Clatsop County finance staff told the Board of Commissioners on Oct. 2025 that first-quarter fiscal activity is tracking close to the adopted budget, but officials cautioned about medium-term revenue volatility tied to timber receipts and unanswered federal decisions.

Andrew, the county finance director, said the county is 25% into the fiscal year and that “in total the general fund is at 24%,” noting most operating areas remain under the one-quarter benchmark used as an early indicator. He added the county is managing revenues and expenditures daily to protect its adopted year-end fund balance goal.

The presentation highlighted several reasons some funds are above the 25% mark: the county’s annual fair and expo programs are front-loaded; mental-health grant transfers were moved into dedicated accounts; a budgeted purchase increased for a 2025 Freightliner grapple truck originally estimated at $250,000; and several capital projects — including courthouse entry work, an 800 exchange project and courthouse elevator work — are spending earlier in the year.

Finance staff described steps to shore up revenues, including a recent lodging-transit tax increase that will not be fully recognized until the new year; a full-cost recovery approach to fees adopted earlier in the summer; and efforts to support local construction and job growth through enterprise-zone strategic investments. The county also receives video lottery funds that are used for community development, with a portion passed to a program referred to as CEDAR.

Commissioners and staff spent significant time on timber revenue. One commissioner warned that purchasers are delaying sales and that the Board of Forestry could adopt a higher allowable cut the board discussed at its November meeting; either change would create a multiyear “cliff” for timber receipts. The finance director said timber revenue is volatile (timber receipts were already showing above 25% in the first quarter) and that forecasting beyond quarter-to-quarter remains uncertain.

Board members also discussed the federal Habitat Conservation Plan (HCP) process and related rulemaking. A commissioner said the HCP remains unapproved at the national level and expressed concern that the Oregon Department of Forestry might proceed with rulemaking before the HCP is finalized, which could halt timber sales if surveys stop. Finance staff said they are pressing partners to keep surveys active so sales can continue.

Commissioners raised the possibility of a longer federal shutdown and its downstream effects on SNAP and other safety-net benefits. County staff said local partners and community organizations are coordinating food drives and other efforts in anticipation of pressure on basic-needs systems.

Despite the risks, finance staff said current forecasts based on historical trends and real-time information show revenues modestly above last year’s level, and that Clatsop County is positioned better than many Oregon counties: “30 out of the 36 counties right now are in dire financial situations. And we’re fortunate to be one of the six that’s positioned a little bit better,” a commissioner said.

Looking ahead, staff said the county will continue conservative management, monitor state and federal developments that could affect shared revenues, and return with updated forecasts as more data arrive.