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Home My WebLink About2025-12-01 Council Retreat MIN ASHLAND CITY COUNCIL RETREAT MINUTES Monday,December 1,2025 Mayor Graham called the meeting to order at 1:00 p.m. Council Present: Mayor Graham, Councilors Bloom, Dahle, DuQuenne, Hansen, Kaplan, and Sherrell. Council Absent: none Staff Present: Sabrina Cotta City Manager Alissa Kolodzinski City Recorder Bryn Morrison Interim Finance Director Molly Taylor HR Director I. Call to Order II. Reports and Presentations a. City Finance 101 (No discussion. Information in agenda packet.) b. General Fund Forecasting and Discussion Morrison provided a presentation (see attached) and data regarding the city's revenue and expenses. Discussion consisted of factors affecting the city's finances including the impact of COVID-19 relief funds, property tax collections,and changes in cost allocation plans for internal services. Questions were raised about the effects of utility delinquency and the historical trends in revenue and expenses. Clarification was provided on the city's financial policies and forecasting, particularly regarding the general fund and internal service charges.The city is working to better align revenues with expenditures by adjusting cost allocation methodologies and fees over time. A review of the composition of the finance department's staff was conducted, emphasizing the importance of having an accountant,and conducting regular budget reviews to address emerging issues proactively. Revenue and expenditure projections were outlined, including details on grants, capital improvements,and staffing levels. Revenue projections were analyzed including property taxes and other revenue sources, and worst- case scenarios for the city's financial outlook.The potential formation of a fire district as a cost-saving measure was raised along with a request for further analysis of fire and ambulance data to be presented to the council in early spring. Discussion also included the city's wildfire fund and related planned projects. The city's health insurance history was summarized noting that the City remains fully insured through CIS after prior attempts at self-insurance. Creation of a separate Building fund was proposed to separate building safety-related services from the general fund,with a minimum fund balance of 15%. Forecasting for the general fund revenues and City Council Study Session December 1,2025 Page 1 of 4 r expenditures through 2031 was presented, highlighting projected PERS rate changes,equipment replacement,and staffing considerations. c. Reserve Fund Goal and Discussion Council discussed the city's reserve fund, currently at $1.9 million, and staff's recommendation to build up to a three-month operating reserve of $8.5-9 million in the general fund. Staff proposed allocating funds to reserves in future biennium,which would require reductions in other budget areas. Concerns were expressed about maintaining the current minimum fund balance policy of 16.67% ($7 million) and the implications of drawing balances down. Council will revisit the reserve policy, including the minimum fund balance target,with a detailed discussion planned for the second quarter of 2026. Councilors discussed strategies for increasing reserves,such as new revenue sources, service reductions, and policy changes, and asked staff to provide projections illustrating different pathways and timelines for reaching reserve targets. d. Review of Previous and Current Cost Cutting Measures, Operational Changes & Timeline Staff detailed recent cost-saving actions, including position eliminations, budget reductions, and transitions to digital services. Updates were provided on the implementation of new payroll and utility billing software, along with the need for ongoing service-level evaluations and monitoring overtime. Staff also presented options for consolidating or divesting city-owned facilities and discussed fire staffing levels and potential adjustments to the ambulance service area. Questions were raised about the timing of strategic planning relative to budget decisions and explored whether financial planning should inform strategic priorities. Staff noted that the strategic planning process will begin in January,alongside budget conversations,with key decisions needed by September. Council discussed financial stabilization and expense reduction strategies.Council will review discretionary spending across departments with a focus on whole programs rather than individual line items. Department Heads will identify potential program cuts and cost recovery options. Parks and Recreation Department