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Keizer staff warns of looming general-fund gap; proposes police, parks fee increases
Summary
At a March 10 Long Range Planning Task Force meeting, city finance staff projected a multi-year shortfall in Keizer’s general operating fund under full staffing and recommended modest fee increases — a 10% bump to the police services fee and a 5% increase to the parks fee — as part of a package of options to avoid deeper cuts.
At a March 10 Long Range Planning Task Force meeting, City of Keizer finance staff told members the city faces a multi-year gap in its general operating fund if staffing returns to full levels and current revenue assumptions hold.
The long-range projection presented by Tim Wood, Assistant City Manager and Finance Director, showed a 2024 surplus of about $610,000 but forecasted a roughly $1.8 million loss the next fiscal year under the assumption of full staffing. Wood said the city’s ending fund balance would fall toward the council’s minimum target in the 2026–27 timeframe unless the city takes action. “The big message is the pain is gonna continue for the near future on on this,” Wood said during the presentation.
Why it matters: The general fund pays for core services including police, parks, planning and municipal court. Keizer officials said constrained growth in diversified revenues, rising retirement (PERS) contributions and wage pressure make the fund vulnerable; the police department alone comprises roughly two-thirds of general-fund spending.
Key details
- Current projection: Wood said 2024 ends with about $610,000 in resources over expenditures; the model projects a $1.8 million loss the next year assuming full staffing and no fee increases. - Reserve target: Staff said the council’s working reserve target is roughly 15% of revenues; under the presented scenario the ending fund balance would approach that threshold by 2026–27. - Recommended near-term options: staff floated a 10% increase to the police services fee and a 5% increase to the parks service fee as part of a broader set of steps to flatten the deficit curve. Wood said those increases would push a “soft landing” of reserves farther out but would not fully close the long-term gap.
Council reaction and next steps
City Manager Brown and council members asked staff to begin public outreach and to bring options to the budget committee. Council President Starr emphasized beginning community conversations early so residents understand tradeoffs, and Councilor Christopher urged an advisory/community engagement process before any final fee decisions. Brown said staff will return with refined materials and comparative data for neighboring jurisdictions before budget hearings.
Context and constraints
Wood noted the projections assume no frozen positions and do not yet include possible one-time actions such as using proceeds from property sales for a PERS side account (a separate proposal discussed later in the meeting). He also said investment-return uncertainty for PERS and continuing personnel turnover statewide add downside risk to longer-term forecasts.
Ending
Staff asked the task force to treat the presentation as the starting point for budget deliberations; the next formal budget committee meeting was scheduled for May 12. Council members asked staff to prepare refined scenarios, comparable-fee data from nearby jurisdictions and a public outreach plan ahead of budget deliberations.
