La Grande staff warned of $2 million shortfall; leaders push CSRI, grants and economic development to protect services

La Grande city leadership told staff at a June all‑hands meeting that a recent fiscal forecast showed a potential $2 million shortfall for the coming fiscal year and that the city has identified about $1 million in revenue and savings since the budget hearings.

The meeting’s moderator said the $2 million figure came after staff implemented a 10% reduction request and that further cuts beyond current measures would force difficult choices. "If the savings account runs out, you gotta stop doing what you do," the moderator said, adding that staff had found revenues and savings that are "trending in the right direction." The moderator credited steps such as the public service safety fee review, targeted cost‑savings and pursuit of additional grants for narrowing the gap.

To communicate performance and funding tradeoffs across departments and to the public, city leaders described rollout plans for a Community Service Readiness Index (CSRI). The moderator said the CSRI will visualize how funding levels relate to expected service performance and help manage community expectations: "It will show the connection between the funding that we have for those services and where we’re at in the performance level," the moderator said.

Department directors reported varying capacity to absorb cuts. The city recorder said her office’s paperwork flow and handling of ordinances and resolutions were adequate but warned that deeper reductions could require eliminating positions for mandated functions. Parks and recreation staff said current staffing represents a minimum sustainable level and that service quality could suffer with further cuts. The library director said the department protected personnel costs while other services and programming were reduced after a 10% budget cut.

City leaders said they have sought one‑time and recurring revenue sources and hired consultants to support economic development planning. The moderator emphasized that long‑term recovery depends on economic growth: he described economic development as the principal path to sustained fiscal health and said work is underway to attract developers and new investment.

Officials urged staff to engage with upcoming public outreach opportunities, including a community town hall and targeted roundtables on sidewalks and the budget, to ensure consistent public messaging about tradeoffs and service levels. The next all‑hands was set for Oct. 15 at 3 p.m., and leaders said they will poll staff about continuing the meeting series.

The all‑staff meeting included no formal votes; leaders said they will pursue grants, cost reductions and economic development strategies while continuing to report progress to staff and the public.