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HomeMy WebLinkAbout2026-07-20 Study Session rn Council Study Session Meeting Agenda ASHLAND CITY COUNCIL STUDY SESSION AGENDA Monday, July 20, 2026 Council Chambers,1175 E Main Street Live stream via RVTV Prime at rvtv.sou.edu or broadcast on Spectrum 180. Public comment is welcome on agenda items. To speak electronically during the meeting or to submit written comments in advance, please complete the online Public Comment Form by 10 a.m. the day of the meeting. I. EXECUTIVE SESSION 4:30 p.m. To consult with counsel concerning the legal rights and duties of a public body with regard to current litigation or litigation likely to be filed pursuant to ORS 192.660 (2)(h). II. CALL TO ORDER 5:30 p.m. III. REPORTS AND PRESENTATIONS a. Houseless Services Follow-Up Discussion b. Opportunities and Beautification of the Southside C. Financial Policies IV. ADJOURNMENT If you need special assistance to participate in this meeting,please contact Alissa Kolodzinski at recordergashlandoreegon.gv or 541.488.5307(TTY phone number 1.800.735.2900). Notification at least three,business days,before the meeting will enable the City to make reasonable arrangements to ensure accessibility to the meeting in compliance with the Americans with Disabilities Act. 'Agendas and minutes for City of Ashland Council,Commission and Committee meetings may be found at the City website,ashlandoregon.gov, Page 1ofI Pagel of 56 VI Council Study Session Data July 20, 2026 Houseless Services Follow-Up Discussion City Manager's Office Sabrina Cotta TIME ESTIMATE 15 minutes CATEGORY Staff Direction - provide direction to staff on the body's desired next steps. SUMMARY On May 18th, 2026 the City Council was presented with agenda item: Legal Framework for Camping Ordinance and Addressing Issues Relating to the Unhoused Population of Ashland by City Attorney Pietila. City Council requested that staff reach out to regional partners to gather input on how existing City resources could be used most effectively within the continuum of homeless services. Staff is requesting Council direction to work with OHRA to pilot a managed program for the facility known as the dusk to dawn lawn. POLICIES, PLANS & GOALS SUPPORTED Regional cooperation, including in support for public safety and homelessness BACKGROUND AND ADDITIONAL INFORMATION The City is currently partnered with OHRA to provide storage at the dusk to dawn lawn. Recently, OHRA has facilitated potable water being available onsite versus across the street at Garfield Park. The City is currently reviewing an agreement between OHRA and La Clinica to facilitate a mobile health presence weekly at the dusk to dawn site during afternoon hours. Working with representatives of OHRA, Rogue Retreat, Ashland Library, APD and Access the City, an analysis of goals around providing a camping space and evaluation of locations was conducted and concluded the following: The goals of the City's provision of the dusk to dawn lawn are as follows: • Ensure legal compliance in alignment with the City's camping ordinance. • Orientate towards professional management by a service provider. • Continue to meet the basic needs of those utilizing the program. • Keep operational costs low given limited resources. • Not disrupt or hinder current services provided by community partners. Ideas that were assessed and reviewed are the following: OHRA's Location: OHRA center with an addition of 20 tents on platforms Benefits: • Access to services • Laundry/Shower on site for limited use • Currently, most dusk to dawn campers visit OHRA or are connected to the organization. Page 1 of 3 Page 2 of 56 VI Council Study Session Challenges: • People exited from OHRA for behavioral issues can now access the dusk to dawn lawn; that privilege would be lost. • Adverse impact on resource centers' day-to-day function • Reduced available outdoor space for current shelter guests • Adverse impact on interactions with current shelter guests and more transitional dusk to dawn guests. 2200 Ashland Steet Night lawn in rear of 2200. • 30 platforms • Access to restrooms/showers • Storage shed relocation to site • Dedicated staff person to coordinate volunteers/food/services • Coordinate overnight staff/volunteers Benefits: • Industrial location • Close to OHRA. • Large space to spread out and offer separate space for women and families. • Indoor laundry and restroom facilities. • Convenient location to services. Challenges: • More staff needed to enforce rules and safety around the building 24/7. • Neighborhood opposition based on 2200 Ad Hoc recommendations. • Second 2200 Ad Hoc recommendation to RFP site for service use. • Opportunity for size and scope creep. • Total project cost higher. Current location Contract service provider for a full-time coordinator to develop and enforce rules. Benefits: • Can be implemented quickly as current amenities are already funded and present. • Less staff support needed. • Provide consistent monitoring and engagement activities with campers. • Be responsible for exiting campers who violate rules, relieving oversight burden from APD. Challenges: • Proximity to residential homes and Garfiled Park • Staff impacts continue After assessment by the working group, it has been determined that the best path forward is to formalize a pilot Page 2of3 Page 3 of 56 W% Council Studv Session between the City and OHRA for management of the dusk to dawn lawn. This will allow both entities to determine the impact of a managed space. Thank you to the working group for their time and effort in analyzing options on how best to move forward. FISCAL IMPACTS For BN 2025-2027 $189,000 was budgeted by City Council for houseless services to include both the dusk to dawn lawn and severe weather shelter. The City currently spends around $30,000 to $40,000 on infrastructure at the site annually. The exact fiscal impact