City sets budget

Overall city spending is up due to jump in state shared revenue

City of Medford residents can expect to pay about the same for the city portion of their property taxes this year as last year.

On Tuesday, council members approved the 2024 city budget calling for total spending of $4,256,463 in the general fund. By comparison the 2023 budget called for total general fund spending of $3,861,140. The city budget also includes $801,000 for construction projects and equipment replacement. This is down from the $872,000 budgeted for 2023.

The city budget also projects spending $332,378 in debt service payments in 2024, which is also down from the $372,628 budgeted for 2023.

While spending on general city operations is projected to increase by more than 10% next year, the portion paid See MEDFORD on page 5 through local property taxes will be $1,917,749 which is up from $1,841,437 in 2023 and represents a 4.1% increase.

How the state determines shared revenue from the state sales taxes changed this year which saw the city’s base shared revenue amount climb by about $209,000.

City coordinator Joe Harris explained that amount is the new base and that it is projected to increase 2% more in 2025. A change in state law passed last June assigned a portion of the state sales tax to go toward shared revenue that is divided among municipalities and counties across the state.

In addition, the city is able to raise its local levy amount based on the amount of actual growth in the city over the past year. So far in 2023, there has been $2,219,300 in net new construction in the city, this is down from the nearly $3.1 million in new construction that took place in 2022 and $3.2 million in new construction in 2021. Over the past six years, the city has averaged about $2.3 million in new growth per year. According to state equalized value totals, the city of Medford increased in equalized value by about 12% from last year with a current equalized value of $417,153,600, up $44,970,300 from last year.

A public hearing was held prior to the start of the council meeting with no members of the public raising questions about the proposed budget.

The final tax rate for the city will be set later this fall as the levies from the school district, technical college district and county are all finalized. The tax bill property owners receive in December is a combination of all of these levies.

In other business, council members:

Received an update that the wastewater air diffusers came in on time despite the city being told they were back-ordered and to expect delays. Harris said it is noteworthy in today’s world given recent supply chain issues when items arrive when they are supposed to.

Received word that leaf pick-up will take place on October 23 to 25 with the city contracting with a company to vacuum up the leaves as in the past. Residents are asked to rake the leaves into the roadway prior to that Monday.