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Council directs staff to keep property tax rate unchanged and raise municipal‑utility‑district public‑safety fee in proposed 2025‑26 budget
Summary
Council directed staff July 14 to prepare a proposed 2025–26 budget that keeps the city’s property tax rate unchanged while increasing the municipal‑utility‑district public‑safety fee so MUD customers cover a larger share of police and fire operational costs.
The City of Josephine’s finance staff presented three budget scenarios July 14 and the council gave direction for the draft proposed budget: keep the city’s maintenance and operations property tax rate unchanged and raise the municipal‑utility‑district (MUD) public‑safety fee to more closely align the cost of police and fire operations with the customers who benefit from those services.
What was proposed: Finance staff showed multiple scenarios that mix personnel, part‑time firefighter staffing and police positions. Staff explained that 1 cent of property tax produces roughly $34,000 in annual revenue and that the council could choose different combinations of added positions, part‑time firefighters, and capital purchases to reach a balanced budget.
Council direction: After discussion, council members agreed to proceed with a proposed budget that keeps the property tax rate the same but increases the MUD public‑safety fee so that MUD customers (outside city limits) pay a higher share of police and fire operational costs. Staff also identified $100,000 in a proposed capital line for a food‑truck pilot and the council directed staff to use JCDC (redevelopment) funds for that pilot rather than general capital — a change staff will reflect in the proposed budget filing. Council also asked staff to present a proposed budget with those directions and return for later adoption; adoption will follow the statutory notice and adoption timetable.
Why it matters: Staff said the current MUD arrangement had been covering personnel only and not operating and maintenance costs. The consultants and staff emphasized the split of customers: roughly 30% of utility accounts are inside city limits and 70% are outside (MUDs); the proposed fee shift is intended to align payments with service usage. Staff noted the city must file a proposed budget on a statutory schedule and that the council’s direction informs that proposed filing.
Next steps: Staff will prepare a proposed budget reflecting the council’s direction and bring it back for formal adoption at the dates required by state law. The council did not adopt final tax or fee rates on July 14; those remain to be set during the formal adoption process.
