Document text
Oregon Road Conditions & Cams Email Story to a Friend November 14, 2005 City’s property tax revenue can’t cover growth expenses By MEG LANDERS Mail Tribune The city of Medford’s property tax revenue is expected to total $23.5 million in 2006, a 39 percent increase over 2000. When Robert Horton received his tax bill this month, he said he wondered why there wasn’t enough money to cover the needs of police and fire departments. "My gosh, I would think they’d have more darned money than they know what to do with," said Horton, who has lived in Medford for 15 years. He will pay $1,665 to the city’s operational fund next year. But city Finance Director Alison Chan said it’s not so simple. "Expenses have grown faster than the revenue," she said. Advertisement In October, police and fire departments told the City Council they need 10 new police positions and 13 new firefighting positions or there would have to be cuts in emergency services. They say the new positions are necessary to serve Medford’s burgeoning population. The city has grown nearly 10 percent since 2000, from 63,387 residents to 69,220 in 2004. Horton said all the new development must be generating more money for the city, and it seems the increased income should cover needed staffing. "The revenues have grown," said Chan. "Our costs have grown, too. That has kept pace." Property taxes are the number one revenue source for the city. The rate is $5.30 per $1,000 of assessed value, or $1,325 on a $250,000 home. Chan said property tax revenue, which totaled $16.9 million in 2000 and is estimated to reach $25 million in 2007, keeps the city at status quo but does nothing for the need for additional personnel to cover growth. For the 2005-2007 biennial budget, the general fund revenue is estimated at$79 million, plus a $14 million carryover from the previous biennium, for a total of $92.7 million. Of that, $48.5 million will come from the two years of property taxes. Other sources include franchise fees, licenses, permits and grants, among other things. The expenses budgeted for the general fund total $82.7 million, with another $10 million set aside for contingency. Of that, $60.9 million covers wages and salaries and all benefits for personnel, the city’s highest cost. Chan said health insurance has increased 20 percent annually since 2000. Since 2001, the city has paid $33 million to reduce its unfunded liability to the Public Employee Retirement System. Chan said some of the departments, such as building safety and public works, generate revenues through fees and grants and do not rely heavily on the general fund. Planning is working toward self-sufficiency with incremental fee increases over several years. Police and fire, however, do not have revenue-generating fees and rely almost entirely on the general fund. Police has a two-year operating budget of $32 million, fire $17.7 million. Human resources and the city attorney’s office also rely completely on the general fund. New funding sources for the police and fire departments could include a voter-approved tax, a new fee on the city utilities bill, a fee on new development or federal grants, among other options. Medford police Chief Eric Mellgren and fire Chief Dave Bierwiler both say it’s time to address service and staffing because population has been increasing but staffing has not, and response times are slowing down. Horton said he wishes the city were more transparent in revenues and expenses, especially if it’s going to be coming to residents asking for approval of fees or levies. "If they’re going to ask for more money, they’ve got to explain how much is needed," he said. The council is expected to discuss the matter further over the next several months, with a proposed solution in early 2006. Reach reporter Meg Landers at 776-4481 or e-mail City�s property tax revenue can�t cover growth expenses ">[email protected] . Tax revenue: The city of Medford’s property tax revenue is expected to total $25 million in 2007, a 47.9 percent increase over 2000. Here is a breakdown of collections per year: 2000 — $16.9 million 2001 — $17.9 million 2002 — $19 million 2003 — $19.8 million 2004 — $20.9 million 2005 — $22.3 million (estimate) 2006 — $23.5 million (estimate) 2007 — $25 million (estimate) Mail Tribune Home | Local News | Sports | Business | Obituaries | Life | Opinion AP News | Archives | Site Map | Community | Classified Copyright © 1997-2005 Mail Tribune, Inc. All rights reserved. Privacy Policy | Terms & Conditions | Website Feedback www.bingo.com Home Security Systems Trunks, Footlocker dvd-r Distance Education Computer Security Ztech Media Hosting Sports Equipment Online Casino Salvia Divinorum Student Loans tcg student loan consolidation Online Pharmacy Online Casino Reviews Myspace Home Equity Loans Windermere Van Vleet Rogue Valley Travel Discount Hotel Reservations Southern Oregon Loans Online Casino News Casino Gambling Sites Budget Website Templates Online Bingo Entertainment Guide Advertisement s