More on the Cherriots Bond

Frequently Asked Questions About the Cherriots Proposed Tax Levy
Ballot Measure Number 24-247
November 2008

Why is Cherriots proposing this tax levy?

Rising fuel costs, increases in CherryLift use (a service required by federal law), and overall inflation have brought Cherriots to a point where next year Cherriots expenses will exceed revenues by over $3 million, if Cherriots provides the same level of service.

What new services would be funded?

In addition to maintaining the current number of service hours, current routes may be changed to increase efficiency. More buses will be added to overcrowded routes so that they can run more often. This change will give people more travel options while helping with overcrowding. Passage of the levy will allow Cherriots to provide citizens with approximately the same level of service that they had before the 2006 service cuts.

What will happen if the measure does not pass?

If the levy does not pass, Saturday service will be eliminated. In addition, 3 – 4 weekday routes may also be eliminated. The result of the elimination of service and program reductions will be the loss of 15 – 20 jobs.

What about Sunday Service?

Sunday service is not planned as a part of this levy. The cost to add Sunday service is very high. In addition to operating the buses, adding a day of service requires additional maintenance staff, supervisors, CherryLift expenses, and utility costs when the buildings are occupied. This makes Sunday service less productive than adding more buses to routes that are overcrowded during the week.

What’s a tax levy?

A tax levy is a temporary property tax providing revenue needed to operate services provided by local governments. A levy is different than a bond. Bonds are used to fund capital projects such as streets, or the construction of a new building. The maximum time allowed for a tax levy to be in place is five years. Cherriots is seeking a five year levy which will be used for operating costs.

Why didn’t it pass last time?

In May of 2006 the voters approved the levy. However, less than half of the registered voters in Marion and Polk counties voted causing the levy to fail under Oregon’s double majority law. In November of 2006 the levy was narrowly defeated by 1,197 votes out of 70,343 ballots turned in.

Why can’t Cherriots just raise fares to pay for extra costs?

In order to replace the revenue shortage of $3.2 million Cherriots would need to raise the fares by 143%. This would increase the price of the regular adult monthly pass from $35 to $85. When prices rise by this much people stop riding the bus and less revenue is received. This defeats the purpose of gaining more revenue by raising fares. Cherriots cannot maintain the current level of service without $3.2 million in new revenue.

Why are you building a station in Keizer if you need more money for basic routes?

Construction projects and bus purchases are made with funds that are not allowed to be used for operations. These are funded through federal and state grants specifically set aside for these types of projects. The transit center will also help improve service to residents and businesses while not needing to increase the number of buses and drivers. The center will allow Cherriots to provide more services to Keizer residents.

Will you raise the fares again if the tax doesn’t pass?

Fares will probably increase again sometime in the future. Current Board policy requires Cherriots to evaluate fares every two years. Under this policy a fare increase was approved in July of 2008 to address inflation.

Is Cherriots asking for the same amount as in 2006?

No, in both May and November of 2006 the amount requested was 60 cents per one thousand dollars of assessed property value. In this election Cherriots is proposing a rate of 49 cents per one thousand dollars of assessed property value.

What is meant by assessed value?

Oregon’s property tax limitation laws create a value that is lower than what a house would sell for that is used to determine how much property tax is collected from property owners. This is known as the assessed value. In the Salem-Keizer area the average assessed value is approximately 47% of the current amount a home would sell for in today’s market. What this means is a home selling for $275,000 would pay taxes based on approximately $130,000 assessed value. Under the proposed levy a home of this value would pay $5.31 per month.

How can I get involved in the election to get it passed, i.e. a yard sign, going door to door, contribute financially, etc.?

To be involved in the campaign please contact the campaign at
yesforcherriots@gmail.com or (503) 581-8384.

How can I get a ballot?

If you are a registered voter and have not moved since the last time you voted, a ballot will be mailed to your home.

Information on voter registration is available at:

Marion County Elections Office or call (503) 588-5041; and

Polk County Elections Office or call (503) 623-9217.