Thursday, January 30, 2025

Oregon cities are asking the state to help build infrastructure, update tax, camping rules

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This week, the League of Oregon Cities gathered in Salem to ask lawmakers to boost funding for local water and transportation infrastructure. City leaders also pushed for updated laws around homelessness, and for more flexibility to spend hospitality tax revenues

During Tuesday’s press conference, Bend Mayor Melanie Kebler said her city is trying to address its growing housing crisis, but can’t afford the water and sewer pipes it needs to do so.

“If we can unlock the southeast area, for example, where we have lots of different property owners, none of who can by themselves bear the cost of one big pipe,” she said, “we could create over 1,200 hundred homes and almost over 3,000 jobs.”

According to a recent state housing report, Oregon needs to build 500,000 housing units in the next 20 years to address its shortage.

Kebler said if lawmakers pass a housing package this legislative session, it needs to include enough resources for cities to maintain and build new infrastructure.

Cities also asked lawmakers to reconsider restrictions on lodging taxes. Those laws require cities to spend 70% of the money they collect from hotel, motel and short-term rental housing on tourism promotion.

Toledo Mayor Rod Cross said cities should be able to use all of the funds to pay for the burden tourism places on infrastructure and city services.

Cross said Toledo, and many other cities along the Oregon Coast, struggle to deal with a massive increase in population over the summer.

“The numbers become overwhelming,” Cross said. “Roads wear out a lot faster, water systems are strained.”

The Oregon Coast Visitors Association has raised concerns about changing the tax, arguing in a press release earlier this month that many communities have older, grandfathered tourist taxes that allow them to spend less than 70% of lodging taxes on promoting tourism.

Lawmakers have also called on the state to clarify time, place and manner restrictions on public camping. LOC President and North Bend Mayor Jessica Engelke said a more specific state definition will help local governments avoid costly litigation.

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