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McMinnville council split over restoring final 50¢ property tax levy as service fee’s future is debated
Summary
Finance staff told a joint council and budget committee work session that without restoring the remaining 50¢ of the operating levy the city could face a $2.3 million shortfall in 2027; councilors expressed differing views on whether to keep a city service fee, place a levy before voters, or cut services to close the gap.
Finance Director Katie Henry told a joint McMinnville City Council and budget committee work session that FY2025 revenues came in roughly on budget and that the city ended the year with multiple fund balances (ARPA about $3.3 million with roughly $500,000 uncommitted; an operating fund balance of about $6.7 million). Looking ahead, Henry said the single largest unknown for the FY2027 budget is the operating tax levy and presented models that assume a 50¢ property tax increment (bringing the permanent operating rate from $4.52 to $5.02 per $1,000 assessed value).
Why it matters: staff models that include the 50¢ increment showed a modest shortfall for 2027 that becomes manageable in later years. Henry said, without the added 50¢ and without substantial cuts, the model shows a roughly $2.3 million gap in 2027 and larger deficits in ensuing years. She emphasized the model’s…
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