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Estacada budget committee elects John Dolezal and approves $77.8 million budget, sets tax rate for certification
Summary
The Estacada Budget Committee elected John Dolezal as chair, held a public hearing on state revenue-sharing funds, and approved a $77,757,535 budget and a property tax rate to be certified for collection. Staff said utility-rate increases and major water and wastewater projects drive the larger budget.
John Dolezal was elected chair of the Estacada Budget Committee after a nomination from a committee member, and the committee then approved a proposed city budget of $77,757,535 by voice vote.
City staff opened a required public hearing on state revenue-sharing funds and explained the source and process for accepting the money. A staff member said the state revenue-sharing allocation (from state liquor, cigarette and marijuana taxes and the state highway gas tax) would total about $670,000 for the city; no members of the public spoke at the hearing.
In a presentation to the committee, the budget presenter said the budget follows Oregon Revised Statutes, chapter 294, and reiterated a council policy to maintain a 10% contingency on operating expenses. The presenter said property-tax revenue is rising because of annexations and assessed-value growth even though the city's permanent tax rate remains $2.67 per $1,000 of assessed value.
Staff highlighted major capital projects driving the increase in the proposed budget, including upgrades to the drinking-water treatment plant and wastewater projects, I&I (inflow and infiltration) reduction work, a planned traffic circle at River Mill and Eagle Creek Road, and sidewalk work on Southeast 4th Avenue. The presenter said the proposed budget reflects large, one-time capital expenditures that will return the city to a lower annual project level after those upgrades are complete.
On utilities, staff said prior rate modeling showed increases around 3.25%; the revised plan underlying this budget models a water-rate adjustment currently projected near 5.61% to cover construction associated with the plant upgrade, with wastewater-rate impacts tapering as projects complete. Committee members asked for follow-up cost-benefit data on I&I and water-loss reductions; staff said flows have declined overall but that storm events complicate short-term comparisons and committed to producing clearer metrics.
Committee members also questioned whether policing services should remain contracted with Clackamas County Sheriff's Office or be brought fully in-house. Staff noted the county contract provides regional services (special teams, risk management) and that earlier comparisons had favored continuing the county arrangement; staff said a formal cost-analysis could be completed if the committee requested it.
The committee approved the budget by voice vote after a motion to adopt the $77,757,535 figure. Committee members also moved and approved a certification of a property-tax rate of 2.6749 per $1,000 of assessed value for collection. The budget and the committee-level actions will be forwarded to the city council for the June adoption hearing and the resolution to accept state revenue-sharing funds.
The meeting closed after those votes; staff said they will distribute quarterly finance reports to committee members and follow up on requested analyses such as an I&I report, a reserve study, and an RFP review of IT services.
