In May, the district had to take out a line of credit just to be able to pay its staff for the year, according to meeting materials. Interim Fire Chief Aaron Bustard said staffing costs alone are using up 110% of the district's revenues.
He said the district has struggled for months with budget issues due to apparent overspending.
"Any time that there's a lack of management of resources, things can either get overlooked or overwhelmed. And I don't know where we were at in that, but I feel like we had so much coming in with so little oversight or management that it was very easy for things to get missed," he said.
According to meeting materials, the district "under-budgeted in some line items" and "also over-forecasted the projected tax revenue" that provides the vast majority of its funding.
Last week, the board voted to fire its former chief, Charles Hanley, who oversaw the district鈥檚 budget. Hanley had been on paid administrative leave since May. He was fired with cause because an independent investigator found that three allegations made against him were sustained: covering up sexual harassment, bullying and interfering with a governmental promotion board.
The district operates three fire stations in Phoenix, Talent and unincorporated Ashland, serving over 23,000 people.
This financial problem means fewer staff and less ability for the district to respond to calls.
To try to address this issue, the district has canceled all overtime, reduced some benefits, is seeking out volunteer firefighters and will sell some of its equipment, among other measures.
Staff also recommended the board reconvene the budget committee and adopt policies that focus on budget sustainability.
Director John Karns said he saw, "Astonishing finances here. And what was even more astonishing is they're getting by the board. Absolutely asleep at the wheel."
Karns is a new board member, appointed after three out of the five members of the district's board suddenly resigned in March.
The district's staffing crunch is only projected to worsen. In February next year, 12 staff will be laid off because their positions are funded by federal grants, which will run out.
But Bustard said residents shouldn鈥檛 panic because the region receives support from other agencies, including the cities of Ashland and Medford and Fire District 3.
"If we were a standalone agency and there was no one to assist us, there was no partnership, then people should panic, because no one would be coming," he said. "We have been a really strong partner to other agencies through the years. They are being strong partners to us now. And that's what I would tell the public is that we're navigating this, but we're not being left on our own."
The board said it will continue to investigate how the financial situation became so dire.
"This is an initial assessment briefing," said Board Chair Greg Costanzo. "We are currently working on many other inquiries to figure out where money is or has been spent."
