Lake Oswego City Council Meeting – October 6, 2026

The Lake Oswego City Council met on Tuesday, October 6, 2026, at 7:00 PM. The meeting included proclamations, the adoption of the consent agenda, a public hearing and approval of a cable franchise renewal with Comcast, a study session on solid waste and recycling rates (resulting in no rate adjustment), a detailed mid-biennium budget review, a one-year operational update on the Lorac Recreation and Aquatics Center, and council committee reports. All votes were unanimous (6-0) with Councilor Wenlin excused.

Consent Calendar

• Ordinance 2981 and Ordinance 2983: Annexed property into the city.
• Resolution 26-35: Transferred roadway responsibility to Clackamas County for certain roadways.
• Resolution 26-53: Approved appointments to the ad hoc code audit technical advisory committee.
• A public hearing on Ordinance 2982 was removed at the applicant’s request.
• The consent agenda was adopted by a motion from Councilor Verdick, seconded by Councilor Corgan, with a vote of 6-0.

Public Comments & Testimony

• No members of the public signed up to speak during the public comment period or the cable franchise hearing.

Discussion Items

Proclamations

• Mayor recognized Meals on Wheels Month (50+ years of service in Lake Oswego), Domestic Violence Awareness Month, and Indigenous People's Day, emphasizing community care and recognition.
• A special recognition was given to Megan Phelan for nearly two decades of service, including acting city manager and HR director roles.

Cable Franchise Renewal (Comcast)

• Chief Technology Officer Weston Pay and MAC Interim Director Jonathan Kaufman presented a 10-year non-exclusive cable franchise (through June 2036) for Comcast.
• The franchise preserves the 5% cable franchise fee, expands HD access to all five PEG channels, and changes PEG/PCN funding from $0.80 per subscriber per month to 1.75% of gross cable revenue – estimated to increase Lake Oswego’s annual funding from ~$500,000 to ~$1.6 million.
• Council clarified the fee increase will be passed through to Comcast customers (estimated $0.80 to ~$2.50 per month on the video portion only).
• Motion to adopt Ordinance 2985 by Councilor Afkin, seconded by Councilor Mands; passed 6-0 after a brief public hearing with no testimony.

Solid Waste & Recycling Rate Review

• Sustainability Program Manager Sarah Stith and Lindsay Waldron of Bell & Associates presented the annual rate review for Republic Services.
• Republic’s adjusted return on revenues was 13.9% (2025), projected at 12.24% for 2026 after factoring labor, disposal, and inflation increases, offset by the Oregon Recycling Modernization Act (37.4% decrease in recycling processing cost).
• The projected return remained within the target range; no rate adjustment was proposed through December 2027.
• Council asked about tonnage trends (weights declining) and whether rates could be reduced if returns exceeded 8%; staff will follow up.

City Budget Annual Review (Mid-Biennium)

• Finance Director Sean Cross presented trends and budget-to-actuals for the general fund and other funds.
• Key trends: inflation now 3-4% vs. historical 2-3%; interest rates near 7-8%; unemployment near 4-5%; assessed values growing 3-4% annually; workers’ comp premiums doubled to ~$700,000/year; liability insurance rose to $1.5 million (from $200,000 in 2012) due in part to new facilities.
• General fund revenues (property taxes, franchise fees, state shared) are growing steadily but slower than expense growth.
• Fire department personnel costs are running over budget by $400,000-$600,000 annually due to overtime covering sick leave and paid leave Oregon (PLO) staffing gaps. Fire has used its biennial contingency and is “treading water.” Staff will return in January/February for a supplemental budget request.
• Parks and Recreation overall operating at ~$400,000 deficit, primarily driven by the Lorac dry side.
• Building department revenues are slowing (35% of budget through year one), indicating a downturn in construction.
• Tennis revenues significantly exceeded budget.
• Water and sewer funds: Capital projects (e.g., McVay pump station, Cornell Road pipeline) are on schedule or slightly delayed; the wastewater treatment plant will require a budget supplement.
• Lorac year-one analysis: Operating revenues exceeded budget by ~$250,000 but expenses were ~$600,000 over (personnel 75%, building maintenance and utilities 25%). The wet side (pool) is nearly breaking even; the dry side accounts for most of the deficit.
• Council noted the city can maintain current service levels but has little to no extra capacity for new projects. The East End urban renewal district ending will provide additional revenue.

Lorac One-Year Operational Update

• Parks Director Jeff Munro presented usage statistics from the first year (April 2025 – April 2026) and the first four months of the second year.
• First year totals: 1,337 swim lesson students; 6,000 aqua fitness participants; 94 lifeguards certified; 2.5 million golf balls dispensed; 5,400 open gym participants; 1,600 camp/class participants; 127 rentals with 10,000 guests; 3,000+ members sold with 19,000 membership uses; 22,000 drop-ins.
• Last four months: Additional 449 sports participants, 14,483 golf rounds, and 743 memberships sold; membership uses grew to 15,000 in just four months behind the first year’s 19,000.
• Notable facility improvements: upgraded chemical control system, automated pool filtration, improved dehumidification (reducing corrosion).
• Unplanned expenses: $34,000 for landscaping, $30,000 for security cameras, new furniture, and electrical upgrades for food carts – attributed to startup “learning curve” costs.
• Council praised staff for excellent service and noted the importance of finding efficiencies in the next nine months.

Council Reports & Updates

• Councilor Verdick: The Library Reuse Task Force has held two meetings; it was clarified that operating two libraries is not within the budget. The task force is proceeding with its charge.
• Councilor Afkin: Attended the Hillsdale–Lake Oswego Trail opening; also acknowledged a land donation offer that Parks & Rec declined due to location and cost.
• Councilor Mands: Reported on the Mayor’s Golf Tournament (successful) and the Cultural Exchange event (positive community engagement).
• Mayor: Provided updates on the Youth Leadership Council (first meeting, planning capstone project) and the Student Advisory Board (focusing on transportation issues). Also reported on regional work regarding the Supportive Housing Services measure oversight board – cities are advocating for a larger role in the region’s homelessness response.
• New City Manager Denzel Maxwell thanked everyone for the warm welcome.

Key Outcomes

• Consent agenda adopted 6-0.
• Ordinance 2985 (Comcast cable franchise) approved 6-0; 10-year term through 2036.
• No rate increase for Republic Services solid waste and recycling through at least December 2027.
• Finance Director will return with a supplemental budget request for the fire department (likely January/February 2027).
• Council directed staff to explore cost-saving opportunities in the Lorac dry side and other departments ahead of the next budget cycle.
• City Manager Maxwell began his role; will engage with budget and operational issues.