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Keizer adopts 2025–26 budget with amendments; council conditions Chamber payout and approves interfund loan
Summary
Keizer City Council adopted the 2025–26 budget on June 2, 2025, after amendments that reduced some fees, added a budget note making Chamber of Commerce funds contingent on a signed agreement, and authorized an interfund loan of $200,000 to the stormwater fund to complete the Claggett Creek project. The budget passed unanimously.
Keizer City Council on June 2 adopted the city's 2025'26 budget, including a 1% water rate increase and several fee changes, after amendments that reallocated funds and added conditions to some payments.
The budget committee's approved document included reduced stormwater revenues compared with staff's original request; the council accepted staff'recommended amendments that (a) reflect the lower stormwater fee, (b) decrease related transfers from the street fund, and (c) authorize an interfund loan of $200,000 from the Transportation Improvement Fund to the stormwater fund to fully fund the Claggett Creek Watershed Enhancement Project. City staff said the loan will be repaid to the transportation fund over future years.
Council also added a budget note for transient-occupancy-tax spending: the Chamber of Commerce payment will be made in two parts, with the second half released only after a fully executed contract and a six-month report to the council. The council instructed staff to finalize a contract with the Chamber prior to dispersing the second payment.
Why it matters: the changes shift timing and sources of capital for projects (notably stormwater and Claggett Creek work) and add conditions intended to increase accountability for outside partners receiving city funds.
Key details - The adopted budget includes a 1% water rate increase effective Jan. 1, 2026, and line items for police, park and stormwater fees (subject to separate council action or later implementation). - The council approved staff'proposed budget amendments to match the reduced stormwater fee and to authorize a $200,000 interfund loan to the stormwater fund to allow an urgent Claggett Creek project to proceed this summer. - The Chamber of Commerce allocation from TOT (transient occupancy tax) was made subject to a signed agreement; staff must report on outcomes midyear before releasing the second half.
Votes at a glance (actions taken June 2, 2025) - Adopt 2025'26 budget as amended — passed unanimously. - Add budget note: Chamber payment split; require executed contract and six-month report before second payment — passed unanimously. - Authorize interfund loan $200,000 (Transportation Improvement Fund -> Stormwater Fund) for Claggett Creek enhancement — adopted as part of budget amendments. - Other votes of the evening (see separate articles for details): stormwater fee increase (passed 5'2), park services fee increase (passed 5'2), medical waste collection rate change (adopted), water rate ordinance (adopted), Claggett Creek contract award (adopted), 2025 pavement resurfacing contract award (adopted), purchase of 5660 McLeod Lane (authorized).
What's next: Staff will finalize the Chamber agreement and bring the required midyear report; the $200,000 interfund loan will be placed in the stormwater fund and staff will track repayment. Several fee decisions (notably the police services fee) were postponed or subject to separate council action.
Ending note: Council members said they wanted more resident engagement on fees and asked staff to return with clearer revenue and level-of-service information before implementing some of the larger policy changes.
