The controversial meals tax plan for Medford is dead after the City Council decided to consider other sources to fund 40 new police and fire positions.

The council left open options for a property tax, a monthly utility fee or a cell phone tax to fund the expansion of public safety services.

The decision Thursday came after several restaurant owners, the Chamber of Medford/Jackson County and the Oregon Restaurant Association spoke in opposition to a meals tax during the council meeting.

John Larkin, owner of Roxy Ann Lanes, said a third of his clientele is senior citizens on fixed incomes, and a meals tax is unfair. "Twenty-five cents is a big deal" to those customers, he said. "There's got to be a better way to just spread this out."

In June the council recommended pursuing a 5 percent meals tax to fund 40 new police and firefighting positions. But following an outcry from restaurateurs, the council shifted Thursday to consider:

• a fee on the city utility bill, ranging from $4 to $10 per month for residents and $20 to $80 per month for commercial users;
• a property tax of 84 cents per $1,000 of assessed property value;
• a 5 percent or 6 percent tax on cell phone bills.

The utility bill fee and cell phone tax could be adopted by the council following a public hearing, while the property tax would have to go before Medford voters.

Medford is looking for ways to fund 30 new police positions over the next six years and 10 new firefighter positions to help keep up with demands of a growing city. For example, in 2000 it took police three minutes to respond to a violent crime, and now it takes on average 9.54 minutes, according to Police Chief Eric Mellgren, who said the delay is caused by staffing shortages.

Though several council members supported a property tax, there was concern it was too late in the game for a November vote.

"At this point, putting something on a ballot is crazy," said Councilwoman Claudette Moore, adding that she'd like to hear more about the utility fee and the cell phone tax. "The food tax and the gas tax I'm not crazy about."

Councilman Bob Strosser said the city is going to have to do something about funding police and fire, and the city needs to find a reliable funding source.

"My first option is the utility bill surcharge," Strosser said.

Mayor Gary Wheeler said the council needs to decide by a July 20 council meeting in order to meet the Sept. 7 filing deadline to put a measure on the ballot.

The council will discuss the tax options at its July 13 study session, to be held in Room 151, Lausmann Annex, 200 S. Ivy St., Medford.

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