At the June 1 City Council meeting, the 2021-2022 fiscal year city budget was adopted. The following summation was excerpted from the Budget Message provided by staff to council prior to budget deliberations.
We have had some budgetary impacts from the COVID-19 Pandemic; however, the City’s fiscal prudence of previous years has prepared us for impacts such as this. With the American Rescue Plan signed into law on March 11, 2021, Cities in Oregon will be receiving funding for lost revenue, which has been budgeted in the General Fund. We have taken into account potential decreased revenue from State Shared Revenues, such as OLCC Tax and Highway Tax and on a local level in Transient Lodging Taxes and (Britt) Admission Tax.
This year’s proposed budget started with review of the financial analysis for all departments as well as three-year projections. Mayor Bowen and the Council kicked off 2021 discussing Council Goals and implemented a Council Work Session at the second meeting of each month. During the Work Sessions, Council is working through various identified goals, such as a Comprehensive Safety Plan focusing on wildfires. In the fiscal year 2021-2022 budget, staff added a budget item in the Parks Fund for annual fuel reduction. Fuel reduction in Jacksonville will be an important facet of wildfire safety.
Salaries for personnel are reflected in the budget with a CPI-U increase of 2%, per the bargaining agreement. The Personnel Committee has been working to bring Department Head salaries to management level; and as such salaries for Department Heads are reflected in the budget with a 6% increase. PERS rates are increasing based on the actuarial, for the period of July 2021-2024.
General Fund:
We will continue to carry a budget item for Contract Services through RVCOG as a resource to the Planning Department as we continue to work through the revisions to the Comprehensive Plan and Land Use Codes through the CCI. As staff has stated before, the General Fund is the only Fund within the City Budget that can support other Funds; and the main source of revenue for the General Fund is property taxes. We are continuing the transfers to other funds to help supplement operations and have increased the transfer to the Parks Fund to help with the decreased Transient Lodging Taxes and Admission Tax due to the COVID-19 Pandemic.
The General Fund will be doing a transfer to the Capital Projects Fund for an inter-fund loan for the Fire Hall Renovation. This inter-fund loan will be repaid by Urban Renewal.
Fire Protection Fund:
The budget continues to reflect the $35 surcharge. While sustaining the fund, it is not building capital for the future. The General Fund will again transfer $50,000 to the Fire Protection Fund. Fire Chief Painter has been successful in obtaining several grants which will be utilized to offset budget expenditures. Although the fire department budget is sustainable this year, the $35 surcharge will not be sufficient in the near future. The Budget Committee will need to begin steps to ensure its stability.
The city has been awarded a Seismic Grant to be utilized for renovation of the Fire Hall. The Fire Hall renovation is budgeted in the Capital Projects Fund and is funded through Urban Renewal Funds and the Seismic Grant; none of the funding for the renovation is out of the Fire Protection Surcharge.
Police Protection Fund:
The Police Protection Fund was established in the fiscal year 2018-2019 budget. This current fiscal year we are seeing the surcharge revenue begin to come in line with budget and anticipate with carry over to the beginning fund balance we will see the unappropriated ending fund balance come in line as well. We also established and widely publicized a Surcharge Relief Program, which many more of our citizens have utilized than we anticipated.
The General Fund transfer was increased last fiscal year and remains at $300,000 for fiscal year 2021-2022.
Cemetery Fund:
Overall, the Cemetery Fund is holding its own and with the help of the Friends of the Jacksonville Cemetery continues to improve in maintenance and in making the Cemetery more citizen-friendly.
Street Fund:
The City anticipates doing major street work this fiscal year. It was planned for fiscal year 2020-2021, however it was difficult to accomplish with the COVID-19 Pandemic.
Water Fund:
The City has nearly completed the projects identified in the Water Master Plan, through the Safe Drinking Water Revolving Loan Fund. The payment on this loan will begin in fiscal year 2021-2022 and will be approximately $85,000 per year. The City has also submitted a Letter of Interest to the Safe Drinking Water Revolving Loan Fund for funding and grant opportunities for Britt Reservoir #1 and Reconfiguration of a Water Main and Water Service. Per the ordinance in 2017, the base water rate will be increased by $1 each year, in July. We continue building capital in reserves for other major projects identified in the Water Master Plan.
Parks & Visitor Services Fund:
The transfer from the General Fund is being increased to $125,000 in fiscal year 2021-2022 to help with the impact of decreased Admission Tax and Transient Lodging Tax revenue due to the COVID-19 Pandemic.
Admissions Tax comes primarily from Britt Festivals, which was not able to have a 2020 season due to the COVID-19 Pandemic; and has significantly altered their schedule for the 2021 season. Per Resolution, Admissions Tax for Britt is capped at $70,000 and we have been receiving well over this amount the last several years. We budgeted $10,000 for fiscal year 2020-2021 and with no season, there was no revenue. We are budgeting $15,000 for fiscal year 2021-2022 based on the anticipated altered schedule for the 2021 season.
Transient Lodging Taxes has also been impacted. Per Jacksonville Municipal Code this revenue is used to fund Transient Lodging Tax Grants as well as the Visitors Information Center. We will be closely monitoring this revenue in fiscal year 2021-2022 and funding the grants and Visitors Information Center based on the actual revenue.
A budget item for annual fuel reduction has been added to the fiscal year 2021-2022 budget.
Capital Project Fund:
This Fund will continue to be utilized for ongoing projects that have been designated. The 2nd floor of the courthouse is near completion, and we are beginning the Fire Hall Renovation which is being funded through a Seismic Grant and inter-fund Loan from the General Fund, which will be paid back by Urban Renewal in fiscal year 2021-2022.
Urban Renewal Fund:
The tax increment revenues continue to build significantly. The Fire Hall Renovation is the current project utilizing Urban Renewal Funds. We will begin to work with Council this coming fiscal year to identify potential projects as well as steps we may need to take in the future as we reach our maximum indebtedness.