Eugene City Council approves Fire Service Fee to generate $10 million annually for fire and emergency services

Eugene, OR – The Eugene City Council approved a new Fire Service Fee during its February 10 work session, voting 5-3 in favor of the measure. The fee is expected to generate $10 million annually to support and expand the city’s fire and emergency medical services.

Revenue from the Fire Service Fee will be allocated strictly for fire and emergency medical services, the administration of the fee, and an income-based assistance program. The fee structure is tiered based on building size, with a median single-family home charged $10 per month and a median commercial customer paying $38 per month. An estimated $350,000 annually will be set aside for low-income assistance.

Fire Chief Michael Caven emphasized the importance of the fee, stating that it will help meet the growing demands for emergency response services. The funding will allow for the creation of two-person squads to improve response times for medical emergencies, small fires, and wildfires, particularly in the downtown core and during critical fire weather conditions.

The new funding model shifts $8 million in fire and emergency medical service costs from the General Fund to the Fire Service Fee while adding $2 million for new services. This change reduces the city’s required budget cuts for the upcoming biennium from $11.5 million to approximately $3.5 million, lessening the impact on other community programs.

Without the fee, city officials warned of potential cuts across all departments. During a January 15 budget priorities session, the City Council instructed the City Manager to present two budget reduction scenarios to address the projected $11.5 million deficit in the absence of additional revenue. These scenarios were meant to illustrate possible service reductions rather than serve as a formal budget proposal. The City Manager’s proposed budget for 2025-2027 is expected to be presented in the spring.

Property taxes currently account for 71% of Eugene’s General Fund revenue, supporting services such as police, fire, libraries, parks, recreation, community development, and facility maintenance. However, property tax growth remains limited under Oregon’s tax system, prompting the need for alternative funding sources like the Fire Service Fee.