

The next Hines Common Council meeting is scheduled for 6:30 p.m. Tuesday, May 28, at city hall.