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Klamath County planning staff warn of budget shortfall; fee increases and service changes possible
Summary
Klamath County Planning Department staff told the Planning Commission the department has exhausted ARPA one-time funds and faces structural budget shortfalls; options discussed include phased fee increases, further ARPA draws and possible staffing reductions that would lengthen permit review timelines.
Planning Department staff told the Klamath County Planning Commission that the department is facing a multi-year budget shortfall and will ask the Board of Commissioners for direction during the countybudget process.
Justin Throne and department staff presented a summary of permit activity and fee revenue, saying the department currently receives no general-fund support and has relied on one-time American Rescue Plan Act (ARPA) funds to cover operations in recent years. Throne said the department's fee revenue in 2024 covered about $225,000 of the department's costs, while expenses (including internal service charges such as GIS and building occupancy costs) are materially higher and reserves have been used to balance the account. Staff estimated they are roughly $60,000 short to make next fiscal year work if no changes are made and that, once ARPA funds are exhausted, the shortfall would increase to about $260,000.
The department outlined options: (1) request general-fund support from the Board of Commissioners (the board has asked departments to program a 30% cut across many budgets); (2) phase in fee increases over multiple years to avoid a single large jump (an immediate 200% fee increase was mentioned as a raw math example but staff proposed a phased approach instead); (3) rely on large, one-time fee projects (for example, major solar projects) to replenish reserves; or (4) reduce staffing and extend permit-review timelines. Staff warned that cutting planning staff would increase lead times for applicants and reduce the department's ability to provide front-counter assistance and pre-application services.
Commissioners and Planning Commission members discussed the tradeoffs and asked staff to bring detailed alternatives to the Board of Commissioners and the budget committee in March and April. Staff said they will present a set of options to the board in March, with the budget committee review in April and a final budget adoption scheduled for June.
Why it matters: The Planning Department is the county's front line for development review; sustained reductions in staff or services could slow permitting and affect local development activity, utility coordination and infrastructure projects.
Next steps: Staff will prepare a budget request package and formal alternatives for the Board of Commissioners in March and will participate in the budget committee process in April. Staff asked the commission for feedback on priorities and signaled they would email a summary to commissioners following the meeting.
