A 5 percent meals tax to fund 40 new police and firefighting positions was recommended by Medford city staff during Thursday's council study session, but critics found the idea tough to swallow.

The local chamber of commerce, the state restaurant association and some council members expressed unease with the proposal.

"We didn't think a meals tax is widely and equitably distributed among the community," said Curt Burrill, chairman of the board of the Chamber of Medford/Jackson County, which recently voted unanimously to oppose the meals tax.

Drew Baily, regional representative for the Oregon Restaurant Association, said after the meeting she didn't think council members were paying enough attention to Grants Pass, where a similar 4.85 percent meals tax was rejected by 78 percent of the voters in May.

Councilman Jason Anderson said he would not support a food and beverage tax.

"I've got some concerns about singling out a single industry," he said.

The council will hold a public forum on the idea at its July 6 meeting.

Medford is looking for ways to fund 30 new police positions over the next six years, as well as 10 new firefighter positions to help keep up with demands of a growing city.

The city also wants to generate $13 million to complete the new Medford Sports and Community Park.

Possible revenue sources identified by staff: the 5 percent meals tax; a property tax of 84 cents per $1,000 of assessed value; a gas tax of 3 cents per gallon; a 6 percent franchise tax for gas, electricity, cable and trash pickup; and a 5 percent or 6 percent tax on cell phone bills. All options except the property tax, which would require a public vote, could be adopted by the council as an ordinance after a public hearing.

A telephone survey of 300 Medford residents, conducted this month by The Thomas Group, shows Medford residents would support a meals tax, said City Manager Mike Dyal. Nearly 68 percent of respondents supported a food and beverage tax, 23 percent would support a cell phone tax and nearly 9 percent would support a gas tax.

The survey asked residents if they would support a property tax of $7 a month (or $84 a year, based on a house of $200,000 assessed value). About 29 percent supported the tax for police protection and 27 percent supported it for fire protection. About 20 percent supported a $3.50 per month property tax for the sports park.

Councilman John Statler asked Fire Chief Dave Bierwiler and Police Chief Eric Mellgren how badly additional staff was needed.

"If we didn't increase funding at which point would we reach crisis?" he asked.

"We are clearly on a downhill road," said Bierwiler, and Mellgren agreed.

"It's a crisis when an individual feels he or she is harmed because we didn't get there in time," said Mellgren. "We're real close to starting to get nervous."

Other council members did not dispute the need for more staffing but questioned how the positions would be funded.

Dyal strongly supported the meals tax.

"I think it's perhaps the fairest tax we have for one reason: It is totally discretionary," he said.

Councilman Jim Kuntz said he avoids eating in Ashland because of its meals tax, and he, like Anderson, is opposed to singling out one industry.

Mayor Gary Wheeler reminded the council that the city already singles out industries with a car rental tax and a hotel/motel lodging tax.

The council also discussed putting a bond measure on the ballot, but Councilman Jim Key said he remembered an election when there were numerous bond measures and they all failed. He reminded the council that the Medford School District is asking voters to approve a $189 million bond in November.

"It's an uphill battle and we should recognize that from the very start," he said.

Though several restaurant owners attended the study session, all who were approached by the Mail Tribune declined comment.

Chamber Chief Executive Officer Brad Hicks said members watched Ashland closely after the 5 percent meals tax was imposed in 1993.

"We thought it was a really negative impact," he said. "Many of them (the Ashland restaurateurs) feel like they took a low blow and never really recovered."

He said the chamber's opposition is "not about where the money goes." He said the chamber would support a property tax or a fee added to the water bill, because the cost would be evenly distributed, and local government would then be funded by its community.

Reach reporter Meg Landers at 776-4481 or e-mail mlanders@mailtribune.com.