Tigard council adopts $240.5 million FY26 budget, approves fees schedule and TCDA budget

TIGARD, Ore. — The Tigard City Council on June 24 unanimously approved the city’s fiscal year 2025–26 budget, an updated fees-and-charges schedule and related routine resolutions, and adopted the Town Center Development Agency (TCDA) budget and a fiscal-year 2025 supplemental appropriation.

The council set total appropriations for the city at $240,516,265 and approved a staffing level of 364.4 full‑time equivalent positions for FY26. For property taxpayers, the council adopted a permanent ad valorem rate of $2.5131 per $1,000 of assessed value, a local option levy of $0.29 per $1,000 and $2,587,000 in levy taxes for debt service on general obligation bonds. The TCDA budget was approved at $8,305,096. The council also approved a FY25 supplemental appropriation totaling $1,801,053 to close out funds and cover a $25,000 increase in costs for the city’s July 4 event.

The fees-and-charges resolution (Resolution 25‑20) incorporates several index‑based adjustments across city services and notes a recent change to a proposed Clean Water Services (CWS) rate increase: the CWS board reduced an earlier 4% proposal to 3% before the council’s action. Finance Director Eric King told the council that CWS rate changes are reflected in the fees schedule and that the proposed increases were generally intended to preserve existing revenue in the face of inflationary indices rather than to add expanded services.

Why it matters: the adopted package sets Tigard’s operating plan and tax levy for the next fiscal year, funds capital priorities identified in the adopted budget and closes several legacy accounts. City leaders said the package balances one‑time investments from reserves with ongoing revenue limits under Oregon’s property‑tax system.

Key details and council discussion

- Budget totals and tax rate: City staff recommended and council adopted total appropriations of $240,516,265 and the permanent and local option tax rates listed above. Finance Director Eric King said the budget process began in October 2024 and the proposed figures were reviewed by the budget committee in April and May before the council vote.

- CWS rate and the city’s ability to contest it: Councilors asked whether Tigard could refuse the CWS rate change. City Attorney and other staff present advised the council that the city is bound by the terms of its intergovernmental agreement (IGA) with Clean Water Services, and the city cannot unilaterally refuse the regional agency’s fee schedule.

- Grant analyst position: Councilors debated a proposed grant/GRAMA analysis position (discussed during budget deliberations) and the timing of hiring. Councilor Tiffany Hu (transcript spelling varies) expressed concern about adding the role now and asked that the item be considered as a supplemental request if the council wanted more time; other councilors supported the new FTE but asked staff to return with an accountability…