Most importantly, it proposes altering and adding bus routes to accommodate passengers on WES commuter rail.

In order to make these changes to the bus system, which will require five new transit employees, and pay for Wilsonville’s share of commuter rail operating expenses, city staff has recommended a more than 50 percent increase in transit taxes, from 0.33 percent to 0.5 percent.

Transit tax is paid by local businesses based on their payroll. Revenues go into the city’s transit fund.

For fiscal year 2007-2008, the city will receive an estimated $2.7 million from payroll taxes. That amount will increase to approximately $3.9 million after the proposed transit tax increase, according to Wilsonville’s proposed budget.

City councilors are still wrestling with the tax increase. Everyone agrees an increase is needed in one form or another. The issue is, how much?

The proposed increase of 0.17 percent can be broken down into the following areas:

• Shared commuter rail operating expenses would take 0.03 percent, or $300,000;

• Commuter rail route changes would take approximately 0.05 percent, or $450,000;

• Fleet services expenses would take approximately 0.04 percent, or $350,000;

• Match money for grants that pay for the purchase of new buses would take 0.02 percent, or $200,000;

• Match money for grants to pay for construction of new maintenance facility, and eventually for a new SMART headquarters, at the commuter rail station would take 0.02 percent, or $200,000;

• And $100,000, or 0.01 percent, would go into reserves.

COUNCIL UNDECIDED

For the several hundred businesses with gross wages of $500,000 or less, the potential tax increase will be, on average, no more than $500 per year, according to data compiled by the city.

But for the two largest corporations in town, the impact is $246,000 per year on average. They would pay approximately $725,000 per year in transit tax.

Wilsonville officials have been meeting with these business leaders and members of the Chamber of Commerce to discuss the increase. So far the reaction has been mixed.

The proposed tax increase is coming at a time when federal grant money for transit service is becoming harder and harder to obtain, according to city officials, especially for operating funds.

“Grant funds are declining,” said Transit Director Cynthia Thompson. “It is not looking great out there, especially for earmarks.”

Officials discussed the need for replacing aging diesel buses from 1979 and 1980 in the fleet.

“Our investment in buses is very poor,” said City Manager Arlene Loble.

The city used to get grants for buying buses that required only a 20 percent match.

“The federal government said loud and clear that those days are over,” Loble said. “There are no more 80 percent grants.”

City Council President Alan Kirk stated the tax increase was too high and believed the city should seek efficiencies to lower the impact on businesses.

“I think commuter rail is great,” Kirk said. “But I think there are areas we could save so we don’t need such a high increase.”

He mentioned ridership numbers that he said showed some buses going out of the city were mostly empty, some carrying as few as two passengers.

Kirk also mentioned the high cost of dial-a-ride service, especially when it is out of the city, and the fact that half of the riders come from senior facilities.

“We are providing a service that they should provide,” he said.

Other councilors questioned whether efficiencies would save enough to make much difference on required revenues.

They were also concerned that some cuts or further fee increases could result in even less grant revenue due to declining ridership.

“It is very easy to be a penny wise and a pound foolish,” said Mayor Charlotte Lehan.

Councilor Michelle Ripple said Wilsonville businesses are getting a good deal.

“The bottom line is we will have a lower rate than TriMet with better service for Wilsonville,” she said.

Businesses in TriMet’s jurisdiction pay twice as much in payroll tax, 0.66 percent, and much more than Wilsonville businesses will pay even if the proposed increase moves forward.

POTENTIAL ROUTE CHANGES

Time is ticking. A decision about payroll taxes and approval of the Transit Master Plan will have to be made soon.

Commuter rail service is scheduled to begin on Oct. 12.

If the region’s experiment in suburban to suburban rail travel is going to be successful, commuters arriving in Wilsonville by WES must get to work in a timely and hassle-free manner.

The city is proposing to redo SMART bus routes in order to meet the train and transfer passengers to their place of employment within 15 minutes.

Those who work close to the commuter rail station would arrive sooner.

Direct vanpool service may be provided to larger employers who wish to partner with the city. There may also be ample bicycle parking for those who wish to bike to work.