of management of the dusk to dawn lawn will be determined through negotiations with OHRA to provide the service during the pilot program. SUGGESTED ACTIONS, AND/OR OPTIONS Staff recommends Council provide staff direction to work with OHRA on an agreement for a pilot program of 6 months to manage the dusk to dawn lawn at its current location. REFERENCES &ATTACHMENTS 1. May 18_houseless agenda item 2. Houseless issues resources Page 3 of 3 Page 4 of 56 Council Study Session Datr May 18, 2026 Legal Framework for Camping Ordinance and Addressing Issues Relating to the Unhoused Population of Ashland Legal Johan Pietila, City Attorney TIME ESTIMATE 60-90 minutes CATEGORY Informational -this is to inform the body on a particular topic. No motion or direction needed. SUMMARY This item follows the Council's April 7, 2026, discussion regarding Garfield Park concerns and the April 13, 2026, special meeting concerning the proposed approach to Ashland's camping framework and Night Lawn location. During those meetings, Council identified the need for a broader, structured policy discussion concerning the intended purpose of a designated camping space, site location, operational management standards, and daytime options for Night Lawn residents, and directed that the first meeting in that process serve as a legal and policy level-setting session. This presentation is intended to provide that foundation. It will provide Council background on the legal history of camping regulation, Oregon's statutory framework after Grants Pass v. Johnson, recent Oregon case law, Ashland's current ordinance and practices, and practical areas of ongoing legal and operational risk. This meeting will provide information to promote more robust overarching policy discussions and directions forward, to be held at those future meetings. The purpose of the item is not to recommend a final policy outcome at this stage, but to help Council define the policy questions it wishes to address in subsequent meetings. POLICIES, PLANS & GOALS SUPPORTED • Lawful, humane, and operationally sustainable management of public space, public camping, and issues pertaining to the unhoused population, which is consistent with state law and Ashland Municipal Code. • Quality of life and sense of community belonging through respect, inclusion, and equity. • Regional cooperation and partnerships, including support for public safety and homelessness BACKGROUND AND ADDITIONAL INFORMATION 2023-11-06 Study Session Camping and Livability Council Communication and Minutes. 2023-11-21 Council Meeting. Item was tabled to next meeting. Council Communication and Minutes. 2023-12-05 Council Meeting. First Reading of the ordinance passed. Council Communication and Minutes. 2023-12-19 Council Meeting. Second Reading of the ordinance passed. Council Communication, Minutes, and the signed ordinance. On April 7, 2026, Council considered Garfield Park concerns, including complaints associated with Dusk-to-Dawn Lawn guests using Garfield Park during the day, with reported concerns relating to violence, threats, drug activity, nuisance noise, gazebo occupancy, smoking, and littering. That meeting also identified short-term enforcement Page 1 of 2 IF I Page 5 of 56 or (^ mnvil st»( v gecc nn and service responses, while recognizing that the issues may persist absent broader policy direction regarding the Night Lawn, related services, and use of public space. At the April 13, 2026 special meeting, Council further considered a proposed approach to the City's camping framework and location issues. Discussion points included the current Night Lawn's proximity to the police department, the Grove, and the public works compound; the practical effect of daytime exit and reentry times; the burden that operational management places on law enforcement; and continuing issues relating to storage and site management. These discussions led Council to agree to a multi-meeting process addressing interrelated policy questions concerning the vision and intended purpose of a designated camping space, site location, operational standards, and daytime options for Night Lawn residents. This is the first meeting in that process. As requested, the legal briefing is intended to orient Council to the current legal landscape rather than to suggest that the law is settled. Although Grants Pass v. Johnson narrowed one federal Eighth Amendment theory, Oregon law continues to require that local regulations governing sitting, lying, sleeping, and keeping warm and dry on public property be objectively reasonable as to time, place, and manner under ORS 195.530. As a part of this level-set, it should be noted that litigation risk in Oregon remains tied not only to ordinance text, but to implementation, including notice practices, property handling, disability accommodation, humane alternatives, management of public health consideration, and coordination with any community partners and service providers. The intent of this presentation is to provide a common legal and factual baseline before Council considers more specific policy decisions in later meetings. Upon direction, subsequent meetings may include additional informational presentations and further discussion of process, scope, and structure. FISCAL IMPACTS This item is informational and does not itself request budget approval or authorize a new program. However, as will be discussed, management of a designated camping space carries significant direct and indirect financial and staffing burdens, and future Council discussions may include a more detailed overview of current expenditures, budgeted resources, and the operational implications of different policy choices. SUGGESTED ACTIONS, AND/OR OPTIONS No formal action is required for this informational item. Council may, however, provide direction regarding: • The policy questions Council wishes to prioritize in follow-up meetings—suggestions will be provided at the end of the presentation and are included in the materials from Councilor Bloom. • Whether Council wants additional information regarding Night Lawn history, City-owned properties, fiscal impacts, or service and operational models. • The scope and sequencing of future meetings addressing designated camping space purpose, location, operational standards, and daytime options. REFERENCES &ATTACHMENTS 1. 