Beaverton Budget Committee Meeting - May 28, 2026

The first of two budget committee meetings was called to order at 7:00 PM to review the proposed FY26-27 budget. The committee elected a chair and vice chair, approved prior meeting minutes, and received detailed presentations from the interim city manager and finance director. The budget addresses a $16.2 million structural deficit through a combination of revenue measures (including a proposed $9.50 monthly general services fee) and expense reductions, including the elimination of 10 positions (6 vacant, 4 filled). No public testimony was offered.

Consent Calendar

• Approval of Minutes (May 5 and May 19, 2025): Motion carried with 10 yes, 1 abstain (Sundberg), and 3 absent (Hassan, Payne, Campbell). New committee members abstained per custom.

Public Comments & Testimony

• No members of the public addressed the committee.

Discussion Items

• Election of Chair and Vice Chair: Councilor Teter nominated Councilor Duggar for chair; Duggar accepted. The roll call vote was 11 yes, 0 no, 3 absent. Councilor Hartmeyer Prigg nominated community member Kia Sundberg for vice chair; Sundberg accepted. The vote was 11 yes, 0 no, 3 absent.
• Mayor’s Opening Remarks: Mayor Beatty thanked staff and highlighted the $16.2 million structural deficit, emphasizing the need to protect vulnerable residents, reduce reliance on outside consultants, and ensure the budget reflects council priorities. She noted a proposed $9.50 monthly fee, rising utility rates, and cuts to services such as Library on Wheels, DUII enforcement, and the police wellness officer.
• City Manager’s Budget Message (Elizabeth Coffee): Presented the citywide budget of approximately $384 million. Key points:
  • The city faces a persistent gap due to Oregon property tax restrictions (3% annual growth limit) and rising expenses (8% healthcare, 7% retirement, 6% materials/services).
  • Since FY22-23, the city has exceeded its initial $9.6 million expense reduction goal, achieving $11 million in cuts through materials/services reductions and personnel eliminations.
  • Proposed FY26-27 budget uses $2.5 million in one-time reserves while maintaining reserve policy targets (11% at budget adoption, 17% year-end).
  • Revenue includes a proposed general services fee ($5.3 million assumed), increased photo radar fines, and updated cost allocation methodology.
  • Expense reductions: 10 positions eliminated (6 vacant, 4 filled), including two police officer positions (DUII enforcement reduced to 4 days/week; police wellness officer coordination eliminated), a police support specialist, an associate planner, an affordable housing program coordinator, a senior program manager, and the chief equity officer. The Office of Equity will be integrated into the community engagement team.
  • Other cuts: 10% reduction to business support partnerships, minor reductions to arts grants, 50% reduction to down payment assistance, elimination of Allen Boulevard building improvement program, and reduction in library collections and outreach (part-time outreach specialist eliminated).
  • Library fund: 54% funded by Washington County Cooperative Library Service; reserves are being drawn down, requiring a long-term funding plan.
  • Transient lodging tax (TLT): Revenue is falling short of covering debt service, building envelope, and PRCA operating contribution. The city proposes a mid-year TLT increase (estimated $460,000 in FY27) to help fund the arts program, reducing the general fund transfer. The PRCA operating contribution is reduced from $1.6 million to $1.4 million.
• General Fund Overview (Susan Cole, Assistant Finance Director): Total general fund resources of $124.2 million (including $17.8 million beginning fund balance). Operating expenditures of $106 million, with a $1.8 million gap filled by one-time resources. Police department comprises 44% of general fund ($54.7 million). Personnel costs are 72% of the general fund. The city’s assessed valuation is $13.3 billion, with 3.7% growth assumed.
• Committee Questions and Discussion:
  • Kia Sundberg asked about the projected gap over five years (approaching $15-16 million in FY28, over $20 million by FY30). Also asked about one-time revenues and reserve policy.
  • Councilor Beatty inquired about moving water utility staff to the Griffith Building (temporary band-aid to relieve overcrowding at operations yard; water fund will pay its share, freeing general fund).
  • Councilor Teter raised concerns about the impact of eliminating the associate planner on long-range planning capacity (staff acknowledged it will slow work and force prioritization). Also noted the DUII enforcement cut will reduce service coverage.
  • Kia Sundberg questioned the general services fee and affordability, asking whether a core services assessment had been done. City manager responded that further cuts would impact core services like public safety, and the utility assistance program will be evaluated.
  • Councilor Kimmy requested detailed information on arts program spending before the next meeting.
  • Councilor Hartmeyer Prigg referenced the April special meeting on service evaluations as a useful resource.

Key Outcomes

• Elected Chair and Vice Chair: Councilor Duggar (chair), Kia Sundberg (vice chair).
• Approved Minutes from May 5 and May 19, 2025.
• Next Steps:
  • Second budget committee meeting on June 2, 2026 will cover public works funds and capital improvement plan. Budget committee will consider amendments and make a recommendation to city council.
  • City council will consider adoption on June 16, 2026 (public hearing on general services fee on July 7, 2026).
  • Committee members are encouraged to submit potential amendments to staff (Susan Cole or Elizabeth Coffee) for legal compliance.
  • The new fiscal year begins July 1, 2026.