Baker City Hall sits in the historic downtown area of Baker City, Ore. in 2023.
Antonio Sierra / OPB
With a mixed record of convincing residents to fully pay for basic services like police and firefighters, Baker City is looking toward tourists to help cover the cost.
At times, the city has struggled to raise money for its core services. A contentious public safety fee contributed to a wave of resignations on the council last year, leading the Baker County Board of Commissioners to appoint a new council after there was no one left to serve. A tax levy that would have raised more than $4.5 million over five years for the police and fire departments was resoundingly rejected by Baker City voters in May.
But new city manager Barry Murphy has an idea for a fresh source of revenue: the city’s tourism industry.
In a Tuesday meeting with the Baker City Council, Murphy told councilors that the city could draw money from its lodging room tax to bolster public safety funds. The main obstacle to that plan, he said, is that the city has directed that money toward Baker County since 2006.
Baker County Commissioner Shane Alderson said that under the current agreement, Baker City and every other town in the county send its tourism tax revenue to the county. In accordance with state law, the county then spends 70% of that money on tourism promotion. Most of the rest is spent on economic development projects, Alderson said.
Murphy argued that the set-up is no longer working for Baker City. In a letter to the county, Murphy wrote that the partnership has “devolved into the County managing the program with minimal input from Baker City.”
Baker City generated 80% of the county’s lodging tax revenue over the past 5-10 years, Murphy wrote, and the county left up to $2 million unspent each year. While sending those dollars to the county, Baker City developed issues paying for its public safety services. Murphy, who didn’t recommend ending the agreement entirely, requested the county redirect 20% of all lodging tax revenue back to Baker City.
“In light of the enduring shortfall, Baker City believes it cannot afford to continue deferring this needed revenue,” he wrote.
The council was mostly receptive to Murphy’s plan, although Councilor Doni Bruland said the city needed to earmark the money specifically for fire and police service because residents were scrutinizing the city’s other expenses, like the municipal golf course.
“I can’t write a blank check,” she said.
Staffing shortages in Baker City have forced the police department to suspend 24-hour service. The fire department was also strained by a lack of staff after dropping ambulance services. While the city had taken steps to reinforce the fire department, the Baker City Herald reported that the department was further jolted when Murphy terminated the Baker City fire chief in March without explanation.
Voters still don’t seem on board with paying more taxes to fund public safety. Nearly two-thirds of Baker City voters rejected the recent public safety levy.
But the city is also making progress in other areas. The same public safety fee that helped tear the last city council apart was implemented this month after a lengthy delay.
Bolstering public safety money further with tourism dollars will rely on negotiations with the county. Alderson, himself a former Baker City councilor, said he wanted to make sure the county was able to maintain the overall structure of the agreement, but he was confident both sides could reach a deal.