programming will be discussed at the next joint meeting with the Parks Commission in January. Potential cost savings across city operations were discussed, including a review of GIS, police,fire, and IT department infrastructure. Staff explained that cloud hosting requires significant upfront costs but is moving in that direction. Staffing levels of the City Manager's Office and Human Resources were reviewed, including whether outsourcing HR functions would be cost-effective.Cemetery Services were reviewed with discussion on cost recovery for basic services. Discussion of customer-facing roles, particularly in Community Development, included exploring alternatives to in-person services while maintaining service quality. Council affirmed the need for a full-cost recovery analysis with staff noting that current fees are subsidized to keep them reasonable. City Council Study Session December 1,2025 Page 2 of 4 A dot-voting exercise was conducted to determine which cost-cutting measures Council would like staff to prioritize. e. Revenue Generation and Additional Cost Cutting Possibilities Discussion Council considered various revenue generation options including local option levies, special districts, fees for services, and parking initiatives. Interest was expressed in exploring paid parking downtown, with concerns about potential impacts on economic development and tourism. Other considerations included the food and beverage tax, local personal income tax, and development opportunities on city-owned land.The discussion highlighted the need to balance revenue generation with economic development goals and long-term community benefits. It was agreed to follow up with additional analysis in April or May, of the fiscal impacts of potential revenue and cost-cutting measures. Staff will analyze the council's priorities and bring back recommendations for revenue generation and expenditure reductions. Council acknowledged that addressing the structural deficit is an ongoing process that will need to be revisited regularly. A dot-voting exercise was conducted to determine which revenue generating measures Council would like staff to prioritize. f. Facilities Masterplan (if time allows) Council decided to schedule a special meeting in January to discuss the facilities master plan. Summary of next steps: • Begin analysis of items that received 4 or more dots in the voting exercises (starting with highest priority items). • Prepare a reserve fund analysis showing 2-month and 3-month operating reserve scenarios with contribution requirements and timeframes. • Schedule special study session in January to discuss Facilities Master Plan. • Schedule joint meeting with Parks Commission in January to discuss Parks-related discretionary spending cuts. • Schedule separate study session to review City Council budget line by line. • Bring back fire department analysis in spring of 2026 including ambulance service area, staffing models, and single role program evaluation. • Prepare cost recovery analysis for fees and services to be presented with annual fee adoption process. III. Adjournment of Retreat The meeting was adjourned at 6:04 p.m. City Recorder Alissa Kolodzinski Mayor Tonya Graham City Council Study Session December 1,2025 Page 3 of 4 Results of dot voting calculated post retreat: Expenses Revenue Analyze and Discuss now Analyze and Discuss now Extending life of fleet vehicles 7 Public/private Partnership to leverage public assets 6 Outsource HR 6 Paid Parking 5 Police staffing levels 5 Event Ticket surcharge 5 Fire staffing levels 4 Food&Beverage Tax Renewed 5 City Band 4 Fuel Tax 4 CM Ad hoc&advisory committees 4 Local Option Levy 4 Cemetery Cost Recovery 4 Nightly Service charge on hotel 4 Tax increment Financing 4 municipal service fee on non-taxable land 4 Discuss later if needed Discuss later if needed RVGOC Membership 3 TLT Increase 3 IT Infrastructure 3 Tax on short term rentals 3 internal services fund charges 2 Tax on vacant homes 3 HPAC local program 2 Economic Improvement District 2 All Dept cost recovery 2 Destination Training 2 Eliminating front facing customer service 1 Personal Income tax 2 Com Dev-All discretionary 1 Increase franchise fee 0 HR recruitment firms 1 City Council Study Session December 1,2025 Page 4 of 4 • ND {S s< At the �� ,�,� r � - •�_�'" - ® nth, .L �' , � "� 12/1/2025 S/4/2025 City Council Business - - • Council requested a retreat to discuss financial 2 and 5 year finanical projections and discuss fiscal sustainability. Focus: General Fund and Reserve Fund oal of retreat Council direction for further investigation into additional revenue opportunities . . service level priorities. =A - L Am V Agenda for today • Forecasting • Goal: understand current and future financial outlook • Reserve Policy • Goal: understand purpose of reserve fund and set goal for operating amount in reserve • Break 2:30-2:45pm • Review of actions taken during budget process and on-going • Facilitated Discussion (Mayor) • Revenue Options and Service Levels • Break 4:30-4:45p.m. • Facilities Masterplan Overview • End 6:00pm General Fund Forecasting Process for forecasting - Gather and analyze historical averages of revenue and expenditures 2019-20 Actual 2020.21 Actual 2021.22 Actual 2022.23 Actual 2023-24 Actual 2024-25 Actual Revenues $ 36,058.286 $ 40,493,301 $ 38,062,681 $ 38,240,676 $ 40,842,959 $ 42,905,005 Expenses 35,234,686 34,550,619 37,066,082 33,427,427 42,164,274 44,590,713 Revenues Less Expenses $ 823,600 $ 5,942,682 $ 996,599 $ 4,813,249 $ (1,321,315) $ (1,685,708) $50.000.000 General Fund $45.000.0w $40,000,000 $35.000,000 S30.000.000 - $25,000.000 - $20,000.000 - $15.000.000 $10,000.000 - $5.000,000 S 2014-15 201&16 201&17 2017-18 201&19 20%M 2020-22 2021-22 2022.23 2023-24 2024-25 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual ,$j •Rwmucs a E.pmaea General Fund Forecasting - Process for forecasting - Gather and analyze historical averages of revenue and expenditures General Fund 2015-16 Actual 2016-17 Actual 2617-13 Actual 2818-19 Actual 2019-20 Actual 2020-21 Actual 2021-22 Actual 2022-23 Actual 2923-24 Actual X14-20 Actual Taxes 16,393,610 16,920.418 17,792.584 18,621,315 18,506,893 19.222,381 19,550,084 19,943,844 20,147,540 20,183,671 Franchise Fees 3,035,118 3,156,375 3,475,651 3,588,310 3,618.053 3,699,766 3,826,950 3,359,019 3,959,069 4,240,385 Licenses and Permits 835.278 1,306,346 838,832 859,045 1,095.600 2,411,618 1,539,283 1,068,226 1,591,398 1,101,054 Intergovernmental Revenue 922.038 1,135,131 2,058,394 2,255,966 2,623.763 4,351,738 3,635,684 4,041,870 1,744,883 1,204,430 Charges for Services 13,823,567 14,511,744 14,712,098 14,916,706 15,773,652 16,363,750 10,219,429 9,614,410 10,586,886 11,121.520 Fines and Forfeitures 180,638 365,365 545,835 588.070 418,514 273,630 171,689 220,916 301,364 182,961 Miscellaneous Revenues 259,864 334,376 88,318 104,950 98,056 103,206 97,796 214.022 831,217 169,950 Interest on Investments 41,840 67,266 117,367 172,415 158,214 75,921 83,752 406,806 1,159,506 850,261 Operating Transfers in 725,435 260,003 1,551,103 825,598 404,988 391,847 7,557,807 3,617,822 521,096 3,850,774 Total $ 36,217,387 $ 38,057,024 $ 41,180,181 $ 41,932,375 $ 42,697,733 $ 46,893,857 $ 46,682,475 $ 42,486,934 $ 40,842,959 $ 42,905,006 General Fund Forecasting - Process for forecasting Gather and analyze historical averages of revenue and expenditures General Fund Expense by Category $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 ,000 $ 0$s,000,000 I I_ _ I■ bP`�o P4��a P4�Oa P4`Oa P``Oa P4�Ja P4`Ja P``a2 P4�Oa P4�Oa O O1�,y0 O1q�O pry�rL~ Oryy�l�' OryryN"i Oryy�LA O`t�� ti ti ti ti ti ti ti ti ti ti ill Personnel Services ■Material and Services ■Capital Outlay General Fund Forecasting • Cost Allocation Plans Internal Service Charges Impact on General Fund Allocations paid by General Fund 2119-21 Actual 2020-21 Actual 2021-22 Actual 2022.23 Actual 2023.24 Actual 2024.25 Actual 2023.26 Actual 2025.26 Budget Police Department Internal Chg-Insurance Svc 52,854 5,905 344,594 344,594 267,191 267,191 72,190 216,570 Police Department Internal Chg-FleetMaint 124.800 124,800 248MI 248,331 372,529 387,430 110,888 332,663 Police Department Internal Chg-Equip Replacm 195,107 195,107 280,210 192,177 332,786 339,414 110,100 330,299 Fire and Rescue Department ImernalChg-Insurance Svc 36,474 4,585 288,184 288,184 221,699 221,699 68,477 205,431 Fire and Rescue Department Internal Chg-FleetMaint 108,625 108,625 263,246 263,246 210,043 218,445 88,105 264,315 Fire and Rescue Department Internal Chg-Equip Replacm 311,096 311,096 491,332 502,572 630,244 643,403 218,163 654A88 Community Development Dept Internal Chg-Insurance Svc 47,681 6,718 25,314 25,314 24,625 24,624 8,781 26,342 Community Development Dept Internal Chg-Fleet Maim 4,780 4,780 2,129 2,129 3,723 3,871 769 2,308 Community Development Dept ImernalChg-EquipReplacm 19,040 19,040 - - - - Parks Department Internal Chg-Insurance Svc 139,428 139,428 62,065 186,196 Parks Department ImernalChg-FleetMaint 289,695 301,283 106,556 319,667 Parks Department Internal Chg-Equip Replacm - - - - 13,333 40,000 $ 900,457 S 780,656 $ 1.943.340 $ 1,866,547 f 2,491,963 $ 2,546.788 $ 959,427 $ 2,578,279 General Fund Forecasting • Cost Allocation Plans Allocations paid by Other Funds 