Hermiston budget committee approves 2025-26 budget, sets general-fund rate at $6.086 per $1,000
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Summary
Hermistonbudget committee approved the cityproposed 2025-26 budget and set the general fund operations rate at $6.086 per $1,000 of assessed value, citing new enterprise-zone revenues and higher franchise and permit revenues.
Hermiston's budget committee voted to approve the proposed 2025-26 city budget and set the general fund operation rate at $6.086 per $1,000 of assessed value. The committee adopted the spending plan after a presentation from City Manager Byron Smith and a public review of department budgets.
City Manager Byron Smith said the city's combined budget across all funds increases from about $116 million to $128 million, a roughly 10% rise that he attributed largely to an $8 million Amazon-funded RV-park project and creation of a separate building-inspections fund. "We've got a building going up on the second Amazon campus in the city, so they're continuing to add jobs, construction," Smith said as he reviewed revenue and expense trends. He also told the committee that franchise-fee receipts from electric use at data centers and building-permit revenues have come in well above projections.
The committee's approval follows a review of individual departmental budgets, proposed staffing changes and capital projects. Smith reviewed a number of near-term capital items including water-system upgrades, the library remodel (slated for fall 2025), and a planned public-safety center targeted for winter 2026 completion. He also explained that the city will move building-permit activity into a new dedicated fund to comply more clearly with state law governing permit revenues.
Committee members asked detailed questions about staffing, expenses and revenue assumptions. Smith said the city factors a 3% wage increase, a 2.16% average PERS rate increase and rising health insurance costs into the budget. "We follow all the State of Oregon requirements and work within the parameters that they set for us," he said.
The committee moved and approved the general-fund operations rate and subsequently approved the overall budget as presented. The committee also approved a final small bonded-debt payment of roughly $32,000 that will retire a long-standing general-obligation issue.
The budget now proceeds to the City Council for final adoption and any administrative adjustments required before the fiscal year begins.
