OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Bend City Council Meeting Summary - May 7, 2025

City Council — Wednesday, May 7, 2025
BodyBend, Oregon
SessionCity Council
DateWednesday, May 7, 2025
StatusFILED
Video Record
0:00 / 3:30:33

Transcript — Verbatim
0:40

The city of Bend and Bend Urban Renewal Agency Budget Committee meeting.

0:46

And like to start with introductions.

0:48

And Jerry, I think we'll just start over here with you and just go around the guys if you could just introduce yourself.

0:57

That's it.

0:58

Committee member.

0:59

Committee.

1:00

All right.

1:01

Gina Franzosa, City Councillor.

1:05

Committee member.

1:06

Councilor Ariel Mendez, he him.

1:08

Mike Riley, EM, City Councillor, and Budget Committee member.

1:12

Chuck Peters, budget committee.

1:16

Cat Mas Strangelo, committee member and chair of the budget committee.

1:21

Megan Perkins, she, her, Ben City Councillor.

1:23

Emily Cortez, committee member, she her A.

1:27

Yeah, uh Steve Platt, Ben City Councillor Gee.

1:30

Trevor Campbell, budget committee.

1:33

Right.

1:34

And with that, I am going to turn it over to Eric so that we can receive the city manager's budget committee message.

1:41

Great.

1:42

We were just talking about we are so we get excited actually.

1:45

There's a lot of work that has gone into this budget over the past uh probably eight months.

1:50

I think we we kicked off the budget in late October.

1:53

Uh so it's really my honor to present the proposed 25-27 biannual budget.

1:58

This 1.48 billion plan, or it's which is an increase of 9% over the current biennium, is more than a financial document.

2:06

It's a roadmap for achieving the city council's vision for Bend, grounded in our guiding principles, safety and belonging, inclusive governance, environment and climate, fiscal stewardship, and partnership.

2:17

This budget is shaped by both opportunity and challenge, then continues to grow, though at a slower pace.

2:23

Rising costs and economic uncertainty at the state and federal levels have created a structural imbalance between revenue and expenses.

2:30

To address this, we've prioritized sustainable funding, conservative spending, and a strategic use of reserves and one-time revenues while maintaining core services and advancing council goals.

2:41

Thanks to the strong financial policies and ongoing contingency planning.

2:57

Annual operating revenues are projected to grow modestly, uh, 4.5% from fiscal 25 to 26 and 3% from fiscal 26 to 27.

3:07

Highlighting the importance of careful planning and cost control as we work to align revenues with rising service demands.

3:14

Property taxes are projected to grow by five four point five percent annually, supporting police, fire and street services, utility rate adjustments and development fee increases will help maintain essential infrastructure and improve long-term financial sustainability.

3:29

The second phase of the transportation fee is expected to generate 10 million annually, but continued general fund support also 10 million is still needed to meet service demands and rising costs.

3:49

An increase aligned with our population growth.

4:35

Uh to score housing goals, we've invested 4.9 million in federal pro housing grant funds to improve permit efficiency, remove zoning barriers, and support housing, land acquisitions, and staffing, laying the groundwork for more affordable housing opportunities.

4:48

A dedicated housing production strategy work group will explore new financing and policy tools under the heading of transportation and infrastructure.

4:56

Uh over 47 million is allocated to improve safety and mobility.

5:00

This includes 15.9 million for projects like Hawthorne Crossing and Franklin Avenue, 23.2 million for the Bend Bikeway and intersection upgrades, and 8.9 million for the septic to sewer program.

5:12

The transportation fee will fund four new FTEs, full-time equivalent employees to enhance street maintenance and implement the transportation system plan.

5:20

Under the heading of climate resiliency, we're investing in wildfire prevention, water conservation, and electrification policy development.

5:27

This includes 200,000 annually for climate outreach, 270,000 to expand water conservation programs and a new fire and rescue F uh FTE focused on wildfire awareness and hazard assessments.

5:39

In public safety, we're enhancing our traffic enforcement through automated traffic enforcement technology.

5:44

A contracts coming before council here soon.

5:46

And supporting livability focused police teams with two new FTEs.

5:51

These investments respond directly to community priorities and support cross-departmental collaboration.

5:57

Under economic prosperity, we're launching a new economic development strategic plan, reclassifying a vacant position into an economic development officer.

6:05

We have interviews, final interviews this Friday, and consolidating funds to support traded sector recruitment, small business growth, and workforce development.

6:13

We're also investing 900,000 in a city hall master plan and exploring public-private partnerships to leverage city assets.