2019.20 Actual 2020-21 Actual 2021-22 Actual 2022.23 Actual 2023-24 Actual 2024-25 Actual 2025-26 Actual 2025.26 Budget Administration Department ImernalChg-Insurance Svc 18,660 2,784 38,915 38,915 37,241 37,241 16,472 49,416 Administration Department Internal Chg-Fleet Maim - - - - - - 333 1,000 Administration Department Internal Chg-Equip Reptacm - - - - - - 1,708 5,124 City Recorder Department Internal Chg-Insurance Svc 520 520 5,410 5.410 3,908 3,908 - - InformationTechnologyDept Internal Chg-InsuranceSvc 1,236 1,236 19,487 19,487 12,687 12,687 3.392 10,175 Information Technology Dept Internal Chg-FleetMaim 3,250 3,250 8,154 8,154 3,347 3,481 984 2,952 Information Technology Dept Internal Chg-Equip Replacm 4,774 4,774 2,402 2,402 9,077 9,077 3.026 9,077 Finance Department Internal Chg-Insurance Svc 6,250 5,600 36,152 36,152 28,241 28,241 6.832 20,497 Finance Department Internal Chg-Fleet Maim 720 720 215 215 1,153 1,1% 166 499 Finance Department ImernalChg-EquipReplacm 4,918 4,918 - - - - 991 2,973 Public Works Department Internal Chg-Insurance Svc 30,212 24,518 89,403 89,403 71,161 71,160 23,128 69,384 Public Works Department Internal Chg-Fleet Maim 31SM 31,670 37,951 37,951 48,293 50,225 14,903 44,710 Public Works Department Internal Chg-Equip Reptacm 42,657 42,657 54,938 56,708 80,785 80,785 28,636 85M $ 144,867 $ 122,727 $ 293,027 $ 294,797 $ 295,893 S 298,004 $ 100,571 $ 301,716 General Fund Forecasting General Fund Expense by Department $50,000,000 $45,000,000 $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual ■Administration Department ■Finance Department ■Information Technology Dept ■City Recorder Department ■Community Development Dept 01 Police Department ■Fire and Rescue Department ■Public Works Department ■Parks Department General Fund Forecasting - Process for forecasting - Gather and analyze historical averages of revenue and expenditures General Fund 2015-1.6 Actual 2016-17 Actual 2017-U Actual 2018.19 Actual 2019-20 Actual 2020-21 Actual 2021-22 Actual 2022-23 Actual 2023.24 Actual 2024-2S Actual Administration Department $ 3,228,929 $ 3,265,035 $ 3,485,067 $ 3,424,075 $ 3,457,547 $ 3,248,826 $ 2,889,022 $ 2,447,389 $ 4,216 230 $ 4,036,984 Finance Department 7,150,975 7,226,431 7,796,342 8,174,480 7,782,887 7,915,003 2,538,221 2,504,582 2,947,691 3,263,434 Information Technology Dept 1,372,561 1,370,890 1,301,904 1,304,149 1,299,078 1,219,507 1,083,371 1,315.699 1,870,595 1,612,123 City Recorder Department 498,254 486,272 1%,861 182,042 183,363 197,856 198,328 227,266 195,982 268,303 Community Development Dept 2,165,798 2,158,846 2,373,875 2,416,322 2,6%,608 2,393,749 2,012,425 1,804,429 2,055,921 2,131,635 Police Department 6,690,677 6,796,543 7,197-66 7,504,873 7,768,441 7,576,476 7,078,771 6,865,534 8,152,677 8,844,074 Fire and Rescue Department 7,666,965 8,046,616 9,310 2% 10,040,008 9,396,269 9,314,643 9,330,436 10,952,799 13,091,298 12,167,031 Public Works Department 1,934,032 2,083,203 2,123,386 2,418,314 2,627,099 2,416,693 2.867,081 2,986,759 3,256,545 3,108,117 Parks Department 5,854,414 5,837,419 5,741.266 6,258,910 6,407.902 5,641,359 6,955.855 6,771.629 6.066,835 7,812,768 $ 36,562,605 $ 37,271,255 $ 39,526,266 $ 41,723,173 $ 41,619,194 $ 39,924,112 $ 34,953,510 $ 35,876,086 $ 41,853,774 $ 43,244,469 201S-16 Actual 2916-17 Actual 2017-13 Actual 2018-19 Actual 2119-24 Actual 2OW21 Actual 2821-22 Actual 2022-23 Actual 2023.24 Actual 2024-25 Actual Personnel Services $ 21,163,046 $ 21,574,708 $ 22.698,710 $ 24,763,458 $ 24,999,794 $ 23,743,560 $ 23,332,599 $ 22,796.255 $ 26,167,870 $ 28,941,626 Material and Services 14,465,750 15,423,064 16,613,447 16,841,981 16,418,410 16,134,539 11.509,360 12242,235 14,747,120 12,822,642 Capital Outlay 998,713 318,038 228,340 122,061 223,884 46,011 111,551 837,595 938,784 1,480202 6 U Al��a�� . . . . . . . . . . . . . . . figgg - FRS e DLLx�� C cc JR U L � NM-1 ti10-1 {O 1f7 t r Y O M M V N N M V N rl N O O O O O O O 0 �� 8' � 'q$^�25 'g• •$ � ,M g u'y' �` � �( o � �R � LL V fi o a cc a s ci w � " }c i0c y° E ! a d a rbi� cl-I 1 �xe3 � g M 8g n U N FbOj `0 C ul d N C Yip d G Lyy' C d v O � W u� �p d d W W N p N h 'iV'ir X it.xi w m n'R o cc = aaaYc� • C Cgi C " Nn� s V c C C C " LL LL C C) a' V C n c C C m General Fund Forecasting-Best Case Scenario 2024-25 6ct-'. 2:2;_6 F.--! 