Ashland officials are preparing tough budget decisions as rising costs outpace limited revenue growth. City Manager Sabrina Cotta warns that essential services—including police, fire protection, and parks—may face reductions unless new funding solutions emerge. The city’s financial strain stems from Oregon’s 3% annual cap on property tax increases, implemented in the 1990s, which hasn’t kept pace with inflation or rising operational expenses.
Public discussions begin March 31 about potentially adjusting service levels and exploring new revenue streams. Ashland currently relies on utility bill fees ($1.50 for public safety, $3 for wildfire mitigation) that haven’t increased in years, diminishing their effectiveness. Unlike neighboring cities, Ashland lacks a dedicated parks fee.
The budget challenges coincide with separate financial pressures—water rates may rise 13.5% to fund a new treatment plant, while schools pursue a $10 million loan to address enrollment declines.
Key Points:
- Ashland faces service cuts due to revenue constraints from Oregon’s property tax limits
- Police, fire, and parks departments may see reduced service levels
- Utility fees haven’t kept pace with inflation, hurting purchasing power
- Public budget discussions begin March 31 to explore solutions
- Water rate hikes and school district loans add to financial pressures
- City officials seek to balance fiscal responsibility with community needs