2026_Legal Issue RE Unhoused and camping policies 2. Proposed Approach to Camping Framework and Location by Councilor Bloom (1) Page 2of2 Page 6 of 56 Current Council Policy Decisions Camping Ordinance: Res. No If no, no space needed If yes, than: Purchas Dusk to Dawn Lawn i • Bare minimum: • Porto potties • Hand washing • Storage • Dumpster What problem are we trying to solve? Council wants to retain camping ordi managed? • Constraints- limited viable city owned locations ( current location& 2201 change or land purchase) • City not SME's and should not manage, need partner • Resource limitations- Funding CM Kaplan 1) Should the City maintain a designated camping space to allow for enforcement of the camping ordine should also ensure the camping space is operated in a way that facilitates folks' move to transitior If yes -Where should that designated camping space be located? I don't know. I think it's less important wl managed by a social service organization with demonstrated expertise and experience working with unr -What amenities should the designated camping space have? Secure storage, safe water, toilet. Best i (like at Rogue Retreat's Crossings) . 2) Should the designated camping space be managed? Yes, it should be managed by a capable social sere officers to manage it without appropriate training or support. If yes, - How do you define managed or what does managing the space mean to you? Operated with the purpose facilitating folks' transition to transitional or permanent housing. -In your opinion who should manage the space? Ideally it would be OHRA since they already see and se Retreat or another capable social service organization could do it if they have the means to facilit 3) Is there a resource limit for this service (what dollar amount) ? Yes, but I don't know what it is would do it as part of their mission, with the City providing the space and covering utilities. That Medford, but that may not be feasible every year, so I'd want staff to work on being a good partner arise. 4)What is the total amount of money the city should be spending every year overall for houseless sex been allocating $100,000/year plus space and utilities. All other costs are going up, so it's reasor important is the quality of the partnership we establish with local social service organizations whc ourselves. Any thing else you would like to add? Unfortunately, homelessness is not going away any time soon, e on the unhoused people themselves and our whole community. What's perceived as harsh treatment can r I'd rather pay the cost to increase the chances that unhoused people will use a safe space (and hope save money and repel them to the outskirts of town or into the watershed where fire and other risks CM Bloom 1 ) Should the City maintain a designated camping sp enforcement of the camping ordinance ? Yes Current location Access to clean water, heat source for food provided by volunteers, a surfa (something permanent) Should the designated camping space be managed? Yes would like to see the proposal from the provider OHRA 4 ) What is the total amount of money the city shout year overall for houseless services ( camping/ seve shelter/other? ) would separate out the capital from the operations. Operations shouldn't yea r. $200k Mayor Graham 1 ) Should the City maintain a designated camping space to allow for e. YES If yes -Where should that designated camping space be located? Where it is -What amenities should the designated camping space have ? It depends responsible for it, then what we currently have : toilet, hand washinc storage . 2) Should the designated camping space be managed? Minimally If yes, - How do you define managed or what does managing the space mean to 3 shed and make sure people are off the lawn at the right time . -In your opinion who should manage the space ? OHRA or another partnez 3) Is there a resource limit for this service (what dollar amount) ? I information . I just know I don ' t want to pay people to run that site . investment and we don ' t have the money anyway. 4) What is the total amount of money the city should be spending ever3 (camping/ severe weather shelter/other?) I don ' t have a figure in Mir Anything else you would like to add? I think handling a severe weatr services obligation is solid. I also think having a night lawn so the AND provide a safe place for people to sleep (as safe as we can make need it while helping them to find services . I want our police offic( CM Sherrell 1. Yes, for sure. As much as I would like to see it at 2200 or the like, I still b NIMBY by property the city owns. I would like to see a brick and motor Similar to where the vac trucks are parked just NE of the current night I; 2.Yes, look into a similar contract with ORHA like during this past winter. 3. I'm not sure. Up to 750k annually based on past projections. I would nee 4. 1-2m, also would seek guidance and oversight. CM Hansen 1) Should the City maintain a designated camping space to allow for enforcement of If yes -Where should that designated camping space be located? -What amenities should the designated camping space have? Yes, for that and other reasons. At the current night lawn location. Sanitation and security amenities should be best to oL 2) Should the designated camping space be managed? If yes, - How do you define managed or what does managing the space mean to you? -In your opinion who should manage the space? Yes. Should be lightly managed by third party twice a day with City staff or volunteers to assist. Police should be in close 3) Is there a resource limit for this service (what dollar amount) ? I think we should account for already embedded costs and allocate to better resources. 