Council to receive updates on food and beverage tax, consider future ballot measures, and assess citywide cost-cutting measures
By Steve Mitchell, Ashland.news
The Ashland City Council will hold a joint business meeting with the city’s Parks & Recreation Commission on Tuesday, Oct. 21, to review progress on the city’s parks and recreation open space plan, citywide staffing adjustments, and city finances.
Food and beverage tax update
According to meeting documents, the council is set to receive an update on Ashland’s food and beverage tax, a 5% tax on prepared foods and non-alcoholic beverages sold at restaurants, grocery store delis, and coffee shops in the city. Meeting documents note that Ashland takes roughly $3 million annually through the tax, which supports park improvements and Ashland’s infrastructure.
The documents note that 25% of the revenue goes to parks and recreation capital projects, including land acquisition, planning, and rehabilitation. Meantime, 73% funds street repairs and maintenance, while 2% is retained in the city’s general fund for administrative costs.
In 2023, voters rejected a referendum that would have redirected a majority of the funds — 75% — more broadly for parks, open space, recreation, and senior services, according to ballot information.
According to the meeting documents, the city’s food and beverage tax money has funded or helped fund several local projects, including the Japanese Garden, Garfield Splash Pad, and a major street reconstruction on Hersey and Ashland Streets.
The meeting documents note that the city staff is looking for direction from the council on “potential future ballot measures.”
City finances, service, and staffing adjustments
According to a report from Sabrina Cotta, city manager, the city is continuing to balance rising costs and limited revenues.
In a presentation to city leaders from Cotta and Rocky Houston, the city’s Parks & Recreation director, the Parks & Recreation Department, and the city have adjusted services and staffing levels.
This biennium, she wrote that city leaders approved increases to public safety, wildfire protection and a temporary parks fee. Those measures were intended to provide services while not further straining the general fund.
The Parks & Recreation Department has reduced mowing frequency in most parks and natural areas, put out fewer trash cans, and converted to bear-proof receptacles at some parks. Additionally, the department has cut irrigation by 20%, closed restrooms earlier and brought on fewer temporary and seasonal staff.
Citywide, other departments have implemented cost-cutting measures.
Several other departments are adopting cost-saving and modernization strategies. The city’s municipal court is moving toward a digital process, reducing public hours and cutting a part-time position.
The city’s Fire & Rescue is eliminating one position, redistributing training duties, and participating in a regional fire study to explore new staffing models. The police department is transitioning to digital records and reducing staff by one full-time position. The city is also migrating software systems to cloud hosting and is cutting two full-time positions and a part-time position.
In finance and human resources, the city is implementing a new payroll and utility billing software to streamline operations and reduce manual workloads.
The community development and public works office is cross-training staff and expanding it’s permitting platform for broader use.
Financial context
City officials emphasized that the changes are part of a broader plan to align staffing and services with funding. Like other Oregon cities, Ashland is grappling with the reality that service expectations exceed the revenue generated to pay for them through property taxes.
Study session
The city will have its regular study session on Monday, Oct. 20. The agenda starts with an informational presentation city renewing its long-term wholesale power agreement between the Ashland Electric Utility and the Bonneville Power Administration.
The purpose of the presentation is to inform the councilors about the contract so that they can authorize Cotta to sign a new contract with Bonneville. According to the meeting documents, the electricity the city purchases is 95% carbon-free.
Potential ballot measure
City leaders have asked to have a discussion about a potential ballot measure proposing that any new tax or utility fee be subject to voter approval. According to city documents, an Ashland resident has started the process of getting the measure on the ballot for the May 2026 primary election.
The meeting documents note that the discussion will include an overview of procedures under the state’s law, which outlines the responsibilities of the people and the public bodies, and how to craft clear, impartial ballot language.
Monday’s study session starts at 5:30 p.m., Tuesday’s business meeting at 6 p.m. Meetings are held in the Ashland City Council chamber at 1175 E. Main St. Proceedings are cablecast live on Channel 9 (or 180), streamed online at rvtv.sou.edu (RVTV Prime), and posted online the day after the meeting.
Email Ashland.news associate editor Steve Mitchell at stevem@ashland.news.
