Jackson County Fire District 3 Chief Mike Hussey, who is providing contract services on behalf of his home district — Jackson County Fire District 3 — provided an overview of district revenues, debt and detailed ongoing efforts to conduct audits of district finances at Fire Station No.. 4 near Emigrant Lake in March. (Buffy Pollock / Rogue Valley Times)

In coming fiscal year, fire chief says district will live within its means and invest in people

Jackson County Fire District 5 is slowly making its way onto more solid and predictable financial footing after a tumultuous few years marked by budget and staffing struggles and other uncertainties, district officials say.

District 5 board members will hold a public hearing at 6 p.m. Tuesday to review the first proposed budget since Fire District 3 stepped in to help the embattled agency.

The district’s budget committee approved and forwarded a $9,809,000 budget during a May 20 budget meeting calling for slight staffing increases and setting the district up to live within its means, Fire District Chief Mike Hussey said.

Hussey, who serves at the helm of both districts, told the Rogue Valley Times the proposed budget is “a best faith plan” that will help to “realign the district” and “build certainty, solvency, and service delivery for the future.”

District 5 sought help last summer with financial and other struggles; District 3 took over leadership of District 5 on Jan. 1.

Organizational failures first came to light for DIstrict 5 in February 2024 when members of the International Association of Fire Fighters Local 2596 stated a loss of confidence in former District 5 Fire Chief Charles Hanley over a slew of personnel concerns.
In the months that followed, three board members resigned en masse, the Jackson County commissioners appointed their replacements, and the newly reassembled board placed Chief Hanely on administrative leave, and called for an investigation.
Hanley’s contract was officially terminated last August, though a pair of investigations — in which criminal implications have been made — and warding off financial insolvency have been a continued focus over the past year.

The proposed budget message focuses on “being fiscally responsible” and “reinvesting in programs while repaying debt obligations.”

“It took many fiscal years to develop the financial insecurity we are experiencing,” the budget message states.

“However, with continued determination, sound fiscal policy, and small sacrifices the recovery can be achieved in a few budget cycles.”

Comparison of various budget expenses shows a focus on staffing and a conservative approach to things such as capital projects and utilizing debt.
In a nod to one of the issues raised by board members in recent months — using nonrenewable grant dollars used to fund staffing increase — anticipated funding from federal, state and other grant sources decreased markedly from $2.4 million in 2023-24 to just $4,000 in the proposed 2025-26 budget.

Likewise, revenues to be generated from bonds and other debt fell from nearly $1.98 million in the 2023-24 budget to $3,000 for the upcoming fiscal year beginning July 1.

The district’s biggest expense — personnel services — shows a reduction from about $8.2 million in 2023-24 to more than $6.9 million during the current (2024-25) fiscal year and just over $5.5 million — a 20% reduction — for the proposed 2025-26 budget.

The proposed amount allows for a 3% cost of living increase for personnel and funding of additional seasonal firefighter positions for three to four months during summer wildfire season. Addressing staffing ratios at district stations, an agreement with the labor union in March continues to allow a short-term reduced minimums on district rigs to improve staffing ratios.
In another effort to minimize new expenses, capital outlays went from $1.56 million during 2023-24 to $150,000 during the current year, with just $4,000 proposed for the upcoming fiscal year.

Hussey credited his administrative team with devising a balanced budget and an ongoing focus on successes and achievements versus challenges and strains.

Under District 3 management for just six months, Hussey said District 5 has become audit-ready for required state budgetary reports for the past three fiscal years; the district fleet has been assessed and realigned to meet district needs; and a two-year training program has been executed, focused on skill development and promotional readiness.

Hussey said this week, “the plan forward requires that we all live modestly and within our means” but will allow an investment in personnel and gradual staffing increases as things continue to improve.

“As we gained clarity of past budgeting practices, we have built strategies going forward. … We are still asking some tough questions, but I think that what is most important is that we have gone back to a one year budget process and that the revenues and expenditures balance,” he said.

“We’re not out of the woods, but we do have a plan moving forward. … There’s a lot at stake for us in getting right.”

Tuesday’s meeting will be held at District 5 headquarters, 5811 South Pacific Hwy., between Phoenix and Talent.
A copy of the proposed budget is posted to the fire district website.

Reach reporter Buffy Pollock at 458-488-2029 or buffy.pollock@rv-times.com. Follow her on Twitter @orwritergal.