4) What is the total amount of money the city should be spending every year overal weather shelter/other?) See above. VI Council Study Session Data July 20, 2026 Opportunities and Beautification of the Southside Mayor and Council TIME ESTIMATE CATEGORY Staff Direction - provide direction to staff on the body's desired next steps. SUMMARY Councilor DuQuenne and Mayor Graham requested this item on the agenda. Please see attached report. POLICIES, PLANS & GOALS SUPPORTED BACKGROUND AND ADDITIONAL INFORMATION FISCAL IMPACTS SUGGESTED ACTIONS, AND/OR OPTIONS REFERENCES &ATTACHMENTS 1. Southside_CC_7.20.26 2. SouthsideBeautification GinaDuQuenne CC 7.20.2026 V2 Page 1ofI Page 13 of 56 Council Study Session July 20, 2026 Agenda Item Opportunities and the Beautification of the Southside From Council Title Southside Contact Councilor DuQuenne and Mayor Graham Item Type Requested by Council x Update ❑ Request for Direction ❑ Presentation ❑ BACKGROUND Exit 14 is one of two gateways to the Ashland community for residents and visitors,so how it feels to enter town from this exit is important. It also happens to have the largest concentration of large, public facing businesses in the community, including two grocery stores,five gas stations, a pharmacy,general supply shop,and a tire repair store,among many other smaller shops and restaurants. It has the widest swath of roadway in our community, Ashland Street/Hwy 99,which has five lanes and is subject to state regulation as a state highway.The area is also home to a large number of Ashland residents who are deeply connected to this neighborhood and want to feel a stronger connection to the rest of Ashland. Specific challenges include: • Industrial feel due to large buildings with extensive parking lots and the large roadway,especially now that the median has been removed from the overpass over the train tracks • Removal of the rocks • Cleaning the bike lanes • Lack of beautification and regular maintenance of medians • Adequate garbage collection • Weed abatement • Underutilized economic opportunities • Vacant building and lot maintenance • Concentration of services for unhoused residents and visitors • General business street/sidewalk maintenance • Lack of art and efforts to beautify this section of town, including a welcome sign, holiday decorations,and banners celebrating Ashland that are present in other areas • Lack of a sense of neighborhood identity for this side of town Page 1 of 3 Page 14 of 56 Council Study Session These characteristics,and its proximity to the interstate, make it challenging to create a warm Ashland welcome for residents and visitors alike,yet this section of town also holds great promise for economic growth and workforce housing.Addressing these issues effectively requires that Council develop an overarching support program for this side of town. RECENT IMPROVEMENTS A concerted effort by the Ashland City Council to address these challenges will build on recent investments by business owners, residents, and the City, including: • Commercial building improvements and beautification: Shop'n Kart, Les Schwab, Ashland Street Inn, Dr. Eric Dukes, IPCO Commercial Properties,OHRA,the City's 2200 Ashland Street facility, and others • Re-development of the area in front of Shop'n Kart and the U-Haul property • New Goodwill facility • Volunteer neighborhood clean ups, including an annual clean up hosted by OHRA • Enhanced law enforcement presence • Business facade grants from the City of Ashland to local business owners • Greater garbage bin capacity • Master facilities plan for the 2200 Ashland Street property • New road construction - Independent Way • Ashland Street road project with bicycle lanes POTENTIAL ACTIONS PROPOSED Councilor DuQuenne and Mayor Graham propose that the City of Ashland undertakes a coordinated effort to support this section of town that includes: Page 2 of 3 Page 15 of 56 Council Study Session Short-Term:3 months • Request additional focus by ODOT on freeway maintenance around Exit 14 (Public Works) • Identify a place for the Ashland welcome sign with a private business partner on Ashland Street (Mayor Graham and Councilor DuQuenne) and install it (Public Works) • Place banners on light posts along Ashland Street from Walker Street to the 1-5 overpass including regular Ashland banners and holiday decorations (Public Works) • Median re-design process with implementation starting at Exit 14 and moving into town (White Rabbit has offered to partner with the City to host a design workshop to bring the ideas submitted by local residents together into an actionable design) • Focus public art attention on this side of town with a request for specific recommendations by the end of 2026 (Public Art Advisory Committee) • Remind local businesses (throughout Ashland) of their maintenance responsibilities in park rows and sidewalk areas (Economic Development staff/Ashland Chamber of Commerce) • Focus weed abatement enforcement on this section of town (Code Enforcement staff) Mid-Term:6 months • Work with the neighborhood to develop a district name for this section of town similar to Downtown, University District, Railroad District and work to strengthen its sense of identity through clean ups and beautification efforts - Croman District has been used, but maybe Gateway District? (Community Development staff,Councilor DuQuenne, Mayor Graham) • Identify how to put additional near-term focus on economic development in this area (Economic Development staff) • Support OHRA with their neighborhood clean-up efforts (Councilor Kaplan - Council Liaison to OHRA) Long-Term: 1-5 years • Determine whether to leverage mechanisms,such as an Urban Renewal District,Tax Increment Financing, etc.to spur economic growth and workforce housing in this areas (City Council with support of City Manager and Community Development staff) • Develop and implement a plan with ODOT to beautify the overpass over the train tracks (Public Works, Public Art Advisory Committee) Page 3 of 31h , Page 16 of 56 ASHLAND &-® pr, �" �', .. '� ! '' 1 ,+ 5F` s ` e` r~ v'� .N±• r. fir. J_ 01 a I C 'I*ty Counci* l Stu Sessi* on COUNCILOR DUQUENNE & MAYOR GRAHAM PR The City of Ashland undertake a coordinated E this section of town. • A • • Y Eri'VlId su i ♦ ifli8fn8th FBirS City Center .;. S. Oregon Univ. o . �► rrd�i�_ � � A Y c� 4� Y yYi ��F ain .