After months of turmoil, things are beginning to look more positive for Jackson County Fire District 5.

While the district that serves over 23,000 people throughout the communities of Phoenix, Talent and unincorporated Ashland still has much work to do to resolve its financial woes and also deal with divisive personnel issues, signs of hope have emerged.

The district is moving ahead with plans to occupy the Phoenix Government and Public Safety Center downtown, plans put on hold for months while a lease agreement was being hashed out.

Despite early discussion of a planned $1-per-year lease for District 5, the Times reported that board members learned in more recent months that negotiations were made under former District 5 Fire Chief Charles Hanley to cover up to $3.5 million in project overages for the building that was built to replace a firehouse destroyed by the 2020 Almeda Fire. It was originally expected to cost just over $16 million, but final costs came in at more than $19.8 million.

Hanley was placed on administrative leave May 9, amid complaints of personnel issues and a union loss of confidence and terminated Aug. 6. A mostly new board of directors has been working since May to address everything from budget shortfalls and union complaints to possible criminal allegations against former employees.

Greg Costanzo, a District 5 board member, said early calculations showed FD5 faced annual lease payments of more than $100,000 for the public safety and government building. With uncertainty on the lease amount, board members had delayed occupancy. City of Phoenix officials, however, reported Oct. 8 that the final shortfall had come closer to $2.5 million, calling for lease payments of just under $72,000 per year.

Following the work session two weeks ago, District 5 board members voted to move forward with occupancy of the facility with an initial lease payment due Jan. 1, 2026. Board members voted 4-1 with board member Derek Volkart casting the lone “no” vote, noting concerns pertaining to contract legalities and final calculations. Volkart told fellow board members he would “certainly feel better if it were a little tighter on the legal front.”

Board member John Karns said it was “vitally important” to staff the Phoenix station, noting, “Even if we aren’t maybe 100% comfortable with payment … knowing the value of response times, it’s just important for this district to get in down there and have a presence.”

That has been a concern of Phoenix residents, with mayoral candidate Al Muelhoefer saying he has heard from members of the community who want the issue at the new public safety building resolved. The building will eventually be occupied by FD5’s Station No. 3 and also serves as Phoenix City Hall and headquarters for the Phoenix Police Department.

“I’d like to see Fire District 5 solve it. They have some heavy lifting to do,” said current Phoenix Mayor Terry Baker, who is running for re-election. 

“People still remember the Almeda Fire. Right now, there is no fire engine in the fire station,” Muelhoefer said. “They are concerned about property taxes since there’s no money in the fire district.”

Getting the lease agreement hammered out is a start, and there also was recent movement on securing an intergovernmental agreement with Jackson County Fire District 3 to take over administrative duties at District 5.

The plan, which will cost $15,000 per month, the Times reported, will bring substantial cost savings to FD5 and, district officials said, free up resources for firefighters and personnel. District 3 Fire Chief Mike Hussey will serve as chief for both districts. With District 5 board approval — which was unanimous — District 3 was scheduled to review the agreement Thursday, Oct 17.

Meanwhile, residents outside Ashland seek a resolution to the “browning-out” of Station No. 4 on Neil Creek Road near Emigrant Lake. The station has sat empty at times because of staffing woes.

Constanzo was blunt at the Oct. 8 meeting, which was attended by nearly 80 residents.

The board is “putting every minute into fixing this problem,” he told the audience. “It’s not an argument of not wanting to provide service. There is no money to pay for people to be there.”

This is another important issue that District 5 must address in the near term, but with room to breathe now on some of its other pressing matters, FD5 can hopefully concentrate on finding a path forward to relieve pressure on the board and also give tax-paying citizens a sense of stability and security they deserve.