Clatsop County proposes FY 2025–26 budget policy and calendar, aims to avoid drawing reserves amid timber-revenue uncertainty

Clatsop County Finance Director Andrew Sullivan presented proposed budget policies and a draft budget calendar at a work session, saying the county plans to move toward a budget in which current revenues match current expenditures and to avoid drawing on reserves next fiscal year while county leaders seek clarity on potential state timber-revenue replacement.

Why it matters: county leaders said they want to preserve a larger-than-usual fund balance to provide time to plan for possible state revenue changes tied to timber and other statewide decisions; commissioners discussed the policy’s implications for staffing, services and outside-agency funding.

Proposed policy measures Sullivan said the updated budget policy reflects changes made in the current year and identified examples of cost savings already implemented, including holding unfilled positions longer and reducing materials-and-services spending. The County Manager told the board, “Our commitment has been that next year we will not be diving into the reserves,” and said maintaining a healthy reserve will give the county time to learn whether the state will provide revenue replacement for timber-related losses.

Reserves and fiscal posture Commissioner Webb asked about the fund-balance level and noted discomfort at what she described as an unusually high reserve; staff said the figure under discussion is roughly 34% of fund balance and that the county previously had been higher and intends to return to the board’s usual target if state revenues stabilize. County staff stated the county estimates timber-related general-fund losses could be about $1,800,000 per year if replacement does not materialize.

Expenditure-reduction strategy and priorities Sullivan said a resource-management strategy would guide any required expenditure reductions and that staff are already pursuing measures such as leaving vacancies unfilled, reducing discretionary spending and reprioritizing funding distributed to outside agencies toward core county services. Commissioners discussed the need to balance fiscal prudence with service delivery and to be careful about impacts on union and nonunion employees.

Calendar and process Assistant County Manager Steele reviewed the proposed budget calendar and asked commissioners to note critical dates: budget documents are scheduled for distribution around April 23, a budget message presentation is scheduled for April 30, and budget committee hearings begin in May. Sullivan said the draft budget policies are planned for the board’s consideration and adoption at the next regular meeting on January 22.

Coordination with legislative advocacy Commissioners asked about lobbyist involvement in timber-revenue replacement discussions. County staff said the governor convened a small-table group (and a CFTLC process) that has been the primary forum for negotiating replacement options; staff said county lobbyists have been monitoring and engaging with that process and will escalate county advocacy as options become clearer.

Next steps and oversight Board members asked for ongoing, frequent updates during the legislative session and for a continued budget-calendar reminder to ensure commissioner availability for key hearings. Assistant County Manager Steele said staff will confirm meeting dates and plan to circulate materials in advance. The board did not take formal action during the work session; staff will return with the budget policies for consideration on Jan. 22.