Cannon Beach voters will see two competing measures regarding voter approval for city-incurred debts on the May 20 ballot.

The vote will come a year after the city was sued by a motel operator, with the backing of a political action committee called Cannon Beach Together, for approving $33.6 million in bond financing for the construction of a new city hall and police station and renovation of the former elementary school without a vote from the public.

The lawsuit was initially dismissed by a Clatsop County Circuit Court judge but was appealed by the motel operator before being settled on the condition that the city hold a binding advisory vote to approve the financing of one of the projects. Though the city hall and police station projects were approved, the vote for financing the renovation of the elementary school failed, and residents remain divided on the issue.

Members of Cannon Beach Together maintained that they should have the right to vote on what they consider to be a revenue bond, but the city argued that the bonds used for the capital projects were instead a full faith and credit obligation bond, and therefore not subject to a public vote.

Revenue bonds are repaid by the income generated by the project they finance, while a full faith and credit obligation means the city is required to use all legally available resources to repay the debt.

Ballot measure 4-235 was introduced by residents Robin Risley, Samuel Block and Allan Barber. It poses the question, “Shall Cannon Beach amend its Charter to require a public vote to incur certain debts?”

If approved, the measure would amend the charter to create a debt approval level — 50% of the government activity revenues in the past year — and require a public vote on all nonemergency debts, bonds or financing agreements over that level.

The city expressed concerns over the ballot measure, citing ambiguous language and potential unintended consequences.

City Attorney Ashley Driscoll said if the ballot measure is enacted, it may require the city to submit all potential debts to voters regardless of the amount or type of project.

In response, the city drafted and approved a competing ballot measure 4-236. The measure asks “Shall Cannon Beach amend its charter to clarify voter approval requirements for incurring debt?”

The city issues debt, usually by selling bonds, to complete various projects. Measure 4-236 would clarify when the council may approve debt without voter approval, and would require the city to obtain voter approval before issuing general obligation bonds that increase property taxes.

“This measure seeks to provide clarity to safeguard the City’s ability to fund municipal projects without increased costs and delays,” the measure summary reads.