Financial advisors tell Junction City it can ‘close that chapter’ and begin reinvesting

Consultants from Columbia Capital told the Junction City Commission that the city has rebuilt fiscal stability since the 2011 fiscal turnaround and can now consider reinvestment in staff and infrastructure. The firm summarized its fiscal sustainability report and recommended steps the city could take to protect its credit rating while investing for the future.

“You can officially close that chapter of the city's history,” Columbia Capital managing member Jeff White told commissioners, describing a long‑running recovery that the report says restored reserves and improved debt metrics. The presentation noted Junction City’s Standard & Poor’s rating of A+ and showed the city’s general‑fund balance and debt service trends.

Columbia Capital recommended the commission pursue a target general‑fund balance in the 25–30% range of expenditures over the coming years, maintain conservative debt metrics (total debt under 90% of governmental fund revenue and debt service under 9% of expenditures) and consider continuing the current practice of shifting levy revenue from a debt fund to the general fund as legacy debt retires. Jim Pritchard, the firm’s financial lead, said much of the city’s large legacy debt will be repaid over the next decade, creating an opportunity for pay‑as‑you‑go capital and for a responsible borrowing program if the commission adopts clear debt policies.

Consultants urged the commission to build internal capacity before launching a large capital program: they recommended a new capital‑projects team, a compensation study to address recruitment and retention gaps, and a phased increase in staffing where department heads identified needs. “Your staff does not have the capacity to take on a lot of additional work,” Columbia Capital consultant Steve Rogers said, recommending a focused project‑management group to deliver deferred maintenance and street work.

Funding options discussed included a continued levy shift (as debt service falls) and pursuing renewal of the city’s 1% sales tax when it expires in 2030. The consultants said the sales tax has grown during the COVID era and, if trends continue, could yield material dollars by 2030 to pay for capital and reserves. Commissioners asked about timing to target a higher rating; Columbia Capital advised that improving cash balances to the 25–30% target over roughly five years combined with falling debt service would give the city the strongest case to seek an upgrade.

The commissioners heard that the consultants will include implementation templates and appendices in their written report; the city will use those materials if it decides to adopt the phased staffing, capital‑planning and reserve policies presented.