NEWBERG, Ore. — During the May 18 City Council meeting, on council request City Manager Will Worthey presented a request for council action, debating whether to refer a $0.03-per-gallon gas tax to voters, potentially placing it on a future ballot. The tax would fund the paving of several miles of gravel road at a total estimated cost of $8 million to $10 million.
After discussion, the council decided against pursuing a gas tax at this time, and will consider alternative funding options at future meetings.
“I think the timing is way off on this,” said Councilor Mike McBride. “I wouldn’t want to do something like this. Maybe a couple years from now if everything’s a little bit better, cheaper, with prices and oil and gas, then I don’t have a problem putting it out to the voter and letting the voter tell us what they want to do.”
Worthey said unpaved gravel roads within the city limits draw $20,000 to $30,000 annually in grading and maintenance costs with limited results. Gravel roads are also a consistent complaint from residents. However, the city’s existing budget cannot accommodate building new roads.
“While we have sufficient revenue to keep up with our road repair program… we do not have sufficient revenue to build entirely new streets in the gravel section of town,” Worthey said. “The revenue we get from other sources, such as state pass-through revenue, is utilized to pay for public works staff and other operating costs, but it does not rise to the level of fixing new streets in the gravel area.”
Worthey said the city has applied for federal transportation grants, but those grants are largely predicated on fatalities, which are not common on gravel roads.
The proposed tax would generate approximately $547,500 annually and terminate upon project completion. Worthey said the revenue would enable paving of a few streets per year, including gravel sections of N. Harrison Street, W. Sheridan Street, and W. Sherman Street.
Should the council decide against a gas tax, Worthey identified alternative funding methods, including a Local Improvement District, federal grants, and adding the project to an urban renewal district.
A Local Improvement District would allow residents directly affected by the paving to fund the project.
“The focus of LIDs is on local, public improvements that have more of a benefit to that immediate area rather than a broader community benefit,” said Community Development Director Scot Siegel. “It’s a financing tool — Bancroft bonds that fund the infrastructure.”
Bancroft bonds are municipal bonds issued by local governments to finance public infrastructure improvements incrementally rather than all at once. Implementing a Local Improvement District would allow Newberg residents who do not use the gravel roads to avoid sharing the cost, leaving it instead to affected property owners.
“I don’t know who all lives on these streets, but the thought of an $8 to $10 million Local Improvement District also feels really terrifying for the people who live on that street,” said Councilor Turgesen. “That is a huge amount of money for a very small number of people to try to absorb.”
“The City of Newberg is never going to find the money to just pave those streets on the city budget,” Mayor Bill Rosacker said. “If they’re going to be done, we’re going to have to use several tools that we’re not currently using.”
Members of the public spoke at the meeting, expressing hesitancy about additional taxes and urging the council to explore other funding methods.
Britta Mansfield, who owns a property on a gravel road in Newberg, spoke from her experience and asked the council to gather more feedback from other residents who would be affected by the paving proposal.
“If I have to choose between a new tax and keeping my gravel road, I will keep my gravel road,” she said.
The council will revisit the topic after significant progress has been made on the River Street project.
Waste Management Budget Review
Waste Management also presented its annual report to the Newberg City Council on May 18. The company serves 6,781 residential and 555 commercial customers and also operates an industrial drop box and medical waste services. Last year, the council approved an 8.6% rate increase that took effect July 1, 2025. The increase covers higher transportation costs, increased labor expenditures, and rising fuel prices.
Waste Management is currently projecting a 6.64% return on revenue and is requesting a 3.76% rate increase to achieve a 10% return. The council will vote on the request June 1, 2026; if approved, the new rate would take effect July 1, 2026.
Right-of-Way and Street Closure Code Amendments
Assistant Planner Jeremiah Cromie presented amendments to Ordinance No. 2026-2944, which the council unanimously adopted. The ordinance provides additional clarification on street closure and parade policies.
Elections Announcement
Newberg’s mayor and three councilors will appear on the general election ballot Nov. 3, 2026. Districts 2, 4, and 6 will elect councilors to serve from Jan. 1, 2027, through Dec. 31, 2030. Filing opens June 3, 2026; the deadline is Aug. 18 for incumbent candidates and Aug. 25 for non-incumbent candidates.
Master Fee Schedule
Resolution 2026-4022 amends the Master Fee Schedule by removing the Communication Officer Public Safety Fee, Grading Permit Fees, Bike Rack Cost Sharing Fee, and Dance Permit Fee. The wastewater fee would also be reduced by 7%, and the Police Public Records Fee would increase from $15 to $20. The council will vote on the resolution June 1, 2026; if approved, it would take effect July 1, 2026.