�`4Y 4� a Y e L 4 , iSU sk } yr O 1 � aYT' aw- - ✓, _ a i - } s rc• � City of Ashland Momentum is already bu Building on recent succ ----� --------------------- j .•=- Mks. �.. ,� .r ,•. 41 c z� t 1Job - yh� 4�j i 1 •' j MEMO A s h y �t 0 REG0li +� 57 �� 1► it + �4 as �� �• l — AR Short-Term: id-1 Welcome sign Decorative banners Median design Maintenance and weed abatement Long-Term: Beautified overpass Strategic redevelopment " Lasting public investment A gateway that reflects Ashlar � A stronger first impression. A stronger neighborhood. A stronger Ashland. In Ashland, we are Better Toget� QUESTIONS? VI Council Study Session Data July 20, 2026 Financial Policies Mayor and Council TIME ESTIMATE 60 minutes CATEGORY Staff Direction - provide direction to staff on the body's desired next steps. SUMMARY This item was requested by Councilor Dahle and Councilor Bloom to appear on the agenda. For two consecutive years, the City's audited actuals General Fund expenditures have exceeded actual revenues, and the General Fund ending balance has declined from a peak of$18.4 million in FY20 to an estimated $13.1 million by the end of FY2026. This is a clear and continuing trend confirmed by the City's own audited financial statements and June 2026 staff forecasts. The City's Financial Management Policies (Resolution 2023-09) already state the right principles that current expenditures should be financed with current revenues but the policy language is ambiguous enough to allow good-faith disagreement about compliance, and the fund balance policy has a wide gap between its 16.67% floor and 50% ceiling with no defined action in between. This item asks Council to direct staff to close that ambiguity through clearer policy language, stronger quarterly reporting, and a funded path back to a healthy reserve and dedicated capital fund. This is also a community trust issue: Ashland residents have a right to a General Fund structure that clearly shows where every dollar goes, this year and in the years ahead. A related, no-new-cost step is available today: the City already pays for full transaction-level transparency in its OpenGov platform, and enabling that existing feature for the public would reduce records-request burden at no new cost. POLICIES, PLANS & GOALS SUPPORTED • Resolution 2023-09, Financial Management Policies: General Fund current expenditures and fund- balance provisions • GFOA Best Practices: Achieving a Structurally Balanced Budget; Fund Balance Guidelines for the General Fund; Long-Term Financial Planning; Budget Transparency; Adoption of Financial Policies • Council goal of long-term fiscal resiliency and transparent, accessible public budgeting, including transaction level visibility into City spending BACKGROUND AND ADDITIONAL INFORMATION • Resolution 2023-09's fund balance policy sets only a 16.67% floor and a 50% ceiling, with no defined action in between and no clear rule for how one-time fund balance appropriations interact with recurring operations, leaving room for a budget to decline year after year without tripping a policy response. The City's net pension (PERS) liability has also grown 49% in three years ($24.5M to $36.6M, FY2022- FY2025) and is not clearly defined within the multi-year forecast. • Resolution 2023-09 already states the right principle, current expenditures financed with current revenues and it echoes GFOA's own structural-balance standard almost word for word. The policy just isn't specific enough to enforce itself. • The General Fund ending balance peaked at $18AM in FY2023 and is projected to fall to $13.1 M by the end of FY2026. General personnel costs have grown 28% since FY2022 against about 7% on-going revenue growth (excluding Parks, which was added to the General Fund in FY24), and the Reserve Fund sits at roughly 43% of its policy target. Page 1 of 3 Page 28 of 56 �a (^ mnvil st»( v q�cc nn • The City already pays OpenGov for a Transparency and Reporting module (continuously since at least 2018), but the public-facing view still shows only department-level summaries, not the line-item detail the platform is built to provide. Enabling it is a configuration change, not a new cost, and should reduce the volume of public records requests while increasing public trust. FISCAL IMPACTS • Adopting the motions below has no immediate General Fund appropriation impact. Direct staff reporting and policy-drafting work to be absorbed within existing Finance Department and City Manager's Office work plans. • OpenGov transaction-level detail requires no new procurement. It is a configuration change to a Transparency and Reporting module the City already owns and has paid for since at least 2018. It should reduce, not increase, staff cost over time by cutting the volume of public records requests filed for information that would already be visible online. • Updating funding and use policies for the Dedicated Capital Fund is a structural/accounting change and does not itself require new appropriation. • BN2027-29 budget include a transfer to the Reserve Fund and to the new Capital Fund, with final amounts subject to Council discussion and approval as part of the BN2027-29 budget planning and adoption process. • Staff time: preparing