Jacksonville Review – July 2026 Issue

EDITOR’S NOTE: The following is an excerpt from the annual City Budget Letter…a full-length version and the entirety of the adopted budget may be found on the city website.

Mayor Donna Bowen, Councilors, Members of the Budget Committee, and Citizens of Jacksonville:

As we conclude Fiscal Year (FY) 2025-2026, we are submitting the proposed budget for FY 2026-2027.

FY 2025-2026 presented several challenges, most notably the conclusion of intensive union negotiations. As such, you will see significant increases in Personnel Services beginning in FY 2026-2027. As Jacksonville wages have historically trailed those of comparable cities, the City has taken proactive step to bring wages up to comparable amounts, while ensuring the adjustments remain within the confines of our bottom line.

Here are some comments on some general trends in the finances of the City:

Revenues—We do not anticipate any significant new types of revenue in FY 2026-2027. Revenues in the General Fund are expected to remain essentially flat. We expect an increase of about 3% in property taxes based on anticipated increases in assessed value. State Shared Revenues, such as OLCC Tax and Highway Tax, are estimated to decrease slightly. In the Water fund, revenue will increase per the ordinance in 2017, which raises the base water rate by $1 each year, in July. In addition, the water rates have increased by 20% due to an increase to the City from Medford Water Commission.

Personnel Expenses—The Collective Bargaining Agreement (CBA) was finally ratified for 2025-2028, with significant increases. Staff and City Council worked very hard to bring our employees’ wages up to market standards.

As a direct result of these adjustments, all personnel costs, including payroll taxes, PERS, etc. have increased proportionally. Additionally, health insurance premiums will be increased significantly in FY 2026-27, while workers compensation rates are expected to increase slightly. Finally, PERS rates increased by about 6% on July 1, 2025, based on the PERS Actuarial.

Utilizing grant funding, we have continued to budget for temporary firefighters during the summer months.

Materials & Services—Materials and services budget amounts have increased slightly in most funds.

Contract Services for the Planning Department remain unchanged as we continue to address several state-mandated updates. Funding for the Buildable Lands Inventory and Urban Growth Boundary analysis remains steady as we advance through technical analysis with our consultants. Notably, the Planning Department successfully secured a $100,000 grant to fully support the technical analysis required for the Buildable Lands Inventory and Housing Capacity Analysis, though it does not cover the Economic Opportunities Analysis.

Tourism Activities—Transient Lodging Tax revenue saw another modest increase this fiscal year. As such, we have applied a conservative upward adjustment to the budget for the upcoming fiscal year.

With the passing of House Bill 4148, which relates to how transient lodging tax revenues are spent, City Council will be discussing potential changes to the disposition of transient lodging tax revenue.

Public Safety—Because the costs of providing public safety services are such a significant part of the budget, they continue to be the City’s primary financial challenge. This budget has been prepared to maintain current levels of service, ensuring the continued operation of full-time police and fire departments. The Fire Protection Surcharge will increase by $2 per month in FY 2026-2027 per Ordinance No. O2025-002. The Police Protection Surcharge remains at $35.00 per month per unit, as established by Ordinance No. O2023-003. While recruitment has been successful, the current surcharge amount does not sustain the Police Department’s requirements over the long term.

Conclusion—We would like to thank the department heads for their excellent efforts managing their respective budgets. We also want to thank the many volunteers who selflessly commit their time as City Councilors, in citizen committees, and individuals that serve the city so well. Finally, we want to thank each Budget Committee member for the time you will spend understanding, shaping, and ultimately adopting this budget.

Respectfully Submitted,

Jeff Alvis, City Administrator and Stacey Bray,

Asst. City Administrator / Finance Director