Bend budget committee approves 2025–27 biennium budget after debate over reserves, housing and development fees

The City of Bend budget committee on June 3 approved the city's 2025'27 biennial budget with amendments after multi-hour briefings from staff on the state economic outlook, pensions, community development operations, economic development and housing programs.

Committee members and staff spent the bulk of the meeting reviewing department budgets and a set of reserve scenarios prepared by city finance staff. Presentations highlighted three policy pressures: (1) uncertainty in state revenue and a forecast of slower growth, (2) rising personnel costs tied to public-employee retirement and health insurance, and (3) a sustained decline in planning-fee revenue that requires temporary general-fund support while staff recalibrate planning fees.

Why it matters: The approved budget includes modest program increases while preserving a higher reserve level than staff's originally proposed plan. Committee members pushed staff to show a path to long-term sustainability for public safety, transportation and housing services while recognizing the city's limited property-tax capacity. The committee also recorded a string of votes that put tax levies and bond levies in place for the next two fiscal years.

Key facts and decisions - The budget committee approved the city's 2025'7 biennial budget as proposed with amendments that increase contingency and reduce certain personnel program appropriations to reflect revised health-insurance premium assumptions (12% in FY25-26, 15% in FY26-27). The motion passed by voice vote; committee recorded "aye" and the chair declared the motion carried. (Motion language and voice vote recorded on the transcript.) - The committee set the city's property-tax rate at $2.8035 per $1,000 of assessed value for FY25-26 and FY26-27. - The committee approved voter-authorized general-obligation bond levies related to transportation: $1,615,000 per year for the 2011 bond schedule and $7,222,000 per year for the 2020 bond schedule (each for both fiscal years shown). The measures passed by voice vote. - The committee approved the fire local-option…