the standing Policy Compliance and FTE Staffing sections of each Quarterly Financial Report, the 110-day best-practices report, and the 110-day consolidated Financial Policies Manual will require Finance Department and City Manager's Office staff time; the extent should be scoped by staff and may be reflected in future work-plan discussions. SUGGESTED ACTIONS, AND/OR OPTIONS Motion 1: I move to direct the City Manager and Finance Director to return to Council no later than the September 15, 2026 Business Meeting with a resolution amending Resolution 2023-09 to: (a) update language for clarity and enforcement; and (b) replace the single 16.67% floor/50% ceiling structure with a three-zone General Fund balance framework (16.67% hard floor; below 20% triggers a mandatory corrective action plan; 20%-37% is a healthy target zone requiring no action; above 37% triggers a mandatory transfer to the Reserve Fund and new Capital Fund), with the specific 20%/37% thresholds subject to Council discussion. Motion 2: I move to direct staff to incorporate a standing Policy Compliance section into all future Quarterly Financial Reports to Council that affirmatively identifies any fund or department that is in violation of, or at reasonable risk of violating, an adopted financial policy within the next three fiscal quarters, and requires the City Manager and Finance Director to present a corrective action plan to Council within 60 days of identification. Motion 3: I move to direct staff to add a standing FTE Staffing Report to every Quarterly Financial Report, showing budgeted versus filled positions by department, broken into management and non-management classifications, with any year-over-year variance exceeding 5% specifically called out and explained. Motion 4: I move to direct staff to establish a dedicated Capital Fund separate from the General Fund, and to provide that no General Fund dollars shall be appropriated for capital expenditures on a going-forward basis, with capital projects funded from the Capital Fund or other dedicated capital financing sources only. Motion 5: I move to direct staff, in developing the proposed BN2027-29 budget, to include a transfer to the Reserve Fund and to the Capital Fund, with the goal of an unrestricted and undesignated General Fund balance of 25% of operating expenditures, with final amounts subject to Council discussion and approval during BN2027- 29 budget adoption. Motion 6: I move to direct staff to return to Council within 110 days with a report on updated financial policies and recommended best practices, including the target-zone reserve framework, quarterly disclosure protocol, capital funding policy discussed today, and clarification of PERS/pension liability trends into all future multiyear General Fund forecasts. Motion 7: 1 move to direct staff to develop and produce, within 110 days, a consolidated Financial Policies Manual summarizing all pertinent City financial policy considerations, including a full list of relevant resolutions Page 2of3 Page 29 of 56 W% Council Studv Session and policies and a summary of the City's cost allocation methodologies. Motion 8: 1 move to direct the City Manager and Finance Director to enable transaction-level ("checkbook") detail in the City's OpenGov Transparency platform, viewable by the public down to the individual line-item transaction, and to report back to Council within 60 days on implementation status. REFERENCES &ATTACHMENTS 1. Financial Resiliency -Council Presentation Page 3 of 3 Page 30 of 56 e r 6 ' ND Or- A' Financial Resiliency: FixingAshland's Financial Policy Reform — Council Business Meeting I July 21, 202 Executive Summary • Structurally imbalanced: for two years, audited actual General Fund exper actual revenues, and the adopted FY2026 and FY2027 budgets project the ( • Real decline, not just optics: the General Fund ending balance has fallen fr, estimated $13.1M (FY2026). • The policy goals are right; the language isn't: Resolution 2023-09 already just doesn't define them precisely enough to give Council, staff, and the Citi enforceable understanding of what compliance looks like. • This item asks Council to close that gap: clearer policy language, an early- a funded path back to a healthy reserve and dedicated capital fund, each • There's also a fast, no-new-cost win available today: the City already pay transparency in our OpenGov platform. Enabling this capability for the publ at no new cost. • It's a community trust issue: Ashland residents have a fundamental right t clearly shows where every dollar comes from and where it goes in real timE the years ahead. What We're Tryina to Ach uo;. c • Long-term fiscal resiliency and health — a General Fund that can c shock, or a revenue cliff (like the Food & Beverage Tax sunset in 203C mode. • Accurate, proactive forecasting — multi-year projections built into growing obligations like PERS, not produced mid-biennium after the • Policy language that means the same thing to everyone — Council and the Citizens' Budget Committee working from rules specific enol faith disagreement about compliance. • Community trust and visibility — the public's right to see, in plain to dollar goes, down to the individual transaction, using tools the City c W A, it SECTION 1 How We Got Here Why today's numbers didn't arrive without warning A Policy With Good Intentions and a Wide- • Resolution 2023-09 says the City "will finance all current expenditurE fund balance policy built to enforce that only sets a floor (16.67%) ar action in between. • That gap of roughly 33 percentage points, or somewhere in the ranc expenditure levels is wide enough for a balance to decline year aftE policy response. • The Citizens' Budget Committee and the Budget Officer can adopt a that gap without it being flagged to Council as a compliance conce • Several past Budget Committee discussions acknowledged that ad( exceeding