Americans can appreciate the zeal of throwing off the yoke of a distant government in favor of local rule.  So, the interest in incorporating into a city is understandable.   But the zeal should not overshadow nor distract from thoughtful consideration about the burden of incorporating and running a city.

The below questions are primarily targeted at Arch Cape’s current residents and property holders, though question 1, 2 & 4 might apply equally as well to Falcon Cove and Arcadia.

1. Is an Arch Cape City financially viable and at a price you are willing to pay?
2. Is greater government control in our lives worth a higher tax rate?
3. Will the current standards for Water & Sewer be continued?
4. Who will lead the city once the novelty wears off?

1. Is an Arch Cape City financially viable and at a price you are willing to pay?

On Friday August 8, the Incorporation Steering Committee presented to the public a proposed set of services for a new, to-be-incorporated city <click here>.  The majority of these services are required of a city by state statute.  As yet, except for the costs of Land Use Planning that are estimated at $300,000 – $500,000, no cost estimates have been presented.   But it is likely that this set of services will be more expensive than what we pay the County.  As an example, what might be the costs for a Municipal Court with a judge, bailiff etc. – which is only one of the Legal Services listed on page 1, slide 2?

Even without detail cost estimates, it is reasonable to believe that the tax rate that we currently pay to the county for a small subset of these services PLUS the transient use tax (paid to the county by short term rentors) will fall short of covering the costs of all of these newly proposed services.    We await those cost estimates, revenue projections and proposed tax rate from the Steering Committee.

NOTE:  If you are looking towards incorporation to eliminate short term rentals, the transient lodging tax (TLT) for these rentals continues to be factored into the Steering Committee’s proposal (page 6) in order to make incorporation even close to financially viable.  So, it appears unlikely that short term rentals will go away or even be significantly reduced.

From a pragmatic perspective, the available and affordable work force on the north coast has been disappearing.  As an example, the Water/Sanitary Districts, Cannon Beach and Seaside Public Works are having difficulty in finding qualified, or even semi qualified, staff to fill open positions that have good compensation packages.   So even if there is appetite to pay an increased tax rate for the expenses of an incorporated city, finding qualified and affordable staff to run the city may be difficult. 

2. Is greater government control in our lives worth a higher tax rate?

Except for land use, Clatsop County has been pretty hands-off (which is obvious if you look around).  It is clear from Friday’s presentation that some residents would have liked the County to have been more attentive and sensitive to their requests.   Other residents see that the County’s hands-off approach has contributed to Arch Cape’s character, which is why they like living here.  Other residents are indifferent.

With incorporation, city government will become much more hands-on than the County ever was.  With more government comes more laws over all sorts of things and a legal system to enforce them.  As examples, click on the city names that follow to see the number of type of city ordinances for Manzanita and Cannon Beach – ranging from comprehensive plan & municipal codes, to dog walking, driveways & parking, etc.   Even more specifically, slide 2 on page 5 of the Steering Committee’s proposed set of city services provides the flavor for other non-state required functions being considered. 

Bottom line, a city would bring an increased level of government involvement and control in our lives and a higher tax rate to pay for that involvement.

3. Will the current standards for Water & Sewer be continued?

Water and Sewer services to the residents of Arch Cape are currently provided as Special Districts.  By state statute <<click here>>, upon incorporation into a city all Special Districts that fall entirely within that city boundary are dissolved, unless the incorporation petition specifically proposes the continuation of these Districts.  And even if the incorporation petition is to continue the Special Districts, they can still be dissolved after incorporation by getting a majority approval from the then residents of the city.

The residents of the Arch Cape Water and Sanitary Special Districts elect board members to ensure that water and sewer services are efficiently and cost-effectively delivered to the rate payers that live within the District boundaries.  If the Special Districts were dissolved, before or after incorporation, the city council and mayor of the city would make decision about the water and sewer services.  Their decisions would consider the interests and needs of all tax payers of the city – Falcon Cove, Arch Cape and Arcadia, rather than just the interests and needs of the current Arch Cape Districts rate payers.  Under city control, the risks for current Arch Cape residents to consider are:

1. Standard of service – Arch Cape Water and Sanitary District residents and rate payers have purchased property in the Districts assuming a specific level of service,  which is also a factor in assessing property values.  Residents and rate payers look to the Boards of the Water and Sewer Special Districts to establish policies, operations/ maintenance standards and a corresponding rate/ fee structure that protect their property values and are all tailored to their specific interest and needs.  A City on the other hand is likely to set policy, standards and rates considering the interest/ needs of all tax payers of the city which, given the increased population and the variation in geography, will be fundamentally different than interest/ needs of the current Districts.
2. Water availability –   The water for the Arch Cape Water District comes from two creeks flowing out of the hills to the east.  The capacity of these creeks and the District’s processing plant are anticipated to be sufficient for the current rate payers along with the expected population increases within the boundaries of the District.  The source of water for Falcon Cove and Arcadia are wells/ springs, which have run dry or precariously low with seasonal fluctuations.  If water were to become controlled by the City, the creek water could be distributed across the entire city – Falcon Cove, Arch Cape and Arcadia – which puts the available capacity of water for current and future Arch Cape District residents at risk.
3. Arch Cape Watershed-Forest protection –  The Arch Cape Watershed-Forest was purchased to enhance/ protect the creek’s drinking water for District residents.  For that reason, the District Board put policies in place to limit public access to the area and to use logging only as necessary to pay for the ongoing operations of the Watershed-Forest.   If the  Watershed-Forest were to be controlled by the city, the Watershed-Forest could be opened as a City Park and logging could be used to make up any revenue shortfalls of the city, similar to what is done by Nehalem and Manzanita.   Also of note, the title to the Forest-Watershed requires Oregon Department of Forestry (ODF) approval of any transfer of title.

4. Who will lead the city once the novelty wears off?

Arch Cape, with more than 60% of the population over 65, is an aging community that continues to be most attractive to retirees.  20% of the population is under 18.  The remaining 20% is between the ages of 20-65, and that segment is projected to decrease due to cost of living in the area.  A new city is projected to have 250-300 residents with approximately the same age characteristics.  With this demographic, how many residents, now AND into the future, are likely to be qualified, interested and available to function as city council members and mayor?

Members of the Incorporation Steering Committee are rapidly approaching, if not already over, age 65.  Of those Steering Committee members that are residents and therefore eligible for city positions, there is little experience in operating a public sector entity, even the size of the water and sewer districts.  Given the excitement associated with a new city, there may be enthusiasm across this steering committee to gain public city office.  However, natural aging forces will cause attrition and candidates will be fewer and harder to find, especially qualified ones.   A relevant example is the long standing and ongoing difficulty in finding 5 residents to fill positions on the Water Board, and those positions are less demanding than city leadership.

The formation of a city is a one time, novel event, whereas the demands of operating a city are perpetual.  It may not be realistic to believe that 5 interested and qualified people in this small, aging demographic area will continue to rise to the occasion to meet those demands?

Conclusion

Throwing off the yoke of Clatsop County may have an appeal. But the above four questions warrant consideration before strapping on the yoke of city government which, even if it is financially viable, will come with a higher price tag, more control over the experience, look & feel of living in this community and will not bring an end to short term rentals.