City of Hermiston Brings Budget to Committee, Council

The City of Hermiston begins its public budget process on May 11, 2023 as city administration will share its proposed budget for the 2023-24 fiscal year with the Budget Committee.

The total budget of $97.8 million is approximately $32.6 million more than last year’s budget because of many capital investment projects and the addition of the new IT department. These additional expenditures will come from funding saved by the city to pay for long-planned water and sewer projects, dedicated state and federal funding, and additional revenue through IT contracts, and other increases driven by the growth of the community.

The general fund is about 18% of the total budget and covers some of the city’s basic operations and quality of life services for Hermiston. It includes police, finance, planning, library, parks and recreation and many other smaller funds. The proposed general fund revenue for 2023-24 is $15.6 million and the proposed expenditures is $17.6 million, a gap of about $2 million.

The general fund budget has grown over the past three years and has been covered by federal funding through the CARES Act and ARPA. With that source of funding now gone, city administration is proposing to make a two-year interfund loan of $2 million from the Utility and Hermiston Electric funds to cover the $2 million difference. This will give the city time to review priorities and sustainable long-term funding options.

The budget development process begins in January when elected city council members meet with the city manager and department heads to set goals. Department heads then submit their budget requests and the city manager and finance director develop a proposed budget.

In May the 18-member Budget Committee, which includes the mayor, city council members, and nine Hermiston residents, will review and discuss the budget, then make a recommendation for approval.

In June the City Council holds a second public hearing on the budget, at which point it adopts the budget and approves property tax levies. Any additional costs that arise during the year that have not been budgeted for must be approved by the City Council through a supplemental budget.

The city’s annual budget and financial reports can be found at www.hermiston.or.us/budget.