Editor’s Note: the following article is for contextual information. On April 17, council voted 6-1 in favor, directing staff draft a new Police Surcharge Ordinance which will be voted upon at the May 1 council meeting. (Councilor Garcia cast the dissenting vote.) Please see the Review website at that time for an update on the council’s decision on the matter.
At a town hall meeting on March 31 held at Jacksonville Elementary School, 55 residents gathered to hear from staff about funding the police department. Those in attendance included City Administrator Jeff Alvis, Finance Director Stacey Bray, Recorder Angela Watson, Police Chief David Towe and Police Officer Kayla Cutting. Mayor Paul Becker along with City Councilors Brad Bennington, Steve Casaleggio, Criss Garcia, Ken Gregg, David Jesser and Jim Lewis were joined by Budget Committee members Donna Bowen, Mike McClain and Doug Phillips.
The staff presentation was based upon a recent recommendation from the Budget Committee to impose a $20 per household surcharge to shore-up Police Department funding. The Budget Committee is comprised of 7 at-large citizens and all 7 city councilors. The proposed surcharge would be identical to the current fire department fee of $35/month and would appear on the monthly water bill. Likewise, the $20 police surcharge would include a hardship relief program wherein those not able to afford all or part of the fee may apply for a discounted rate. As an example, those with annual incomes of less than $19,999/year may qualify for paying $0; those between $21,000-21,999 would pay $13/month.
Administrator Alvis and Finance Director Bray outlined the city’s current budget situation, citing a projected 2018-19 expense of $688,000 to fund the full-time department. Currently, those operations include 5 full-time officers and a police clerk, offering 24/7 protection. It was pointed out that the cities of Talent and Phoenix employ 8 and 10 officers respectively. Comparatively, Jacksonville’s tax base is calculated at $1.84/$1000 of assessed value while Eagle Point is $2.45/$1000 and Medford is $5.2/$1000.
Alvis noted that 90% of police operational costs are paid from the General Fund, collected via property taxes. With the city’s Streets, Historic Preservation, Cemetery and Parks funds in-need of more funding to maintain current service levels, Alvis and Bray presented facts on the positive impact the surcharge would have on those funds. Alvis stated that many of the city’s streets are aging and that repairs/improvements will be needed going forward. As such, shifting more tax funds into “rainy day” accounts is prudent.
Alvis and Bray noted that a police surcharge would be capped at collecting $400,000 annually. Initially, the term of the program would be 5 years, but the expectation is that the surcharge would be used as a permanent, long-term funding solution, as is the case with the fire surcharge. Unlike a tax levy which expires after 5 years and must be reapproved by voters, the City Council may extend and increase or decrease surcharges without a public vote. Alvis was explicit, saying the fund would be used strictly for police services and not for other city needs. Should the City Council approve a new surcharge, 42% ($285,000) of police funding will come from the General Fund and 58% ($400,000) will then come from the surcharge. The move will then enable the city to bolster its other fund accounts.
Alvis and Bray also presented a funding comparison of a surcharge versus a property tax levy. To match the $20/month surcharge, voters would need to approve a $1/1000 of assessed value as a property tax levy. Placing a tax levy on the ballot is a move the Budget Committee had considered, but has recommended the new surcharge, instead. As has been the case since the inception of the Public Safety Ordinance, which authorized the original fire department surcharge, the program has had its critics. Over the years, some have called the fee “regressive,” “unfair,” and “un-democratic.”
Despite the criticism, it was noted that the police surcharge option had garnered the majority backing of the Budget Committee, which has met 10 times since 2/14/17 to discuss the city’s financial matters. At those meetings, members proposed ideas to raise new revenue including the installation of downtown parking meters and a meals/beverage tax. The meals tax, heavily backed by Budget Committee member Doug Phillips, has been tabled for the time being, based upon the need for stable and easily-collectible funds. It was argued that in the event of a downturn in restaurant business, or if a major restaurant should close its doors, the stability of the police fund would be jeopardized. During public comment, several citizens supported the meals tax, offering comments that suggested “visitors” should pay their “fair share” of public safety costs. City staff was quick to point out that although a meals tax could be a source of funding, at this time, the $20 surcharge was the best choice.
During further public comment, Police Chief David Towe responded to a question about contracting-out for police services. The chief answered that the discussion had taken place several times in the last few years. However, he added that the Jackson County Sheriff’s Department offers contracted officers at a cost of $169,000/year, in excess of what Jacksonville currently pays for a full-time officer position. While his officers would benefit financially, in the end, Towe didn’t think the city could afford a contractual program.
At the conclusion of the meeting, Administrator Alvis and Finance Director Bray remarked that the police surcharge will be on the agenda at an upcoming City Council meeting. Should the council vote to impose the $20 surcharge, residents will see the new charge on their water bills as soon as July 1, 2018.