Sisters Stations Pay Up on Gas Taxes

(This article originally appeared in the 6/29/10 issue of The Nugget Newspaper)

By Bill Mintiens Sisters gas stations are paying up on the city's new gas tax - but the fight over the tax may not be over. On June 4, Judge Alta Brady ruled that Sisters gas stations owed the City of Sisters the three-cents-per-gallon gas tax for the period of April 9-30. By the May 25 due date only two stations in Sisters had paid their bill - both Shell stations. They sent in payments of approximately $1,100 and $1,200 to the City of Sisters. The four other stations, prior to Judge Brady's ruling, were advised by the Oregon Petroleum Association's attorney, Paul Romain, not to pay the tax until a ruling was made. "I have told them (the local fuel dealers) not to pay it," Romain told The Nugget on May 21. The four stations that had not paid on the May 25 due date accrued penalties for nonpayment. "If dealers do not pay, the penalty is 1 percent of the tax and increases to 10 percent if payment is not received by the end of the month in which payment is due," said Eileen Stein, Sisters city manager. Since the ruling was handed down on June 4, all six dealers have now paid their gas taxes. The Sisters City Council passed an ordinance creating the gas tax back on August 13, 2009 as a means of generating funds to maintain and improve city streets. This was prior to a statewide moratorium on local gas taxes scheduled to take effect after September 28, 2009. For the fiscal year 2010/2011 which starts July 1, 2010 the council budgeted $126,000 in gas tax revenue for city streets. The Oregon Petroleum Association (OPA) took issue with the ordinance passed in August, immediately circulating a petition on behalf of the local gas station owners, getting the issue on the March 2010 ballot as a referendum. OPA's position was that the council's ordinance passed back in August should not be enacted until the people voted on it. And, with a vote not scheduled until March 2010, the ordinance would not be valid because it would be after the moratorium date for new local gas taxes. In the March 2010 ballot, Sisters voters approved the gas tax, paving the way for the city to set the payment schedule. The OPA has the right to appeal Judge Brady's ruling and plans to meet with station owners to discuss a possible appeal. "We are meeting next week regarding an appeal," said Romain. "I believe that the dealers are paying the tax and will get a refund of the tax if they appeal and are successful."

Leads Group Connects Professionals

(This article appeared in the 6/9/10 issue of the Nugget Newspaper)

by Bill Mintiens Kathy Kemper is a busy woman. She's a loan officer with the Arbor Mortgage Group, a member of the Network of Entrepreneurial Women, and mother to an active nine-year-old. Bubbling with energy and enthusiasm, Kemper made time a couple of years ago to get a frisbee golf course funded and erected near Sisters High School. Kathy is also passionate about helping the Sisters business community grow and thrive. About three years ago, having attended Business Network International (BNI) groups in Bend, Kemper decided to start a similar networking group in Sisters. "I found the BNI groups to be very rigid and formal. You have to interview to be part of the group, pay dues, and meet weekly. It just didn't fit my lifestyle," said Kemper. So Kemper started the Sisters Leads Group and recruited Ross Kennedy, a new Realtor at the time, to join. Together they began to "spread the word" to Sisters-area businesses about the value of the group. The Leads group began meeting the first Monday of every month from 5 to 7 p.m. at Aspen Lakes. "From the beginning our rather informal selection process only had one rule - one member per industry. We have about 40 members now representing an insurance company, a Realtor, a direct card marketer, a graphics company, an event planner, a chiropractor, a life coach, a plumber, a green builder, a handyman and many others," said Kemper. There is no membership fee to join. Each month one member has 15-20 minutes to present their business to the other members. The rest of the meeting is comprised of informal networking and socializing. "We do ask the monthly presenter to purchase the snacks for the group but that's the only cost," added Kemper. Kemper sees measurable value to the businesses joining the group. "I've probably brought in $10-15K in revenue for my business since starting this group. Hands-down, everyone in the group has said that their business has increased as a result of joining," said Kemper. With membership growth, Kemper sees a need in the future for a more refined selection process of new members. The current, informal selection process has had a couple of bumpy spots. "I'm considering a selection process that's a little more formal going forward so that we get really good people. I had to ask a couple of people to leave because they were really pushy with their product within the group. I figured if they were pushy with us, that's probably how they were with their clients," said Kemper. Kemper states, "The goal of the Sisters Leads Group is to help Sisters thrive by helping each other grow our businesses wherever possible, either directly or through referrals." Near-term goals include a new Web page, potentially joining the Sisters Chamber as a non-profit, and having a link on the Chamber's Web site. The group already has a Facebook page. For more information about the Sisters Leads Group call Kathy Kemper directly at 541-749-0610 or e-mail kathy@arbormg.com.

City Wins Gas Tax Fight in Court

(This article appears in the 6/8/10 issue of the Nugget Newspaper) Judge Alta Brady ruled last Friday that the City of Sisters' gas tax is legitimate. That means Sisters gas stations owe the City of Sisters the three-cents-per-gallon gas tax for the period of April 9 through April 30, 2010. The due date for their first payment was May 25 but, to date, only two stations in Sisters have paid their bill. Both of the Shell gas stations have paid their bills, sending payments of approximately $1,100 and $1,200 to the City of Sisters. The remainder of the stations, Sisters Pump House (McMeekin Enterprises), Space Age Fuel (Pliska Investments LLC), and the Sisters Mainline Station were advised by the Oregon Petroleum Association's attorney, Paul Romain, not to pay in advance of the pending court date with Judge Brady. "I have told them (the local fuel dealers) not to pay it," Romain told The Nugget on May 21. The stations that have not paid are now accruing a penalty for nonpayment. "If dealers do not pay, the penalty is 1 percent of the tax and increases to 10 percent if payment is not received by the end of the month in which payment is due," said Eileen Stein, Sisters city manager. The Sisters City Council passed an ordinance creating the gas tax back on August 13, 2009, as a means of generating funds to maintain and improve city streets. This was prior to a statewide moratorium on local gas taxes scheduled to take effect after September 28, 2009. The Oregon Petroleum Association (OPA) took issue with the ordinance passed in August, immediately circulating a petition on behalf of the local gas station owners, getting the issue on the March 2010 ballot as a referendum. OPA's position was that the council's ordinance passed back in August should not be enacted until the people voted on it. And, with a vote not scheduled until March 2010, the ordinance would not be valid because it would be after the moratorium date for new local gas taxes. "When does an ordinance get enacted, when the council votes on it or when the people vote on it? I believe it's when the people vote," said Romain. In the March 2010 ballot Sisters voters approved the gas tax, paving the way for the city to set the payment schedule. Judge Brady's ruling confirmed Sisters city attorney Steve Bryant's argument that the city council's action back in August "enacted" the gas tax ordinance - and the March referendum merely placed on hold the effective date of the ordinance. "When the ordinance was successfully referred, i.e. qualified for the ballot, the implementation (collecting the three-cents-per-gallon from the stations) was suspended. After the election we indicated we would implement the ordinance immediately. Legal counsel clarified that would be 30 days after the election date, or April 9," said Stein. Thus the first gas tax collection period of April 9-30, 2010, with payment due May 25. The OPA has the right to appeal Judge Brady's decision but, at press time, there was no indication an appeal was in the works. Phone calls to station owners owing gas taxes were not returned by press time. Council President Bill Merrill feels strongly that a gas tax was the right means of generating the necessary revenue. "We made a decision based on what's best for the people. We are elected to do the people's business and that's what we did," said Merrill. For the fiscal year 2010/2011, which starts July 1, 2010, the council budgeted $126,000 in gas tax revenue for city streets.