Hermiston council adopts supplemental budget to cover regional water and EOTech costs

Hermiston adopts supplemental budget to cover water system engineering and EOTech overages

The Hermiston City Council on June 23 adopted Supplemental Budget No. 2 for fiscal year 2024–25 to cover unanticipated costs in the regional water system and to move funds into the EOTech enterprise fund, Mayor (presiding) announced during a public hearing and staff presentation.

City Manager Smith told the council the regional water system budget needs “a little over $100,000” to cover higher-than-expected engineering and related costs and that the increase would come from the city’s contingency fund. Smith also said the regional water costs tied to the AWS/Amazon project would be reimbursed by Amazon. ‘‘Any of the costs related to those projects would be reimbursed by Amazon,’’ Smith said in response to a council member’s question.

The council also approved an adjustment to the EOTech fund. Finance staff reported materials-and-services expenditures for EOTech were higher than planned, including cleaning, janitorial utilities and costs associated with the barn project. To bring the EOTech budget into balance, Smith said the city would transfer money from the enterprise zone fund.

Why this matters

The supplemental budget packages midyear adjustments into the official fiscal plan and authorize the city to pay expenses that were not anticipated when the budget was adopted. Council approval also signals that the city expects reimbursement from its private-sector partner for the regional water work, shifting near-term cash impact to the contingency and enterprise zone funds.

Key details and council action

- The public hearing for Supplemental Budget No. 2 was opened, staff presented the proposal, and no members of the public testified. The hearing was then closed and council deliberated. - City Manager Smith described the regional water increase as ‘‘a little over a 100,000’’ and said the work included unexpected engineering efforts. - Smith said EOTech experienced higher materials-and-services spending partly due to the barn project and a water-main break; the city will transfer funds from the enterprise zone to balance EOTech. - Council adopted Resolution 23-79 (Supplemental Budget No. 2) by roll call vote; the motion passed unanimously, 6–0.

Discussion versus decision

Discussion: Staff explained the additional regional water engineering costs and higher EOTech materials spending and answered council questions about reimbursement and funding sources. Direction/assignment: None recorded beyond approving the budget adjustments and the described fund transfers. Formal action: Adoption of Resolution 23-79 to enact Supplemental Budget No. 2 for fiscal year 07/01/2024–06/30/2025; vote recorded as unanimous (6–0).

What staff said about reimbursement and timing

When asked whether the regional water system work was connected to the Amazon project, a council member asked, ‘‘Is that the project that is in conjunction or in partnership with AWS?’’ Smith replied, ‘‘That's correct,’’ and later said costs would be reimbursed when the project is complete.

Next steps

With the council’s approval the supplemental budget is recorded and staff may proceed with the contract and project expenditures described in the hearing. Any reimbursement described by staff will occur later as contractual milestones are completed.

Ending

Resolution 23-79 (Supplemental Budget No. 2) was adopted and entered into the record; no further public comment was offered at the meeting.