Estacada budget committee adopts $61.7 million budget, reallocates $600,000 from contingency to sewer and water work

Chair Paul Strobel presided over the Estacada Budget Committee meeting where members approved the 2025–26 city budget as amended and certified the property tax rate for collection.

Budget Officer Wagner presented the budget and told the committee, “I will just say right up front, I have 27 slides in case you're counting,” before walking through department highlights, capital projects and reserve plans. Wagner described the proposed total budget as “just over $61,000,000,” noting a 23% increase from the prior year driven largely by a planned $32,000,000 expenditure to begin construction of a new wastewater facility.

Nut graf: The committee approved the budget after an amendment that shifted $600,000 from the general fund contingency—$500,000 to sewer I&I (inflow and infiltration) projects and $100,000 to water system maintenance—to accelerate work staff and committee members said is critical to reducing unaccounted-for water and improving sewer system performance. The committee also certified the city’s ad valorem rate at $2.6749 per $1,000.

In committee discussion, members pressed staff on priorities and timing. Wagner described planned utility-rate increases and capital timing: water rates were proposed to increase 3.25%, storm sewer by about $0.06 per month, and sewer by $10 per month per equivalent dwelling unit (EDU). She said the sewer-plant construction is planned to break ground in late summer or early fall and estimated it would take about 27 months to complete.

Several members emphasized water loss and sewer infiltration as high priorities. One speaker urged contracting or focused programs to locate and fix leaks, noting that roughly 35% unaccounted-for water had been discussed by staff. Committee members agreed that directing contingency funds to I&I work and to water system maintenance could speed up leak detection, meter replacement and targeted repairs.

The committee adopted the budget with the amendment. The motion to remove $600,000 from general fund contingency and allocate $500,000 to I&I (sewer) and $100,000 to water system maintenance passed by voice vote. The committee later moved to approve the overall budget as amended and then certified the ad valorem rate at $2.6749 per $1,000; both motions passed by voice vote.

Wagner and other staff noted ongoing efforts to secure grants and low-interest loans for utilities, including forgivable portions of engineering and construction loans for the wastewater plant; she said the city had applied for additional state funding. Committee members also discussed hiring and staffing: two new FTEs were added in the proposed budget (a parks manager and a communications/public relations position, with the latter potentially filled via the Department of Defense SkillBridge program), and an additional facilities FTE was discussed but deferred for later consideration or a supplemental budget.

The committee also reviewed other capital priorities inside the adopted budget: application for a CDBG grant expected to bring about $800,000 toward a traffic circle at River Mill Road and Eagle Creek Road, park trail paving and ADA improvements, sidewalks and Lakeshore water-access planning.

Ending: The committee completed its review and returned the budget package to the City Council for adoption; staff will present the formal resolution and the certified rate to council in June for final action. Chair Strobel closed the meeting after committee members thanked staff for the presentation and for follow-up work on water and sewer priorities.