2C--2-,F-cast 2�27-2E F,--. _.. -25 Forecast 2.29 3C Ferecast 23 31 Fcre - Revenues $42,905,006 $42,854,541 $43,390,862 $44,332,433 $45,673,641 $47,060,247 $48,459,408 Taxes 20,183.671 22,371,155 23.027,439 23,704,694 24,403,594 25,124,836 25,834,708 Current Property Taxes 13,432,459 14,120000 14,585,960 15,067,297 15,%4,517 16,078,147 16,608,725 Electric Utility User Tax 3,360,709 3,785,000 3,898,550 4,015,507 4,136,972 4,260,051 4,387,852 Lodging TOT Tax 2,114,227 2,177,654 2,242,983 2,310,273 2,379,581 2,450,969 2,524,498 Public Safety Fee 224,833 750,000 750,000 750,000 750,000 750,000 750,000 Parks User Fee 750,000 750,000 750,000 750,000 750,000 750,000 Prior Property Taxes 226,997 290,000 282,800 285,628 288,484 291,369 294,283 Water Surcharge for AFR 395,772 - - - . Business License 157,417 225,000 227,250 229,523 231,818 234,136 236,477 Marijuana Tax 184,174 189,699 195,390 201,252 207.289 213,508 219,913 Peg Fees 7,443 13,000 13,000 13,000 13,000 13,000 13,000 Liquor License 8,545 9,000 9,090 9,181 9,273 9,365 9.459 Taxi Cab Certification 10,120 10,500 10,500 10,500 10,500 10,500 10,500 F&B Tax 60695 61,302 61,915 62,534 63,159 63,791 30,000 Tobacco License 280 - - _ _ _ Franchise Fees 4,240,365 4,410,000 4,910,000 5,106,400 5,310,656 5,523,083 5,744,006 Charges for Services 11,121,520 11,3411,268 11,699,640 IZ218,069 12,605,428 13,006,648 13.422,249 Ambulance Transports/GEMT 2,229,861 2,300,000 2,323,000 2,346,230 2369692 2,393,389 2,417,323 Internal Charges 5,971,793 6,124,402 6.369,378 6,774,153 7.045.119 7,326,924 7,620,001 Other Charges for Services 2,919.866 2,91%866 3,007,462 3,097,686 3 190.616 3,286,335 3,384,925 Intergovernmental Revenue 584,078 595.760 607,675 619,828 632.225 644.869 657,767 Grants 620.352 250,000 250,000 250,000 250,000 250,000 250,000 Licenses and Permits 1,101.054 1,125.277 1.150,033 664,334 678,949 693,886 709,152 Fines and Forfeitures 182.961 186,620 190,353 194,160 198,043 202,004 206,044 Operating Transfers In 3,850,774 1,532.545 497,545 497,545 497,545 497,545 497,545 Interest onPooled Ewa Investments 850,261 867,266 884,612 902,304 920.350 938,757 957,532 Miscellaneous Revenues 169,960 171,650 173,366 175,100 176,851 178,619 180,405 General Fund Forecasting-Best Case Scenario 2024-25 Actual 2025-26 Forecast 2026-27 Forecast 2027-28 Forecast 2028-29 Forecast 2029-30 Forecast 2030.31 Forecast Expenses $44,590,710 $44,085,705 $44,469,683 $45,147,351 $46,720,581 $48,507,388 $50,350,892 Administration Personal Services 2.383.193 2.721,788 2,826,501 2,947,957 3,075,207 3.208,560 3,348.340 Materials&Services 1,889,272 1.646.740 1,520,069 1,659,582 1,600,217 1.642,008 1,684,992 Capital Outlay 32.820 500.000 25,000 25,000 25,000 25.000 25.000 IT Personal Services 1,098,363 744,440 757,537 794,143 832,764 873,525 916,659 Materials&Services 489.860 480,204 502.958 523,345 544,622 571,683 594,865 Capital Outlay 23,900 56,000 25,000 25,000 25,000 25,000 25.000 Finance Personal Services 1.814,305 1,602,716 1,867,716 1,969,133 2,076,056 2,188,786 2,307,637 Materials&Services 1,391,704 1,320,657 1,286,032 1,324,805 1,357,652 1,391,363 1,425,961 Capital Outlay - 300.000 100,000 100,000 100,000 100,000 Band 57.423 49,936 50,204 51.710 53,261 54,859 56,505 Police Personal Services 6,628,841 6.951.173 7,230,031 7,522,088 7,828.059 8.148,705 8,484,833 Materals&Services 2,215,234 2,085,587 2,154,025 2,211,710 2,304.066 2,366,951 2,436,196 Fire Personal Services 8.825.490 8,991,217 9,177,697 9,510,017 9,863,267 10,238,533 10.637,100 Materials&Services 2,403.112 2,780.343 2,727.372 2.815,919 3,059.203 3.163,676 3,242,145 Capital Outlay 20,142 20,142 20,142 20.142 20,142 20,142 20,142 Wilfte 918.286 N M N� �- 1A f9 O •A N a � � o VI tD N 0 n' h {V e• 10Np N M1N1 r�\ n vI C to N iv i b,O,b x b O Gi n i b b VI A LL O t N U � ��1�25 or gn�gp'i2S 2pSpSpS$ � `a' �p `^ � � � �x�d� �m .a• � L1� 10 O S p O O P O O W N p Yqq� •�-1 YY y�yp YY YY��[[ Y yx[YY .xn x yp N �D N' N N� •^^ � M lr T'I V b b b X b b b i r 6 b�o 4�� o'�i1g�q.�a �bi �'ileQ��pa 2pS2pSpaZpS�S W o�y�f��}}a 1pQ�gp $ ape ii�e ER O h G S ^ O a i{0D4 N N N U tQ oe3 Fa m 'n F F F C LL {V. ei N o N VS p LL S rvx m a( A n I�1 O b N m v D b bMi m b b b m x b o cn N ^ f r� QQ QQ QQQQ5Q� 5� 5Q� y� � e�1fg3� OpS1 qqa �♦�3 S8S38S8S � o pg •" � � : aaoQ��"O'�Q�Y�� "�R��n�o � w R � U0 t0 O O 10^ N tl N N R ayfi ,�^^ LL N CI O PI N N N N ct V^I R '• x N C0 N ® M1 N }��J'/� Wpqp ppqp�� pp �p ♦ 8 q 8 v c j0 m V 0 A N i0 �O t♦Np E�p (y�� O CN N m v/,^� m N N n I� p !O O m ^ N n .eCi N ug Y1S Q N V L- R L- O O �Qp(eRy$ogQFgQg� sVeR � �� ya�sj y� ar r d N F V W 2 Ell c I� �_N ��g Coo p , _� _ LL _ UU 0r oU t' u'� eo _Z C 6 N o C 61 0 m O ECD IL q a u5 General Fund Forecastina-Worst Case Scenario 2024-25 Actual 2025-26 Forecast 2026.27 Forecast 2027-28 Forecast 2028-29 Forecast 2029-30 Forecast 2030-31 Forecast Revenues $42,905,006 $42,690,310 $42,758,761 $43,509,122 $44,659,829 $45,854,310 $47,060,152 Taxes 20,193,671 22,348,171 22,900,111 