6:20

And then lastly, accessible and effective city government.

6:23

We're redesigning the city's website, expanding community outreach through consulting services, and launching a one-city strategic plan to align work across departments.

6:32

We're also using some of those pro housing grant funds to improve private development engineering command process.

6:37

Despite economic uncertainties, this budget reflects our commitment to innovation, efficiency, and long-term sustainability through strategic investments and strong partnerships.

6:47

We're laying the foundation for a resilient, inclusive, and thriving bet.

6:52

Thank you.

6:55

So with that, I think we have the budgets in front of you.

6:58

We're going to turn it over to Dan and Melissa to walk through kind of what's to come.

7:04

We're going to solicit some questions that you might have to help guide some of our work.

7:08

Steve, did you get this pretty short?

7:13

Oh, we didn't.

Discussion Breakdown — Share of Meeting
Water And Wastewater Management███████████████████19%
Budget Equity Analysis██████████10%
Public Engagement██████████10%
Transportation Fee█████████9%
Transportation Infrastructure██████6%
System Development Charges██████6%
Technology and Innovation█████5%
Historic Preservation████4%
Emergency Management████4%
Summary of Proceedings

Bend City Council Meeting Summary - May 7, 2025

The Bend City Council held a combined Budget Committee meeting, Work Session, and Regular Session on May 7, 2025, from 5:00 PM to approximately 9:00 PM. The meeting covered the proposed 2025-2027 biennial budget, updates on the Outback Water Filtration Facility and the SPARK! continuous improvement program, adoption of the Phase 2 Transportation Fee, and numerous other items including contracts, ordinances, and proclamations.

Budget Committee Session (5:00 PM)

  • The City Manager presented the proposed 2025-2027 biennial budget of $1.48 billion, a 9% increase over the current biennium. Key themes included sustainable funding, conservative spending, and strategic use of reserves. Revenue growth is projected at 4.5% (FY26) and 3% (FY27). The budget includes 14.35 new full-time equivalent positions (1.7% increase), primarily in public safety, transportation, and utilities.
  • The Budget Committee reviewed the budget binder structure, roles, and responsibilities. Committee members raised questions about operating reserves (projected to decline to 18%), reliance on investment returns, and new FTEs.
  • A public hearing on proposed uses of state shared revenues for FY2025-2026 received no comments and was closed.
  • Next steps: Budget deliberations on May 13-14, 2025, at Fire Station 306; fee review on June 4, 2025; and budget adoption by City Council on June 18, 2025.

Work Session (5:30 PM)

Outback Water Filtration Facility Project Update (30 minutes):

  • Staff presented the need for a 48-acre land acquisition from the U.S. Forest Service to accommodate future water infrastructure (reservoirs, wells, pre-treatment, and in-conduit hydropower). The existing 15-acre site is fully built out. A Townsite Act process is underway, with a 30-day public comment period on the draft Environmental Assessment expected in June or July 2025. Public comment periods for land use and rezoning with Deschutes County will also occur.
  • Pre-treatment (to filter sediment) and in-conduit hydropower projects are estimated at $30 million and $20 million, respectively. A FEMA grant for $50 million was terminated unexpectedly, creating a funding gap. Staff continue to seek other funding sources.
  • The project supports climate resiliency and wildfire preparedness, including a potential water tank fill station for firefighting.

SPARK! Continuous Improvement Program (15 minutes):

  • The SPARK! program, launched in 2021, empowers employees to improve operations. Examples include the Water Services billing team, which saved 2,000 hours per year, reduced non-pay shutoffs from double digits to single digits weekly, and cut new employee turnover from 55% to 0% since September 2024.
  • The program has trained 163 employees and supported 11 new policies. The first annual Sparky Awards recognized 22 nominations across six categories.
  • Future focus includes operational optimization, workforce development, and supporting council goals on permitting and water conservation.

Executive Session (30 minutes):

  • The Council held an executive session under ORS 192.660(2)(h) to consult with legal counsel regarding current litigation or litigation likely to be filed. No decisions were made. The session ended at approximately 6:30 PM, and the Council reconvened in open session for the Regular Meeting at 7:00 PM.

