Yamhill budget committee approves proposed 2025-26 budget and permanent tax rate after debate over grants, reserves and COLA

The Yamhill Budget Committee on a voice roll call approved a proposed 2025-26 city budget that relies on supplemental transfers and pending grants to start the year with a zero balance, and separately approved the city's permanent tax rate.

Committee members approved the proposed budget after staff presented a revised front-page total and line-item changes that reduced the gap by about $200,000. Karen (staff member) told the committee, "you will notice, first of all, that the budget number on the front page has changed. We're gonna go through the changes that we made here, by roughly $200,000." The committee approved the package by roll call; the meeting record shows the motion passed and the tax rate motion later passed as well.

Why it matters: Committee members said the changes are intended to avoid entering the next fiscal year with a negative general-fund balance. That strategy relies on one-time transfers from reserve funds and on grant awards that have not yet been received, and council members repeatedly cautioned that budgeting for grants before award carries implementation risk.

City staff said the roughly $200,000 adjustment comes mainly from recognizing an economic-development loan and a planned transfer from the police vehicle reserve this fiscal year so the general fund begins the next fiscal year at zero rather than a deficit. Karen said the transfers include contingencies from reserve funds that are currently accounted for in special funds (the administration reserve, city hall reserve and police vehicle reserve) and will be moved into the main general fund by supplemental budget action.

Staff and committee members also discussed including anticipated grant awards in…