23,467,269 24,050.075 24,648,972 25.229,988 Current Property Taxes 13,432,459 14,120,000 14,543,600 14,979,908 15,429,305 15,892,184 16,368,950 Electric Utility User Tax 3,360,709 3,785,000 3,860,700 3,937,914 4,016,672 4,097,006 4,178,946 Lodging TOT Tax 2,114,227 2,156,512 2,199,642 2,243,635 2,288,507 2,334,277 2,380,963 Pubic Safety Fee 224,833 750,000 750,000 750,000 750,000 750,000 750,000 Parks User Fee 750,000 750,000 750,000 750,000 750,000 750,000 Prior Property Taxes 226,997 290,000 282,800 285,628 288,484 291,369 294,283 Water Surcharge for AFR 395,772 - - - - - - Business License 157,417 225,000 227,250 229,523 231818 234,136 236,477 Marijuana Tax 184,174 187,857 191,615 196.447 199,356 203,343 207,410 Peg Fees 7,443 13,000 13,000 13,000 13,000 13,0D0 13,000 LKp"License 8,545 9,000 9,090 9,181 9,273 9,365 9,459 Taxi Cab Certification 10,120 10,500 10,500 10,500 10,500 10,600 10,500 F&B Tax 60,695 61,302 61,915 62,534 63,159 83,791 30,000 Tobacco License 280 - - - - - - Franchlse Fees 4,240,395 4,325,193 4,465,193 4,544,297 4,635,182 4,727,886 4,82Z,444 Charges for Services 11,121,520 11,344,268 11,763,931 12,356,163 12,931,294 13,332,270 13,860,615 Ambulance TransportsiGEMT 2,229,861 2,300,000 2,323,000 2,346.230 2,369,692 2,393,389 2,417,323 Internal Charges 5,971,793 6,124,402 6,491,866 7,031,378 7,453,261 7,900,456 8,374,484 Other Charges for Services 2,919 866 2,919,866 2,949,065 2,978,555 3,008,341 3,038,424 3,068,809 Intergovemmental Revenue 684,078 584,078 584,078 594,079 554,078 684,078 594,078 Grants 620,352 250,000 260,000 250,000 250,000 250,000 250,0W Licenses and Permits 1,101,064 1,101,054 1,101,054 601,061 601.054 601,054 601,054 Fors and Forfeitures 182,961 184,791 186,639 188,505 190,390 192,294 194,217 Operating Transfers In 3,850,774 1,532,545 497,545 497,545 497,545 497,1145 497,545 Interest onPooled Investments &W,261 850,261 85Q261 Ill950,261 850,261 85Q261 Miscellaneous Revenues 169,960 169,950 189,950 169,950 169,950 169,950 169,950 General Fund Forecasting-Worst Case Scenario 2024-25 Actual 2025-26Forecast 2026-27 Forecast 2027-28 Forecast 2D28-29 Forecast 202930 Forecast 2030-31 Forecast Expenses $44,590,710 $46,346,775 $46,328,343 $47,610,533 $49,655,867 $52,092,130 $54,673,872 Achninistiatlon Personnel Services 2,383,193 2,825,561 2,955,056 3,106,644 3,269,825 3,445,894 3,636,321 Materials&Services 1,889,272 1,646,740 1,520,069 1,559,582 1,600,217 1,642,008 1,694,992 Capital Outlay 32,820 500,D00 25,000 25,000 25,000 25,000 25,000 IT Personnel Services 1,098,363 755,229 801,222 864,219 912,569 976,972 1,048,228 Materials&Services 489,860 480,204 502,958 523,345 5411,622 571,683 594,865 Capital Outlay 23,900 56,000 25,000 25,000 25,000 25,000 25,000 Finance Personnel Services 1,814,305 1,625,509 1,890,609 1,993,163 2,101,392 2,215,498 2,335,799 Materials&Services 1,391,704 1,323,246 1,292,644 1,348,493 1,399,942 1,463,885 1,510,460 Capital Outlay - 400,000 100,000 100,000 100,000 1D0,000 Band 57,423 49,936 50,204 53,216 56,409 59,794 63,381 Police Personnel Services 6,628,941 7,120,098 7,405,025 7,703,395 8,015,922 8,343,378 8,686,579 Materials&Services 2,215,234 2,085,587 2,180,485 2,276.725 2,411,058 2,519,580 2,638,378 Fire Personnel Services 8,825,490 9,372,504 9,709,576 10,174,614 10,678,421 11,225,542 11,821,150 Materials&Services 2,403,112 2,780,343 2,756,967 2,882,572 3,166,197 3,314,521 3,440,595 Capital Outlay 20,142 20,142 20,142 20,142 20,142 20,142 20,142 Wildfire 918,286 General Fund Forecasting-Worst Case Scenario 2024-25 Actual 2025-26 Forecast 2026-27 Forecast 2027-28 Forecast 2028-29 Forecast 2029-30 Forecast 2030.31 Forecast Public Works Personnel Services 1,647.611 2,439,971 2,564,788 2,702,464 2,851,222 3,012,341 3,187,280 Materials&Services 941,409 1,001,970 1,061,813 1,117.927 1,177,405 1,240,231 1,306,60(l Capital Outlay 619,099 $90,000 340,000 200,000 200,000 200,000 200,000 Community Development Personnel Services 1,216,772 2,899,703 2,227.201 1.525,041 1,606,637 1,694.800 1,790,286 Materials&Services 166,641 211,749 1","1 193,254 189,023 195,103 201,513 Building 748,221 Parks Personnel Services 4,230,866 4,835,564 5,093,938 5,373,836 5,677,802 6,008,733 6,369,934 Materials&Services 2,797,661 2,648,165 2,727,699 2,886,616 3,054,973 3,233,319 3,422,250 Capital Outlay 794,242 175,000 175,000 175,000 175,000 175,000 175,000 Transfer out Building Fund 400,000 Transfer out Housing 100,000 100,000 100,000 100,000 100,000 100,000 100,000 Transfer out CIP 1,064,446 200,000 200,000 200,000 200,000 200,000 200,000 Transfer out Debt Service 181,297 153,000 153,000 153,000 153,000 153,000 163,000 Transfer out Cemetery Trust 500 