County manager warns of timber revenue loss, previews budget cuts and lodging-tax push

Clatsop County staff told the Board of Commissioners that the county enters the 2025 budget process with a fund balance substantially above policy but facing a possible timber revenue reduction that could hit county revenues by an estimated $3 million if fully implemented—about $1.8 million of which staff said is general fund.

County Manager and staff framed that risk as part of a wider budget strategy that includes eliminating some vacant positions, holding others open longer and reducing certain expenditures. Staff said the county’s available fund balance is roughly 34% (policy target about 20%), and that the proposed changes are intended to produce a balanced 2025–26 budget while preserving current services as much as possible.

Why this matters: The general fund pays for discretionary services—about half is used for public safety and justice in Clatsop County—and revenue losses of the size described would force choices that could touch policing, jail operations, fire support and other services used by residents and tourists.

Details from the meeting County staff said a $3,000,000 hit to county revenue is the estimate in the current scenario; $1.8 million of that is general fund exposure. Staff also said the county road district could face an additional reduction of roughly $600,000 tied to timber revenue declines. Separately, the county cited an earlier state estimate of an $8 million total impact for the county at a 35% reduction level, a figure that includes school funding.

To address the potential shortfall, staff told the board they will: - Propose eliminating some vacant positions and delaying filling others; - Reduce certain discretionary expenditures; and - Bring a local transient lodging tax (TLT) ordinance for board consideration, with a first reading scheduled for the board’s January 15 packet and a later action item listed for January 22 and February meetings.

County leaders said a coalition of counties and public agencies is pushing for legislative flexibility so local lodging taxes can be used to help respond to tourism-driven demands on emergency services. The manager said that if the county secures state-level revenue replacement or legislative flexibility, required local rate increases could shrink or be avoided.

Traffic safety, roads and fire districts Staff also briefed the board on a countywide traffic safety planning process tied to federal grant funding. The county will engage a consultant to inventory high-concern locations and identify candidate projects that could become eligible for outside dollars. Public works staff warned that transportation funding remains constrained and that some flood and culvert projects in south county will remain priorities.

Commissioners noted that timber-revenue impacts extend beyond the county: fire districts, school districts and other local partners will also face cuts. Commissioner Banks flagged that the same relative revenue losses hit smaller jurisdictions proportionally more.

Economic development and housing updates The manager and commissioners discussed several economic-development items as part of the budget context: the WCT enterprise-zone project (the firm WCT was described in meetings as the entity approved for the enterprise zone and negotiating site arrangements), a roughly $20 million public investment in a boat-lift facility tied to jobs commitments, and the North Coast Business Park, which staff said will return to the board on February 14. Staff also said they are preparing a housing dashboard to track new units against the county’s housing-study goals, and that municipal staff are monitoring ADU legislation’s local effects.

What the board directed No formal budget votes were taken during the meeting; staff were directed to proceed with preparing budget policies and to return with ordinance language and budget documents as scheduled. Commissioners also asked staff to include clearer breakdowns of the staffing and program reductions the county will consider if revenue replacement from the state does not materialize.

Ending: The board signaled support for a cautious, data-driven approach to balancing services and reserves while continuing to press the legislature for flexibility and revenue help; staff will return with detailed budget policies, the proposed TLT ordinance and project-level analyses in upcoming meetings.