Umatilla council adopts supplemental budget, moves $2.285M interfund loan and a $200,000 school transfer

The Umatilla City Council approved a set of supplemental budget resolutions Tuesday that adjust several funds and authorize temporary financing to balance cash flow.

Staff told the council the budget committee met three times and recommended the proposed FY 2026–27 budget. Key items discussed included a projected $124,700 allocation of liquor revenues to the general fund (a combined $19,300 decrease from the prior fiscal year), an estimated highway fund apportionment of about $662,660 (down roughly $7,340), and adjustments across funds driven by fines, franchise revenue increases and beginning fund balance reconciling.

Council approved a supplemental budget (Resolution 60-2026) that incorporates those changes and directs a $200,000 transfer to the local school district to offset increased bus costs attributed to delays on the Madison Street project. Staff said the transfer is a one-time adjustment to cover the district’s increased transportation costs.

To address short-term timing differences while the city awaits state reimbursements, the council approved Resolution 59-2026 to authorize an interfund operating loan "not to exceed $2,285,000" from the general fund to the water reserve fund. Staff explained Oregon budget law requires a fair‑market interest rate on such loans and that the city will charge a 4% rate; the loan is expected to be repaid when reimbursements arrive, likely within the next 90 days.

Why it matters: The actions update appropriations and enable continuing water and capital work without service disruption. The school transfer is a notable one-time local expenditure to address bus service impacts from infrastructure work.

What’s next: Staff expects to offset the loan in the first supplemental of the next cycle when reimbursements are received.