600 500 500 500 500 500 Contingency Used 400,000 Revenue,Minus Expenses ($1,685,704) ($3,656,465) ($3,569,582) ($4,101,411) ($4,996,038) (56,237,820) ($7,613,720) Beginning Fund Balann $17,057,723 $n37Z019 $11,715,554 $8,145,972 $4061,50 ($951,477) ($7,189,298) Ending Fund Balance $15 i72,019 $11,MS54 $$145,9T2 $4,044S61 ($951,477) ($7,1B9,-) ($14,803,018) Operating Expenditures $41,764,264 $44,452,133 $44,889,701 $46,211,891 $48,657,225 $51,093,498 $53,675,230 Fund Balance Policy 116.67%) $6,962,102.81 $7,410,170.62 $7,483,U3.22 $7,703,522.23 $8,nX159.47 $8,517,284.51 $8,947,660.90 Excess/(Deficiency) $8,409,916 $4,30.5,383 $662,959 (53,658,961) ($9,062,637) ($15,706,582) ($23,750,679) General Fund Forecasting-Food and Beverage and TLT Update • Food and Beverage Tax audits • First Quarter returns due to the City November 15 showed $152,000 in total higher than same quarter previous years to reflect audit. • FY 2025 General Fund portion $60,695. General Fund portion is 2%. • Transient Lodging Tax .YearoverYear-Lodging TLT Tax-October 2016-17 2017.18 2018.19 2019-20 2020.2.1 2021.22 2022.23 2023.24 2024.25 2025-26 General Fund $ 1,158,421 $ 1,223,943 $ 1,227,996 $ 1,297,952 $ 568,158 $ 878,374 $ 544,646 $ 542,313 $ 644,455 $ 716,459 Tourism Fund 244,238 242,193 259,445 321,286 $ 1,158,421 $ 1,223,943 $ 1,227,996 $ 1,297,952 $ 568,158 $ 878,374 $ 788,884 $ 784,506 $ 903,900 $ 1,037,745 Percentage Change 5.7% 0.3% 5.7% -562% 54.6% -10.2% -0.6% 15.2% 14.8% Total 2016-17 2017-18 2013.19 2019-20 2420-21 2021-22 2022-23 2923-24 2024-25 General Fund 2,818,165 2,909,529 3,134,108 2,236,782 2,072,823 1,868,282 1,941,153 1,904,994 2,114,227 Tourism Fund - - 870,482 853,267 922,661 $ 2,818,165 $ 2,909,529 $ 3,134,108 $ 2,236,782 $ 2,072,823 $ 1,868,282 $ 2,811,635 $ 2,758,261 $ 3,036,888 Percentage Change 3.2% 7.7% -28.6% -7.3% -9.9% 50.5% -1.9% 10.1% City_o_fAshland Healthcare History Average Average Average Monthly Claims Over %ofPaldMed/Rx Plans Offered EECourx ManthlyCost Cost perEE 5100,000 Claims Fully Insured(PacdicSource) 411111.3/31/12 264 S 279,095 $ 1,056 1 114t $200 Deductible(Grandfathered) 4/1/12-3/31113 272 $ 303,853 $ 1,116 2 15% $200 Deductible(Grandfathered) 4/1113-6/30/13 270 $ 304,843 $ 1,129 - 0% $200 Deductible(Grandlathered) Self4nsurance(PacIflcSourse) 7/1113-6/30/14 270 S 336,635 $ 1,246 4 35% $200 Deductible(Grandfathered) 711/14-6/30/15 265 S 312,407 S 1,179 4 42% $200 Deductible(Grandfathered) 711/15-6/30/16 274 $ 401,085 S 1,464 4 13% $200 Deductible(Grandfathered) 7/1/16-6/30/17 274 S 396,330 $ 1,446 4 17% $200 Deductible(Grandfathered) 7/1/17-6/30/18• 274 $ 489,481 S 1,786 10 26% $300 Deductible(Grandfathered) •�amrms Fully Insured(CIS4tagence) 7/1/18-12/31/19 276 S 483,377 $ 1,751 8 17% $300 Deductible(Grandfathered) 11120-12131120 265 S 399,009 S 1,506 8 27% S500 Deductible($300 G(andfathered-Fire) 11121-12/3121 256 $ 412,376 S 1,611 7 34% $500 Deductible($300 Grandfathered-Fire) 11122-12/3122 243 $ 385,956 $ 1,588 4 16% $500 Deductible($300 Grandfathered-Fire) 1/123-12/3123 235 $ 358,604 $ 1,626 8 32% $1,600 Deductible-$600 Deductible Buy-Up(Police NoBuy-Up) 1/124-12/3124 246 S 403.249 S 1,639 11 38% $1,500 Deductible-$500 Deductible Buy-Up(Police NoBuy-Up) 1/1/25-9/30/25• 249 $ 444,826 $ 1,784 6 32% $1,500 Deductible-$500DeducbtAe Buy-Up(Police NoBuy-Up) WE 'Pv u31 Yeas FWA General Healthcare Info FULLY INSURED VS.SELF INSURED REASONS FOR COST INCREASES PROS CONS FACTORS Access to experience data(helpful in identifying trends to help weather be i*a d"experience riencal eti earon s Increased demand for serncc manage the program) vaeather'bad"experience years Only fund claimswhen they Unfavorable demographics Shortage of medical professionals/Increased happen i.e.aging population,known risks wages&recruiting costs of such professionals resulti ng in increased costs Purchase stop-loss coverage to Requires more Internal Increase in high cost of illnesses-large ctaims protect from large claims or administration used to be defined as over$50,000,now it is unexpected utilization defined as over$100,000 Should be large enough to spread Aging population: •Increase in cardiac/cancer treatments Flexibility in plan design vs.off-the- risk'Large a stable population .Increase in orthopedic treatments Large employers=200-300 shelf plans •Over age 65-Medicare reduces employees with a high level of nsk reimbursements,provider cost shift to roieranceandcontinuesrorow non-Medicare covered patients Increase in prescription costs: •In the last 3 years,45 new approved drugs Stable industry i.e.not subject to exceed$50,000 per year Lower administration fees downsizing due to