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Scappoose budget committee flags $600,000 annual general-fund shortfall, urges funding strategy
Summary
City Manager Ben Burner told the budget committee that Scappoose's general fund faces an approximate $600,000 annual operating deficit, driven by rising personnel costs and property-tax limits from Oregon ballot measures; the city plans to use grants and consider new revenue tools to avoid drawing down reserves.
City Manager Ben Burner told the Scappoose budget committee on May 12 that the city's proposed fiscal year 2026 budget reflects continuing pressure on regular operations and a widening gap between recurring revenues and expenses. "The general fund is facing an operational deficit of around $600,000," City Manager Ben Burner said during his budget message, noting the city has built a general-fund reserve of $6,121,870.
The shortfall stems from rising personnel and operating costs combined with long-standing limits on property-tax growth under Oregon's Measure 5 and Measure 50, Burner said. Those measures cap property-tax increases in many circumstances, he said, and the effect is that property-tax growth has not kept pace with costs for services such as police and parks.
Why it matters: At current spending levels the city estimates the general-fund reserve could be drawn down in roughly six to 10 years if new funding sources are not identified. Burner's presentation framed grants and other one-time revenues as important stopgaps but cautioned the city needs sustainable finance solutions for ongoing services.
Key details: - Reserve and deficit: Burner reported a general-fund reserve of $6,121,870 and said the budget faces an operational deficit of about $600,000 annually absent new revenues or cost reductions. - Personnel and contracts: The budget reflects recent market-driven salary adjustments and a police contract that increased wages; the city budgeted a 3% cost-of-living adjustment and allowed a salary buffer tied to an ongoing classification/compensation study. - Budget size and composition: The citywide proposed budget declined from roughly $58 million to about $54 million year over year, primarily because large one-time sources included in the prior budget (notably ARPA and other intergovernmental revenues) have been spent or carried forward. The city has budgeted more than $2.4 million in grant applications, mainly for parks projects. - Internal accounting change: Staff noted a methodological change reducing internal-service fund (ISF) transfers and moving actual expenses to the funds that incur them; the change is intended to increase transparency but produces year-to-year differences in department totals. - Contingency and capital: Contingency and capital projects are significant drivers of reserves use; staff said many capital projects are contingent on receiving grant awards and that debt proceeds or loans shown in the budget will only be taken if necessary.
Discussion and next steps: Committee members asked staff to break recurring revenues out from one-time intergovernmental and grant receipts to provide a clearer picture of sustainable operational capacity. Burner and staff said they will refine intergovernmental revenue reporting so predictable sources (for example, certain gas-tax allocations) are separated from pass-through grants and one-off reimbursements. The budget committee will forward recommendations to the council, which will consider adoption at a future meeting.
Ending: Staff emphasized that the budget remains a working document: many capital items are contingent on grants, and the city will continue to pursue grants, refine internal accounting and examine possible fee or service-charge options to shore up ongoing revenues.
