During the Hermiston City Council meeting on September 22, 2025, the council received a detailed financial report for August, marking the second month of the fiscal year. The report highlighted several key financial metrics that will impact the city’s budget moving forward.

The city’s monthly revenues fell short of projections by $466,000, primarily due to changes in building fees and the timing of grant revenues. This shortfall raises concerns about the city’s financial health as it navigates the early stages of the fiscal year.

Expenditures from the general fund exceeded projections by $2 million. This increase is largely attributed to the transfer of restricted funds into a newly established building fund, aimed at enhancing transparency regarding dedicated funds within the building department. Additionally, departments such as the city council, airport, and non-departmental areas reported being over budget, driven by annual membership fees and ongoing projects at the airport.

The report also addressed seasonal impacts on the budget, noting that parks, utilities, and recreation expenditures were higher than expected due to the conclusion of summer activities.

A significant point of concern raised during the meeting was the city’s minimum fund balance requirement of 15%, which is based on the previous fiscal year's total expenditures. The city anticipates falling short of this requirement by approximately $200,000 by June 2026, largely due to a one-time transfer of $2.7 million that is not reflected in the current budget projections.

As the council moves forward, these financial challenges will require careful monitoring and strategic planning to ensure the city remains on a stable fiscal path. The implications of these discussions will be critical as Hermiston prepares for upcoming budgetary decisions and potential adjustments to financial policies.