economic •Ceti/gene therapies exceed$SM per year influences(layoffs) •Extended utilization(cancer mettications/treatmerns continued past remission as"preventative"therapy) Reserve Fund • Goal • Three months of operating expenditures $8.7 Million • Current balance $2 Million Annual 2019-20 Actual 2020-21 Actual 2021.22 Actual 2022-23 Actual 2023.24 Actual 2024.25 Actual Personnel Services $ 20,787,577 $ 20,289,491 $ 19,341,615 $ 19,051,648 $ 26,167,870 $ 28,941,626 Material and Services 14,271,174 13,960,825 8,641,492 9,251,112 14,747,120 12,822,642 Capital Outlay 175,435 32,436 14,547 801,696 938,784 1,480,202 Transfer-Out,Contingency,EFB 500 267,868 9,068,428 4,322,970 310,500 1,346,243 $ 35,234,686 $ 34,550,620 $ 37,066,082 $ 33,427,426 $ 42,164,274 $ 44,590,713 3 Months $ 8,808,672 $ 8,637,655 $ 9,266,521 $ 8,356,857 $ 10,541,069 $ 11,147,678 Average $ 9,459,742 Operating $ 35,058,751 $ 34,250,316 $ 27,983,107 $ 28,302,760 $ 40,914,990 $ 41,764,268 3 Months $ 8,764,688 $ 8,562,579 $ 6,995,777 $ 7,075,690 $ 10,228,748 $ 10,441,067 Average $ 8,678,091 Reserve Fund • Roadmap to get there • Adhere to Policy • Additional direction from Council General Fund 2019 2020 2021 2022 2023 2024 2025 Ending Fund Balance $ 4,963,179 $ 5,053,650 $ 9,481,991 $ 13,565,789 $18,379,039 $20,388,843 $15,372,017 Policy 3,203,096 5,778,160 5,815,645 5,406,202 7,310,626 5,997,105 5,879,923 Assigned 1,177,370 1,177,370 1,412,660 1,104,059 1,273,362 2,398,945 1,855,029 Unassigned 3,785,809 3,876,280 8,069,331 12,461,730 17,105,677 17,989,898 13,51%988 Over(under)Requirement Less assigned 582,713 (1,901,880) 2,253,686 7,055,528 9,795,051 11,992,793 7,637,065 Annual Expenditures 35,351,618 35,058,751 34,250,316 27,983,107 28,302,761 40,914,990 41,764,268 50% 16,682,897 17,331,015 17,443,448 16,215,362 15,089,364 16.200,143 18,497,003 Amount available totransfer to Reserve (12,897,088) (13,454,735) (9,374,117) (3,753,632) 2,016,313 1,789,755 (4,980,015) 20% 403,263 357,951 Transferred to Reserve Fund 1,415,000 At such time as the unrestricted and undesignated balance exceeds 50 percent of the average annual expenditures of the prior three years,the City will transfer rat less than 20 percentto the Reserve Fund. Previous/ Current Cost Cutting and Operational Changes Staffing changes: elimination of IT director, Payroll/ HR software implementation- elimination of finance manager, PD estimated implementation completed records clerk, Fire training officer,1.5 IT user summer 2026 support, Nature center position -3-5% reduction in all GF budgets Utility Billing Software upgrade- estimated implementation completed fall/winter 2026 Reduction in Council training $ Cross training and position review prior to hire Transition to digital guides citywide Insured Paid Leave Oregon Plan Reduction in parks services (pool, rink, Transition to cloud-based services splashpad, nature center, neighborhood park maintenance, restroom hours) Review of service levels within department Review of OT usage L/r Financial Stabilization • Appropriate utility rates (on-going) • Forthcoming- Electric,Wastewater & Stormwater. • Right size staffing (on-going) • Balance of technology and manual processes • Payroll software, utility billing software, AMI, pesticides • Ratio of manager to front line staff (on-going) • Finance and Parks department adjusting • Fleet Evaluation (complete- building consolidation needed to reduce cost) • Contract evaluation (complete &on-going) • Building Department Fund (on-going- need infusion from GF to transition- consideration for next BN) • Consideration of contractual services (on-going) • Building Consolidation and Divestment (need Council direction) • Single Role Program/Fire staffing levels/ Reginal Fire Study (will come to Council Spring /Summer 2026) • Long-term financial planning (post strategic planning process) • Essential versus non-essential/ community service level desire/ sufficient reserves impact 1i Impact Next Steps: Revenue Residents • Fuel Tax Elector approval Minimal Medium High Draft resolution for ballot TILT increase Elector Approval Medium Minimal High Draft resolution for ballot Local Option Elector Approval High High (non- High Draft resolution Levy regressive) for ballot Special District Elector Approval High High (non- High More research Creation regressive) and engagement Increase Council Low High Low Staff prepare franchise fees necessary agreements Municipal Council Medium High Low Draft resolution Service Fees (regressive) Fees for Service Council Minimal Medium Low Update fee book Paid Parldng Council Medium Medium High RFP for partners I I I i I I i QUESTIONS? 3 i f i i i t I�r►