Regular Session (7:00 PM)

Consent Calendar:

  • Approved minutes from April 16, 2025, and April 23, 2025 (joint meeting with Confederated Tribes of Warm Springs).
  • Accepted OLCC report, March monthly financial report, and quarterly investment report.
  • Authorized agreement with Motorola Solutions for 86 portable radios ($807,077, with $40,300 amendment authority).
  • Authorized purchase of an XBroom street sweeper from Velocity Truck Centers ($376,525.21).
  • Authorized amendment to Cline Falls Counseling contract for mental health services (increase of $123,000, total $484,000, one-year extension).
  • Adopted resolution amending Clean Water State Revolving Fund loan for Awbrey Glen and Westside Pump Stations (increase of $2,476,900, total $7,786,900) – pulled from consent for discussion, then approved.

Public Comments & Testimony:

  • John Halen advocated for a tree planting program and increased enforcement of off-leash dog rules in parks.
  • Sherry Foster expressed frustration with traffic congestion on Portland Avenue and the Greenwood road diet, asking when the two lanes would be restored. The Mayor noted the decision was made by the previous council, and a check-in occurred in March 2025; further discussion is scheduled for September 2025.
  • Todd Torrison urged the Council to return the Reed Market roundabout expansion to a FY25 project, citing safety and evacuation concerns. He noted that the Bent MPO's Unified Planning Work Program shows completion in FY25.

Discussion Items:

  • First Reading – Graffiti Code Amendment (BMC 13.40): Transferred enforcement from Police to Code Enforcement, removed nuisance property definitions, and clarified that approved sign markings are not graffiti. Approved unanimously.
  • First Reading – System Development Charges (SDC) Code Amendment (BMC 12.10): Technical, non-substantive clarifications including payment timing, installment options (5- or 10-year terms), and refund language. Approved unanimously.
  • Informational Presentation – Supplemental SDC for Southeast Area Plan Pump Station: Staff presented a methodology to recover 50% of the $11 million project cost (the other 50% covered by the city) from future development. The SDC would be consistent with citywide land use categories and include exemptions for child care and affordable housing. Council directed staff to proceed with the 90-day notice and public comment process, with a 24-hour pre-hearing comment deadline.
  • Public Hearing and Adoption – Phase 2 Transportation Fee Resolution: The fee, effective July 1, 2025, will generate $10 million annually (up from $5 million in Phase 1). Key features: five non-residential bins, lower rates for medical/child care/restaurant uses, short-term rental surcharge, doubling of lodging accommodation rate, and removal of the tiered rate for buildings over 50,000 sq ft. The Bend Chamber of Commerce expressed support with concerns about manufacturing. The fee was adopted unanimously.
  • Adoption – Emergency Operations Plan Update: The plan shifts to an Incident Command System/ Emergency Support Function model, aligning with state and county operations. It includes updated training requirements and will be updated every two years. Adopted unanimously.
  • Approval – 2025-2026 CDBG Annual Action Plan: Funded four projects: Thrive Central Oregon (housing navigation for 500 persons), Volunteers in Medicine (healthcare for 40 uninsured), Saving Grace (support for 58 domestic violence survivors), and City of Bend sidewalk project in census tracts 15 and 18 (improving connectivity for low-income and disabled residents). Approved unanimously.
  • Authorization – Contract for West View, Newberry/Twin Lakes, Parkwood Septic to Sewer Project: Contract with K&E Excavating, Inc. for $2,956,703 (10% under estimate), plus $295,000 in change order authority. The project will serve 64 properties, with 100% participation in two of three areas. Approved unanimously.
  • Initiation – Bear Creek Road Right-of-Way Legalization: The Council initiated the process to legalize the existing road alignment on Bear Creek Road between Craven Road and the eastern Urban Growth Boundary. A public hearing will follow. Approved unanimously.
  • Authorization – Contract for Bear Creek Road and 27th Street Improvements Project: Contract with K&E Excavating, Inc. for $7,487,257 (under budget), plus $750,000 change order authority. The project includes a roundabout at Purcell/Pettigrew/Bear Creek, shared-use paths, and sidewalk infill. Construction will occur in two phases (summer 2025 and spring 2026), with a full closure of the intersection this summer. The project is funded by the General Obligation Bond, water, and sewer funds. Approved unanimously.
  • Second Reading – Stone Creek Master Plan Amendment: Redesignated 1.11 acres from Public/Community Use to Multi-Unit Residential to allow housing on the Silver Rail Elementary School site. Adopted by roll call (6-0, Councilor Norris recused).
  • Second Reading – Permanent Bike Share Program Ordinance: Amended BMC Chapter 7.60 to establish a permanent bike share program. Adopted by roll call (6-0-1, Mayor Pro Tem Perkins abstained).

