Kady explains Newberg's two-year budget cycle and how water rates are set

Kady, a City of Newberg staff member, explained the city's two-year budget cycle and how rates are reviewed after a resident raised concerns about a high water bill during a 3 o'clock appointment.

Kady told the resident that the city's budget spans two years rather than months and begins in January of even-numbered years. "In fact, our budget isn't month to month like an individual family's budget. It spans over two years," Kady said, and offered a step-by-step overview of how the city reviews rates, fees and capital plans.

The nut of the process, Kady said, is the Rate Review Committee, which meets in January and February of even years to hear staff proposals on rate updates, accept public comment and forward recommended rates to the City Council for a final vote. "That committee hears staff proposals on rate updates...then the committee passes their recommended rates to the City Council who votes to pass the package or reviews them and passes them back to the committee for changes," she said.

Kady outlined other calendar milestones: finance staff examine System Development Charges in February and March and the finance team develops a Master Fee Schedule beginning in April that lists building permit fees, public-records fees and other charges. From June through September, leadership reviews the four-year Capital Improvement Program to update finished projects, check progress and consider new projects. Toward the end of the year, department leaders review their individual budgets and may submit Budget Change Requests to reallocate funds as needed.

She described the odd-numbered-year tasks as well: Budget Change Requests are due in January and the finance team works to balance the budget from January through June. The Budget Committee, which includes residents and City Council members, reviews the budget in April, May and June and votes before the start of the next fiscal year. "July marks the start of a new Biennial (two-year) budget cycle," Kady said, at which point the city begins preparing again for the next cycle.

A narrator in the meeting summarized what those funds buy and the limits on their use. "The City of Newberg provides services and infrastructure to Newberg residents like water, stormwater, sewer, roads, a library, public safety," the narrator said, adding that some funds are legally restricted: "we use the Transportation Utility Fee funds to fix roads but we can't use that same fund to fix our Water Treatment Facility. That's the law!"

The resident's central complaint'that their water bill was too high'prompted the explanatory session, and staff offered to investigate the specific bill. Kady and the narrator both directed the resident to the city website, newbergoregon.gov, where committee information, the adopted budget and the Annual Comprehensive Financial Report are posted for public review.

The meeting closed after the resident said they would look into participation options, including the Budget Committee. Staff offered further help in person or via the website.