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Philomath council directs staff to include $14 monthly city services fee in 2026–27 budget after split vote
Summary
Council directed staff 3–2 to draft the 2026–27 budget including a $14-per-household monthly city services fee (estimated to raise about $400,000) for public safety and to rebuild the city’s ending fund balance; councilors debated timing and equity and asked staff to model low‑income exemptions.
The Philomath City Council voted 3–2 on March 9 to direct staff to draft the fiscal year 2026–27 budget with a proposed $14-per-household monthly city services fee built into the budget for public review, a step staff said would allow public hearings on the fee during the budget process.
City staff described the fee as intended to stabilize the general fund’s ending balance and to maintain public safety competitiveness. "At $14 a month would bring in about $400,000 a year," city staff member Chris said, noting the revenue would be used to shore up cash flow between July 1 and the November property‑tax receipts and to help fully fund police staffing and related public safety needs.
The proposal drew disagreement. Several councilors said they were reluctant to add a new household fee while utility rates and other costs are rising. One councilor suggested postponing the fee until the new water treatment plant is complete and exploring alternate revenue such as revised local cannabis tax policy. Another councilor urged protections for low‑income households and noted past practice of offering reduced rates for qualifying households. Staff said an exemption or reduced rate for low‑income households could be added when drafting the ordinance.
Staff recommended building the fee into the draft budget—not implementing it immediately—so the budget review committee and the public can test the proposal and suggest offsets or cuts. "We're not asking you to approve the fee tonight," Chris said. "We're asking you to include it in the budget and take public comment as part of the budget process."
The motion to direct staff to prepare the budget package passed on the council floor; the fee would still require an ordinance or resolution if the final budget includes the revenue. Councilors and staff said future budget committee meetings will present options, projected household impacts and any low‑income adjustment.
Next steps: staff will include the fee in the draft 2026–27 budget for public hearings; council will consider ordinance language if the budget review process supports the proposal.
