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Clatsop County presents balanced FY 2026–27 budget amid funding uncertainty and rising insurance costs
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Summary
County staff presented a proposed FY 2026–27 budget they say is balanced at roughly $108.6 million, citing the postponement of a $14 million federal grant and projected medical insurance costs of about 22% as key risks; the Board will hold a public hearing June 10 and expects to adopt the budget thereafter.
County Manager Don Boone and finance staff on Wednesday presented Clatsop County’s proposed fiscal year 2026–27 budget, which staff described as balanced at about $108.6 million and projected to finish next year with a roughly 36% general fund balance.
The proposal, presented by Finance Officer Andrew Sullivan, showed a countywide total (excluding service districts) “approximately $108,600,000” and a more detailed slide listing $108,572,390, a year‑over‑year decrease of roughly $7.8 million that Sullivan said was primarily driven by a $14,000,000 federal BRIC grant that was budgeted in FY25–26 but has since been frozen or postponed. Sullivan said the county’s approach was guided by adopted budget policies and an emphasis on maintaining reserves.
Why it matters: county leaders said they face persistent ‘‘financial headwinds’’—uncertainty in state and federal funding for core services such as the health‑care safety net, community corrections and shelter programs, and cost pressures from inflation. County Manager Don Boone told the committee that the board has set a goal of a 30% general fund reserve with a 20% minimum as a hedge against volatility.
Sullivan outlined major budget drivers. Personnel services account for about 51% of the countywide budget; the proposed personnel increase is roughly $1.9 million (about 4.9%), reflecting scheduled step increases and a 3% cost‑of‑living adjustment, plus higher medical insurance and retirement costs. He said the county expects a small net change in FTE and that the county historically does not spend 100% of its appropriations.
Sullivan also described changes tied to the county’s transient lodging tax (TLT): Clatsop County increased the local TLT and the legislature altered the distribution formula, moving discretionary shares toward a 50/50 split; the county is recording TLT receipts in a new fund and plans transfers into the general fund to support public safety and justice services. The county manager added some TLT revenues will be shared with rural fire districts to address tourism‑driven demands on public safety.
On capital and district budgets, staff said the capital budget dropped about $2 million (about 28.5%) after completion of courthouse entry and elevator modernization projects, and that service districts total about $10.747 million for 2026–27 with fully dedicated funding. The Westport Road bypass was described as funded and in permitting, with construction anticipated to begin next year.
Committee concerns: Accounting Manager David Ozer asked staff to provide more detail for the next meeting on two issues he said require additional analysis: the roughly 22% increase in medical insurance premiums and the continued elevation of fuel and diesel costs. "There are two areas of concern. One is the medical insurance that went up 22%... The second is the cost of fuel," Ozer said, asking staff to explore pooled purchasing or self‑insurance options and to explain how the budget accounted for higher fuel costs.
Staff response and next steps: Sullivan and County Manager Don Boone said staff will prepare responses and additional detail for the budget committee’s next meeting. The county will accept written questions in advance and is scheduling an in‑person budget meeting on May 6 at the Boynton Building in Astoria; the Board of Commissioners will hold a public hearing on June 10 and is expected to adopt the annual budget at the conclusion of that hearing.
No formal vote on the budget was recorded at the session.