revenues. This is a known, discussed dynamic, not a surpi • None of this reflects bad faith by any individual. It reflects a policy th precision to give whoever is building the budget a clear, enforceablE �r The Same Dollars Get Counted as "New" R, • Government budgeting requires beginning fund balance ("carryforward' that is standard, required accounting, not itself a violation. • But Resolution 2023-09 also says fund balance appropriation should be expenditures such as capital projects," not to backfill recurring operatior doesn't say how those two statements interact. Fiscal Year Carryforward Counted as GFRevenue FY2021-22 actual $9.5M w FY2022-23 actual $13.6M w c FY2023-24 actual $18.4M t FY2024-25 actual $17.1M FY2025-26 actual $15.3M Source: City of Ashland Annual Comprehensive Financial Report documents. R OFFIALI&cP A Growing Liabilitv We Need to Understam • The General Fund cash balance isn't the only part of the picture that's inc contributors of personnel costs is the City's net PERS pension liability. Clel are liability is, what we expect it to be, and if we can take action to reduc Fiscal Year Net Pension Liability . - FY2022 $24.5M — FY2023 $29.3M +$4.8M FY2024 $36.1M +$6.8M FY2025 $36.6M +$0.5M • Going forward, PERS liability trends should be a separate line in every mu Motion 6 directs staff to build this into future reporting. Source: City of Ashland Annual Comprehensive Financial Reports (ACFR), FY2022-FY2025, net activities combined. CIJ� SECTION 2 Why It Matters The policy already says the right thing — it just doesn't say it clec What Resolution 2023- 09 Alreadv Says, Ai "The City will finance all current expenditures with current revenues. practices that balance current expenditures through the obligation of I fund balance or retained earnings will be solely for the purpose of one- projects." — Resolution 2023-09,Budgetary Policies (adopted Ma • This language is exactly right in principle; rather, it echoes GFOA's core almost word for word. • What it doesn't define: what "current expenditures" and "current revent where beginning fund balance is a required revenue line; who determi next if a budget doesn't comply. • Without that detail, the same sentence can be read two defensible wa faith. This is exactly the gap this item asks Council to close. effa�r � Togdha This Is a National Best Practice. Not a Loca "GFOA recommends that governments maintain structural balance where recurring revent expenditures in the adopted budget...For a variety of reasons, true structural balance may not i In such a case, using reserves to balance the budget may be considered but only in the conte replenish fund balance, and ultimately remediate the negative impacts of any other short-to Further, the plan should be clear about the time period over which returning to structural balanc negative impacts of balancing actions are to occur. — GFOA Best Practice,Achieving a Structurally Balanced Budget (approved Feb.28,2012) — gfoa. balanced-budget • GFOA is the professional standard-setting body for local government its best practices are what Ashland's own auditors and finance profe: • Clarifying our policy to match this standard isn't inventing a new, stric between what Ashland already says it wants and what the policy acts • And underneath the accounting, this is a community trust issue: Asl open a budget document and see, in plain language, whether the Cit have to reconstruct that answer themselves from multiple line items. W A, it SECTION 3 Current Trends & Forecast, What the numbers show — and what they don't yet show General Fund Balance: A Real DecIkL 20.0 GF ei $18.4M $17.1M FY20 17.5 the e $15.3M 15.0 year: $13 -- 13.1 M v 12.5 IS It ji M ever) m 10.0 $9 5 capii u' ..._.16,67% policy floor..... -.- FY25-27 basis)___________________________ 7.5 the L from $5.OM $5.1 5.0 The k polic 2.5 t GF Ending Fund Balance (actual) how( With one-time capital/equipment transfers added back 0.0 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 (est.) Source: City of Ashland Finance Dept. (FY19-FY25 actual, ACFR basis); FY26 estimated from ye /i The Structural Engine: Personnel vs. Rever t GF On-Going Revenues* • GF pi GF Personnel Services* from 140 rrevei 0 130 +28%(FY22-FY25) (eXC l brou BN27 120 inclu Publi v 110 +7%(FY22-FY25) redu v expe 100 • This projE behii FY22 FY23 FY24 FY25 slide. Source: City of Ashland ACFRs FY2022-25 (audited). *Excludes Parks Department, which was brought into General Fund in FY24. /�cP The Reserve Fund Hasn't Kept Pace With It t Reserve Fund actual balance �——————.♦ • Reso Policy target (10% of GF expenditures) targE 4 $4.7- Ln aboL 3 Pollc U Balai that � 2 the no di L N thres a 1 GF bl —43% of policy target Rese ° comp FY21 FY22 FY23 FY24 FY25 Apr'26 FY27 (proj.) (-$6: targ( discr Avail& Staff's Own Forecasts Show the Same Trer • On June 3, 2026, staff presented two GF forecast scenarios (Best C and the Parks Commission. • Both confirm the balance keeps declining; neither models Reserve • Best Case: balance falls below the policy minimum by FY2030. • Worst Case: balance falls below the policy minimum by FY2028. • Staff's own numbers, even before applying today's proposed polic, conclusion this item is built around. Source: Forecast for General Fund, Scenarios 1 & 2, presented to joint Council/Parks Commissi, GJ� SECTION 4 Actions to Take Eight staff directions, each with a deadline Motion 1 - Clear, Enforceable Policy Langu "The City will finance all current expenditures with current revenues. practices that balance current expenditures through the obligation of I fund balance or retained earnings will be solely for the purpose of one- projects." — Resolution 2023-09,Budgetary Policies (adopted Ma Improve Language so that: • Define recurring vs one-time. Removes the single biggest source of ambiguit • Ban recurring use explicitly: Not implied, stated. • Require affirmative disclosure. Any