West Linn City Council Meeting - June 23, 2025

The West Linn City Council met on Monday, June 23, 2025, at 6:15 PM in a hybrid format. The primary focus was the adoption of the FY 2026-2027 biennial budget, along with several related resolutions, fee updates, a supplemental budget, fund consolidations, and community grant allocations. All votes were unanimous (5-0). Council also heard reports from advisory groups and discussed long-term budget challenges, including a projected $9 million deficit by FY 2029.

Consent Calendar

• Early Renewal of AXON Body Worn Camera Contract: Approved unanimously. Mayor Bialostosky expressed gratitude to the Police Department and city staff, noting the program has been a "big success" for the community.

Public Comments & Testimony

• No members of the public provided comment during the public comment period or during any of the public hearings (state revenue sharing, state shared revenues, budget adoption, supplemental budget).

Discussion Items

• Resolution 2025-03 – State Revenue Sharing: Finance Director Breithaupt presented the annual declaration to receive state revenue sharing funds. The city estimates receiving $320,000 in FY 2026 and $320,000 in FY 2027, budgeted for general fund operations. A public hearing was held with no comments. Council adopted unanimously.
• Resolution 2025-04 – Certification for State Shared Revenues: This resolution certifies the city provides four or more municipal services (police, streets, sewer, storm, planning, water) to receive state shared revenues from cigarette, liquor, 911, and highway gas taxes. The projected gas tax is about $2.2 million per year based on League of Oregon Cities projections. Councilor Groner inquired about marijuana tax revenue; Director Breithaupt noted a prohibition in city code and that even without dispensaries, a per-capita portion could be collected if allowed. Mayor Bialostosky emphasized the importance of the 50/30/20 split for transportation funding. Adopted unanimously.
• Resolution 2025-05 – Master Fees and Charges Update: Annual update effective July 1, 2025. Key changes: System Development Charges increasing 2.78% (CPI-based); utility billing fees (water, sewer, surface, streets, parks) increasing 5% (per charter cap); administrative fees, business licenses, and sidewalk cafes increasing 5%; park rental fees up about $5. Council discussed the impact of the 5% cap on water/sewer/storm rates, with Councilor Bryck noting the Utility Advisory Board feels constrained. Council President Baumgardner expressed hope for revenue diversification to support affordable housing. Councilor Bonnington noted that fee increases reflect actual costs, not profit. Adopted unanimously.
• Resolution 2025-06 – Adoption of FY 2026-2027 Biennial Budget and Capital Improvement Plan: The total budget is $194,078,000. The permanent property tax rate remains $2.12 per $1,000 assessed value; bonded debt levy is $1,851,000 for FY 25/26 and $1,862,000 for FY 26/27. Changes from the proposed budget (approved by the Budget Committee) include: $70,000 for West Linn Chamber of Commerce ($35,000 each year), $60,000 increase for Main Street grants (offset by decreasing contingency by $60,000), and across-the-board reductions of $10,000 each from City Manager, Planning, IT, and HR budgets. Staff explained these cuts come from professional/technical services, software subscriptions, training, and delaying some contracts (e.g., Highway 43 implementation). Councilor Bonnington expressed concern about cutting from already strained departments rather than using contingency. Mayor Bialostosky noted the $9 million projected deficit for FY 2029 and stressed the need for proactive planning. Council adopted unanimously.
• Resolution 2025-07 – Supplemental Budget for 2024-2025 Biennium: Adjusts the current budget to account for: Council stipend increase ($100,000 due to voter-approved stipend), facilities cost increases ($161,000 for utilities/repairs), non-departmental debt service increase ($611,000 for subscription-based IT agreements), increased legal costs related to Oppenlander property litigation ($400,000), and library salary/benefit increase ($20,000). Offsetting reductions in City Manager, Economic Development, and contingency. A scrivener's error in the resolution title (incorrectly stating 2022-23 instead of 2024-25) was noted and corrected. Adopted unanimously.
• Resolution 2025-08 – Abolishing Special Revenue Funds: Abolishes the Parks and Recreation, Public Safety, Library, and Planning funds, consolidating their balances into the General Fund in accordance with ORS 294.353. Director Breithaupt explained that these funds were not restricted to specific purposes and created budgeting complexity. The consolidation has already been reflected in the adopted budget; the resolution authorizes the transfer after year-end audit. Adopted unanimously.
• Community Grants for FY 2026: $25,000 is available annually. This year, 24 requests totaling over $85,000 were received. The Budget Committee recommended allocations using established criteria (direct benefit to West Linn residents, no funding for advertising/promotion, no neighborhood associations, no fundraising events, no political advocacy). Councilor Groner requested a more objective scoring system (e.g., points per population served) for future cycles. Council President Baumgardner asked about follow-up communication with organizations that did not receive funding, suggesting possible partnerships (e.g., St. Vincent de Paul gift cards could coordinate with the food pantry). Staff noted some applications did not meet criteria (religious organization, gift card policy). Council adopted the Budget Committee recommendations unanimously.

Key Outcomes

• All resolutions (2025-03 through 2025-08) and the consent agenda were approved unanimously (5-0).
• FY 2026-2027 Biennial Budget adopted at $194,078,000 with a permanent tax rate of $2.12/$1,000 and bonded debt levies of $1.851M (FY 25/26) and $1.862M (FY 26/27).
• Master Fees and Charges updated effective July 1, 2025, with increases of 2.78% (SDCs), 5% (utilities, administrative fees, business licenses), and small park rental increases.
• Supplemental budget approved for the current biennium, adjusting appropriations to cover increased costs in council stipends, facilities, debt service, legal fees, and library salaries.
• Four special revenue funds abolished and consolidated into the General Fund.
• Community grant allocations approved as recommended by the Budget Committee; future discussion on improving the scoring process was scheduled.
• Forecasted $9 million general fund deficit in FY 2029 acknowledged; council committed to proactive meetings with staff and community to address structural budget issues.
• Next meeting: July 7, 2025 work session on long-range budget needs and opportunities.