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City staff present $21.8M draft budget and propose 8% water, 5% sewer rate increases
Summary
City administrator Spencer Niebel presented a proposed FY2026–27 budget totaling $21.8 million and recommended an 8% water-rate increase and a 5% wastewater-rate increase to rebuild reserves and fund infrastructure needs; staff will return detailed bill impacts at the next meeting.
The Junction City budget committee heard a budget message and initial recommendations May 4 as staff opened review of the proposed fiscal year 2026–27 spending plan. Pro Tem City Administrator Spencer Niebel said the combined operating and capital proposal totals $21,800,000 and described the city’s fund-based accounting structure for transparent tracking of revenues and expenditures.
"In accordance with Oregon law and the city charter," Niebel told the committee, "it's my pleasure to present the proposed budget for the fiscal year that will begin on 07/01/2026 and end on 06/30/2027 to the budget committee for review, modification, and approval." He emphasized the document is a working draft and that final numbers will be refined before the May 18 meeting.
The draft increases personnel services to about $8,329,700, a roughly 8.4% rise from the current year driven largely by higher insurance costs (staff noted a projected 20% increase) and PERS. Niebel said personnel services account for the bulk of the general fund and are therefore key budget drivers.
On utilities, staff proposed an 8% increase in water rates and a 5% increase in wastewater rates beginning July 1, 2026. Public Works Director Gary said the 8% water increase would raise an average residential bill by roughly $2.50 per month. "8% on an average residential bill is about less than $3," Gary said. Staff also recommended no sanitation rate increase for the coming year.
Committee members asked staff to provide concrete examples showing household bill impacts at the May 18 meeting; staff agreed to supply comparables and updated packet sheets. The committee took no formal vote on the rate recommendations on May 4 and deferred final decisions until after additional financial detail is provided.
Next steps: staff will deliver updated line-item sheets and bill-impact examples before the next meeting so the committee can consider potential rate changes alongside capital and operating priorities.
