The Dalles City Council on June 23 adopted Resolution No. 25-028, approving a supplemental budget that adds $50,000 in transient lodging tax (TLT) revenue to fulfill an allocation to Northern Wasco County Parks and Recreation and transfers FAA grant revenue from the airport fund into the city’s capital project fund as required by recent audit guidance.

City Manager Marc Klebs told the council transient lodging tax revenue for the year exceeded estimates, and under the ordinance in effect for the fiscal year a portion of those revenues must be dispersed to Northern Wasco County Parks and Recreation; the supplemental budget formalizes an additional $50,000 distribution. Klebs said the new ordinance changes allocation going forward but the supplemental covers this fiscal year’s reconciliation.

Klebs also explained the airport-related change: the city had recorded FAA grant revenue inside the airport fund, which is jointly owned with Klickitat County. The city auditor determined those FAA dollars should be recorded in the city’s capital project fund because the grants are specific to the city’s accounting. Klebs said staff expects to repeat similar accounting moves until a revised joint operating agreement with Klickitat County is finalized.

Councilor Richardson moved to adopt the resolution; Councilor McLaughlin seconded. Council discussion included a reminder that state law requires a notice public hearing when a supplemental budget increases an airport’s operating budget by more than 10% — staff noted the meeting provided opportunity for public testimony and no members of the public chose to speak on the item.

Klebs said staff is working with Klickitat County to explore whether a Q-Life-style intergovernmental structure would suit the airport’s long-term governance and that more information will be presented after county counsel and local stakeholders have reviewed options.

The resolution passed; staff will implement the accounting changes and disburse the TLT allocation before the close of the fiscal year.