planned use has to be called out in the bi balance plan, not left for someone to notice later. Grounded in GFOA Best Practice: Achieving a Structurally Balanced Budget — gfoa.org/materi move to direct the City Manager • • Finance Director to return to Cj • Business Meeting with • resolution amending Resolution 2I 1 policy language. IIFFIAL& CIeffa Joge&a Motion 1 (cont.) — A Target Zone Not Just i Today (—FY26) BELOW • • • 01 • VE HEALTHY TARGET ZONE TRAN Restoration required AC iNE to Reserve 16.67% 20% 37% Trending toward (FY27-28 if unaddressed) • Today's policy has only two triggers, 33 points apart: 16.67% (floor) and 50% (transfei years inside that gap without tripping either one. • Proposed structure: below 20% --* mandatory corrective action plan; 20%-37% --* hE 50%) --* mandatory transfer to the Reserve and Capital Funds. • The 20% / 37% figures area starting point for Council discussion, not a final numbE GFOA, Fund Balance Guidelines for the General Fund; GFOA, "Should We Rethink Reserves?"Go 99VALI& CIeffa Jogetha Motion 2 — Early-Warnina Lanauage in Qu Proposed language: "Each Quarterly Financial Report to Council shall includE affirmatively identifies any fund or department that is in violation of, or at reap financial policy within the next three fiscal quarters. Upon identification of suct and Finance Director shall present a corrective action plan to Council within 6 options for Council's consideration and appro, • Right now, nothing in policy requires staff to proactively flag a developinc issues surface only if someone asks the right question at the right meetir • A defined "reasonable risk within 3 quarters" standard, paired with a 60-1 consistent with how comparable-size municipalities and state oversight warning disclosure. move to direct staff to incorporate the Policy Compliance reporti requirement into a// future Quarterly Financial Reports to Council, t# updated financial policies. /�cP - Standing FTE Staff ina Re _ - 2 • Add a standing FTE Staffing Report to each Quarterly Financial RI positions by department, broken into management and non-mc • Specifically call out any year-over-year variance exceeding 5' threshold used in local government budget-variance reporting c discussion. • This gives Council the same visibility into workforce trends we're Personnel is the largest cost driver in the General Fund. I move to direct staff to add a standing FTE Staffing Report — bud,#, monagement/non-monagement classification, with variances ovei ji Financial Report. J� - A Dedicated Capital Fu ne • Direct staff to develop funding and use policies for the dedicate( • Going forward, no capital projects shall be expensed to the Gen( funded from the Capital Fund or other dedicated capital financii • This directly addresses the "it's just capital spending" question fr spending is fully walled off from the General Fund, the two trend: move to direct staff to develop updated funding and use policies i provide that capital projects shall be budgeted and implemented with, fit 0 Motion 5 — Fund the Reserve and Capital F • Direct staff, in building the proposed BN2027-29 budget, to inclui Fund and to the new Capital Fund, such that the General Fund w undesignated balance of 25% of average annual expenditures fc • This percentage is a starting point for Council discussion, not a f amounts depend on the BN2027-29 revenue and expenditure pii • The goal is to move the Reserve Fund meaningfully closer to its K one biennium. balanceI move to direct staff, in developing the proposed BN2027-29 budget, Fund and to the Capital Fund such that the General Fund maintaims amounts subject to Council discus.l �r Motions 6 & 7 — Two 110- Day Reports Back • Motion 6: direct staff to return within 110 days with a report on updated recommended best practices, including the target-zone framework, q capital funding policy, and incorporation of PERS/pension liability trenc forecasts, discussed today. • Motion 7: direct staff to develop and produce, within 110 days, a consol single reference summarizing all pertinent City financial policy consid( relevant resolutions and policies, and a summary of the City's cost allc I move o direct staff to return • • . . Motico, , %-� - Turn On the Transaarencv Tool The City has paid OpenGov for a Transparency and Reporting module continu underlying vendor relationship dating to 2017), most recently renewed through Ju shows revenue and spending summarized by department and category only, not h detail the platform is built to display. • This isn't a new purchase. It's a configuration change to a tool the City already subscribes • It should reduce cost, not add it:when residents can see individual transactions directly, tl• for that same information. This should meaningfully cut staff time spent fulfilling records re by default. • occasional line-item corrections are a normal part of bookkeeping in any organization tl just the summary totals, is exactly the kind of transparency that builds public trust. Financic feature of good government, not a risk to manage around. Source: OpenGov Order Forms, City of Ashland — Contract 2019-099 (eff. 101112018); Contract • - to direct the City Manager • • Finance Director to enable • the City's OpenGov Transparency platform, viewable by the publij transaction, and to report back to Council within 60 days i CIJ� Timeline at a GIA, %ww • Today: Council direction on the motions above. • Within 60 days: OpenGov transaction-level ("checkbook") detail enabled fc implementation. • September 15, 2026: revised Resolution 2023-09 returns to Council. • Early-November 2026: updated financial-policy/best-practices report (inc Financial Policies Manual return to Council. • BN2027-29 budget process: Reserve Fund + Capital Fund transfers conside • Every quarter, going forward: new Policy Compliance and FTE Staffing sect Reports once updated financial policies are in place. �r QUESTIONS?