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McMinnville city staff present FY26 proposal with $3 million shortfall; no new revenues proposed
Summary
City manager Jeff Towery presented a proposed FY26 budget that closes most of a roughly $3 million gap through personnel and program reductions, aims to meet a two-month operating reserve target and set aside $1 million for capital maintenance; staff said the proposal contains no new revenue sources.
City of McMinnville staff presented a proposed FY26 budget to the Budget Committee on May 20, 2025 that, according to City Manager Jeff Towery, responds to roughly $3 million in requested service-level increases exceeding available revenue with a mix of personnel and program reductions.
"The initial budget directions to staff were to maintain current levels of service. Those requests came in about $3,000,000 more than available revenue," City Manager Jeff Towery told the committee. He said the executive team set three goals for the package: align annual expenses and revenues, make progress toward the council’s adopted reserve target and set aside resources for capital improvements to facilities. Towery emphasized the proposal does not add any new revenue sources and instead relies on cuts in personnel and materials-and-services lines.
Staff described the rough composition of the reductions: "The staffing reductions that we've talked about totaled about $1,500,000. The program and other service reductions is about $1,400,000," Finance and executive team materials and staff said during the meeting. The proposed budget also sets aside a $1,000,000 capital reserve for facilities improvements and, as presented, would meet a two‑month operating reserve target the council approved.
Towery and staff described process constraints and timeline: the Budget Committee acts to approve a budget for council consideration, set the property tax levy and take actions that require eight votes. Towery said the committee’s questions and requests for follow-up would be compiled and staff planned to return with additional detail at subsequent budget hearings. Staff also noted that some Q&A items and reconciliations (including the final figure for unallocated American Rescue Plan Act funds) remained to be clarified and would be provided in follow-up materials.
The committee scheduled additional budget meetings for May 21 (and possibly May 23) to continue discussion; public testimony and department presentations followed the manager's overview.
