Baker City proposes halving public safety fee on utility bills

A Baker City household on water-sewer service would save $5 a month if the city cuts its public safety fee in half, reducing the residential charge from $10 to $5 and the commercial fee from $20 to $10. The move would ease utility bills, but it would also pull back money that has been earmarked for police and fire costs.

The Baker City Council will consider the proposal during its regular session Tuesday, April 14, as part of the annual fee resolution. Staff is recommending the lower rate after the city restored the public safety fee in 2024 to help stabilize the general fund and keep public safety spending from squeezing the rest of the budget.

The fee has been one of the city’s most politically sensitive revenue tools. Baker City first imposed a higher version in 2023, charging $15 a month for residential accounts and $50 for commercial accounts. The council suspended it in November 2023 after a wave of resignations left city government in turmoil, then brought back a smaller version the following spring. The May 14, 2024 final reading set the fee at $10 for homes and $20 for businesses, effective June 1, 2024.

At the time, City Manager Barry Murphy estimated the fee would generate about $750,000 a year, while also projecting a general-fund shortfall of about $900,000 for the fiscal year beginning July 1, 2024. The ordinance said every dollar from the fee would go only to public safety department expenses, and the city said undeveloped properties would not be charged.

The practical tradeoff is clear. A March 2024 report put police and fire at about 57% of the city’s general fund, which means any reduction in dedicated revenue can ripple quickly through staffing, equipment, and response capacity. Baker City terminated ambulance operations effective October 1, 2022, adding to the pressure on the remaining public safety budget.

The city was already looking for other money in 2024, including a five-year property tax levy and a possible franchise fee increase from 5% to 7%. Murphy said if voters approved the levy, the council likely would reduce both the levy and the public safety fee, since the city would not need the full amount of both to balance the general fund.

Resolution No. 3964, adopted April 23, 2024, set the broader 2024-25 fee schedule and applied it to fees billed after July 1. Tuesday’s vote will show whether councilors think Baker City can keep that balance while giving water-sewer customers a smaller monthly bill.