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Warrenton staff warn state revenue-sharing cuts could bite city budget
Summary
Staff told the Warrenton budget committee the citys statewide revenue-sharing estimate dropped to $675,795 and warned that proposed state actions and an upcoming gas-tax ballot measure could reduce city shares further, potentially affecting public works services.
City staff told the Warrenton warrants and budget committee that statewide revenue-sharing receipts are expected to decline and that state policy changes could pose further risk to local revenues.
The Finance Director reported an estimate of "$675,795" for overall statewide revenue sharing and explained the reasons for the decline: lower highway-user fund receipts (driven by more fuel-efficient vehicles) and reduced alcohol-tax revenue in part due to OLCC bond payments. "There have been decreases in highway fund revenues," the Finance Director said, and added reduced alcohol sales and OLCC warehouse bond expenses among causes.
Committee members and staff also discussed policy risk. Chair noted that "the state legislature is trying to eliminate the revenue share to cities, which, if you look at the budget, could be a significant hit to public works." Staff cautioned that outcomes depend on both the legislatures actions and the results of a gas-tax ballot measure, and urged the committee to treat revenues conservatively.
Staff closed the topic by stressing that the budget the committee reviewed assumes conservative revenue estimates to avoid midyear adjustments if receipts fall short. The committee noted the warning for future deliberations as the commission finalizes adoption.
