Jackson County Fire District 3 administration and board members discuss the 2025-26 fiscal year budget. From left, JCFD3 Chief Financial Office Stacy Maxwell; Chief Mike Hussey; board member John Karns, board chair Greg Costanzo and board member Chris Luz. (Buffy Pollock / Rogue Valley Times)

Community members voice ongoing concerns about Station No. 4 near Emigrant Lake, reduced staffing levels 

Jackson County Fire District 5 officials adopted a $9.5 million budget for the 2025-26 fiscal year on Tuesday.

The budget was adopted almost as presented with a handful of small changes after fine-tuning personnel expenses, a contingency balance and a transfer from a capital projects fund, adjusting the proposed $9.809,000 budget, approved and forwarded May 20 by the district budget committee, to $9,584,000.

Officials said the budget represented a step forward for the embattled district while slowly working to remedy staffing shortages and wean the district from living off of borrowed funds and grant dollars.

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.

The district sought administrative assistance last summer from Jackson County Fire District 3 under an intergovernmental agreement which began 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 was officially terminated last August though the district continued to grapple with a pair of investigations — in which criminal implications were made — and financial instability prior to District 3 stepping in to help.

Hussey told board members Tuesday that the adopted budget would enable the district to move away from relying on debt and help to restore depleted staffing levels, albeit slowly.

Stacy Maxwell, chief financial officer for both districts, said much work had been done to create a balanced budget. At the time that District 3 stepped in to offer administrative support, Maxwell said District 5 bank accounts were “not enough to make payroll and all other obligations.”

A lack of financial audits has resulted in lenders not wanting to lend money — or others offering only high interest loans. Maxwell said the adopted budget would help the district continue “getting out of this hole” while rebuilding the district.

“This first year of transition is going to be tough. We get that,” Maxwell said.

“We’re doing everything we can to get out of this as quickly as we can, but it’s just going to take a little bit of time.”

To the theme of moving away from a reliance on debt or grant funding, anticipated funding from federal, state and other grant sources decreased from $2.4 million in 2023-24, two years ago, to only $4,000 anticipated during the 2025-26 fiscal year.

Revenues to be generated from bonds and other debt are down from nearly $1.98 million (2023-24) to no anticipated bonds for the fiscal year beginning July 1.
The district’s biggest expense — personnel services — reflects an ongoing reduction from about $8.2 million in 2023-24, to more than $6.9 million during 2024-2025; and just over $5.5 million — a 20% reduction — for 2025-26.

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 will decrease from $1.56 million during 2023-24 and $150,000 during the current year to no anticipated capital outlays for the coming fiscal year.

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

During the citizen comment portion of the meeting, district patron Jerry Lehman reminded the board that district officials previously suggested that Neil Creek Road Station No. 4 near Emigrant Lake, which has often been browned out since August 2024, would be staffed full-time during fire season.

He voiced frustration that staff from other stations could not be alternated to improve staffing at the Neil Creek location. Hussey explained that staffing levels were being addressed but that the smaller station had lower call volumes than other stations.

Community member Bryan Baumgartner applauded the district for ongoing efforts to stabilize the district but also voiced concerns about Station No. 4. While he agreed with moving away from  reliance on debt, he told board members it was “too much at once” and not feasible in a single fiscal year.

“We do not have all of our fire stations staffed, and we are short on firefighters,” he said.

“Since August of 2024, Station 4 has not been staffed 24/7 as it has been since the 1970s. We strongly encourage this board to take a hard look at this discrepancy.”

Board member Chris Luz , whose final board meeting was this week after being defeated during the May 20 special election, encouraged district officials to consider a merging of districts.

“I think, long term, the right way to go for the district … would be to consolidate with Fire District 3,” Luz said.

“It’s also a good idea to consolidate other small fire departments. … Consolidating the smaller units into one unit is a great way to go.”
A copy of the 2025-2026 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.