St. Helens officials say general fund shortfall may prompt voter-approved service fee

City officials warned the Saint Johns Public Library Board on Thursday that St. Helens is on a spending path that could exhaust contingency reserves by June 30 unless the city secures new revenue or makes spending cuts. Unidentified Speaker (S8) told the board, "we will be … exhaust our contingency and be negative about a 150,000 if we don't make some changes here by the end of the fiscal year on June 30."

Officials described the problem as citywide rather than library-specific. The council’s long-standing reserve goal is 20 percent, officials said; the city entered the year with roughly a 6 percent reserve after prior drawdowns. Unidentified Speaker (S8) said council staff have modeled alternatives ranging from restoring a 10 percent contingency using new revenue to returning to the 20 percent target.

One revenue option under consideration is a voter-approved general-service fee or a property-tax levy. Unidentified Speaker (S8) said the council could place a measure on the May ballot and that, if approved, the fee would be collected via utility bills and take effect shortly thereafter. "We will have the opportunity to to vote on that in the May election," the speaker said. Board members and staff emphasized the need for clear ballot language and public education before any vote.

Officials pointed to shrinking one-time revenue sources and a contracting tax base. Unidentified Speaker (S8) said the city lost about $1.3 million in annual revenue when Cascades Tissue closed and left the tax rolls; the property was later purchased by Arcadia, but officials said it will take years for production to return to previous levels. As one council member urged, the city is also exploring longer-term revenue projects such as a regional sports complex on city and school district land that proponents say could generate recurring income through tournaments and sponsorships.

City staff said they will present dual budget scenarios to the citizen budget committee in April and to the council in June — one assuming new revenue from a May ballot measure and one that does not. The council will then decide whether to proceed with a ballot placement and on the measure’s size and duration. The meeting closed without formal council action; the board was asked to help communicate the library’s community value during any public education campaign.

What happens next: staff expect citizen budget committee meetings in April and council action on budget paths in June; voters would decide any May ballot measure.