Key Outcomes:

  • The Council adopted the Phase 2 Transportation Fee, effective July 1, 2025, generating $10 million annually.
  • The Council approved contracts for the Septic to Sewer program and the Bear Creek/27th Street improvements, both awarded to K&E Excavating, Inc.
  • The Council initiated the legalization of Bear Creek Road right-of-way and set the stage for a public hearing.
  • The Council approved the 2025-2026 CDBG Annual Action Plan, funding housing, health, and infrastructure projects.
  • The Council adopted the updated Emergency Operations Plan and permanent bike share program.
  • The City Manager reported that the temporary safe stay at Juniper Ridge is operational, 20-30 new camps have formed since the closure of China Hat, and shelter utilization is at 98% with 537 beds available. The Portland/Reed Market roundabout is expected to open fully before Memorial Day weekend.

Meeting Transcript

The city of Bend and Bend Urban Renewal Agency Budget Committee meeting. And like to start with introductions. And Jerry, I think we'll just start over here with you and just go around the guys if you could just introduce yourself. That's it. Committee member. Committee. All right. Gina Franzosa, City Councillor. Committee member. Councilor Ariel Mendez, he him. Mike Riley, EM, City Councillor, and Budget Committee member. Chuck Peters, budget committee. Cat Mas Strangelo, committee member and chair of the budget committee. Megan Perkins, she, her, Ben City Councillor. Emily Cortez, committee member, she her A. Yeah, uh Steve Platt, Ben City Councillor Gee. Trevor Campbell, budget committee. Right. And with that, I am going to turn it over to Eric so that we can receive the city manager's budget committee message. Great. We were just talking about we are so we get excited actually. There's a lot of work that has gone into this budget over the past uh probably eight months. I think we we kicked off the budget in late October. Uh so it's really my honor to present the proposed 25-27 biannual budget. This 1.48 billion plan, or it's which is an increase of 9% over the current biennium, is more than a financial document. It's a roadmap for achieving the city council's vision for Bend, grounded in our guiding principles, safety and belonging, inclusive governance, environment and climate, fiscal stewardship, and partnership. This budget is shaped by both opportunity and challenge, then continues to grow, though at a slower pace. Rising costs and economic uncertainty at the state and federal levels have created a structural imbalance between revenue and expenses. To address this, we've prioritized sustainable funding, conservative spending, and a strategic use of reserves and one-time revenues while maintaining core services and advancing council goals. Thanks to the strong financial policies and ongoing contingency planning. Annual operating revenues are projected to grow modestly, uh, 4.5% from fiscal 25 to 26 and 3% from fiscal 26 to 27. Highlighting the importance of careful planning and cost control as we work to align revenues with rising service demands. Property taxes are projected to grow by five four point five percent annually, supporting police, fire and street services, utility rate adjustments and development fee increases will help maintain essential infrastructure and improve long-term financial sustainability. The second phase of the transportation fee is expected to generate 10 million annually, but continued general fund support also 10 million is still needed to meet service demands and rising costs. An increase aligned with our population growth. Uh to score housing goals, we've invested 4.9 million in federal pro housing grant funds to improve permit efficiency, remove zoning barriers, and support housing, land acquisitions, and staffing, laying the groundwork for more affordable housing opportunities. A dedicated housing production strategy work group will explore new financing and policy tools under the heading of transportation and infrastructure. Uh over 47 million is allocated to improve safety and mobility. This includes 15.9 million for projects like Hawthorne Crossing and Franklin Avenue, 23.2 million for the Bend Bikeway and intersection upgrades, and 8.9 million for the septic to sewer program. The transportation fee will fund four new FTEs, full-time equivalent employees to enhance street maintenance and implement the transportation system plan. Under the heading of climate resiliency, we're investing in wildfire prevention, water conservation, and electrification policy development. This includes 200,000 annually for climate outreach, 270,000 to expand water conservation programs and a new fire and rescue F uh FTE focused on wildfire awareness and hazard assessments. In public safety, we're enhancing our traffic enforcement through automated traffic enforcement technology. A contracts coming before council here soon. And supporting livability focused police teams with two new FTEs. These investments respond directly to community priorities and support cross-departmental collaboration. Under economic prosperity, we're launching a new economic development strategic plan, reclassifying a vacant position into an economic development officer. We have interviews, final interviews this Friday, and consolidating funds to support traded sector recruitment, small business growth, and workforce development. We're also investing 900,000 in a city hall master plan and exploring public-private partnerships to leverage city assets. And then lastly, accessible and effective city government.

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