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St. Helens warns of furloughs, layoffs and service cuts as budget shortfall grows
Summary
City staff said the general fund faces a shortfall even if a proposed ballot measure passes; staff warned the city is preparing two budgets (with and without the fee), may implement furloughs or layoffs, and will host public education events to explain trade-offs affecting library hours, permitting and recreation services.
City officials told the St. Helens City Council at its March 18 work session that the municipality is facing an acute general‑fund shortfall and is preparing contingency plans that could include furloughs, layoffs and service reductions.
City administrator John (speaker 13) told council that, even if a referred ballot measure (a proposed general‑fund revenue measure) is approved, the city will likely still need to reduce services unless other revenues materialize. "We're preparing a budget with the fee and what budget without the fee," John said, noting staff have already reduced headcount from 85 to 73 and described a range of potential effects if further cuts are required: reduced library hours (the library is already closed Thursdays), consolidated municipal functions, delays in permitting and possible appointment‑only access to city facilities.
City staff have notified employees that the city is considering furloughs — a reduction from 40 to 32 paid hours per week was cited as an example — and both bargaining units have requested bargaining. John said the notification aimed to preserve options while the council weighs policy choices.
Councilors discussed public outreach to explain the city's fiscal position. Staff proposed a public 'state of the city' event (date discussed at the meeting) and a non‑advocacy mailer to households describing general‑fund programs and the services they support. "It's an opportunity for them to ask questions," one councilor said; staff agreed to post information online, invite pre‑submitted questions and make department heads available to answer technical inquiries.
Council members pressed staff for additional detail, including a breakdown of legal fees (staff estimated legal costs near $700,000 for FY25–26) and counts of public‑records requests and fee waivers. Staff committed to return with an analysis and to bring information to the council and budget committee for a more detailed discussion.
Next steps: staff will prepare two proposed budgets (with and without the proposed revenue measure), continue bargaining with labor units over furlough proposals, and schedule public education and outreach (state‑of‑the‑city event and mailed information) before budget committee deliberations. No new personnel actions were approved at the work session.
