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McMinnville staff outlines $3 million budget shortfall; seeks cuts and capital set‑asides
Summary
City finance staff told the council the general fund’s ongoing expenses are outpacing recurring revenues, producing a roughly $3 million gap for fiscal 2025; staff proposed $2.3 million in operating reductions plus a $700,000 capital set‑aside to begin replenishing deferred facility maintenance.
McMinnville city finance director Katie Henry told the City Council during a work session that the city faces a roughly $3 million shortfall in ongoing revenues and expenses for fiscal year 2025.
“The added revenues for 2025 are 3,800,000,” Henry said during a slide presentation, then explained how annual personnel, benefits and materials and services increases have consumed that revenue. Henry concluded: “between what we have already there, that requires a cut of 2,300,000.”
City Manager Jeff Towery framed the problem as the result of long-term trends as well as recent changes: “The city started deficit spending 15 years ago, and has consistently spent that down over more than a decade,” he said, noting the city’s reserve has been drawn down and is no longer available to smooth the current gap.
Why it matters: staff said the shortfall stems from faster growth in personnel costs and benefits than the city’s main ongoing revenue sources. Henry showed property tax, franchise fees and state‑shared revenues…
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