Inside Hermiston Newsletter
JUNE 2026
How We Build Hermiston's Budget
Setting an annual budget is one of city government’s most important roles. The City of Hermiston develops a July-June budget each year intended to reflect our community’s priorities and provide funding for everyday services.
Because the budget can be a complex document, I want to provide some context about how it is developed and highlight some of the key decisions included in the proposed 2026-27 budget.
The entire process is guided by the goals established by the City Council and staff during the annual January goal-setting session. Those priorities help shape funding decisions as we work to balance community needs, ongoing operations, and changing costs.
The proposed budget was reviewed by the Budget Committee and recommended for approval on May 14. The Hermiston City Council will consider adopting the budget on June 8. If you would like to review the complete proposed budget, it is available on the City of Hermiston website.
As with many organizations, the rising costs continue to pose a challenge to the City's finances. Public Employees Retirement System (PERS) contribution rates increased by 2.16%, property and liability insurance costs increased approximately 4%, and health insurance rates are expected to increase by nearly 27% midway through the fiscal year.
Even with those growing costs, the proposed budget is $123,137,736, about 4% less than 2025-26. Much of that decrease is the result of completing major capital projects such as the Public Library and Public Safety Center, as well as the completion of one-time transfers used to establish the Building Department Fund during the current fiscal year.
The budget also includes a 3% cost-of-living adjustment for all City employees and funding for a new longevity pay benefit that recognizes the dedication and service of long-tenured employees.
You can watch the budget committee meeting, review the document, and attend the June 8 City Council meeting if you’d like to make a comment.
Byron Smith,
Hermiston City Manager
Read the full June 2026 newsletter here.
Inside Hermiston is the monthly email newsletter for the City of Hermiston, including city news, council reports, and upcoming community events. Sign up to receive the newsletter in your inbox.
Previous Editions
Click the links below to view past editions of the Hermiston Insider, the City of Hermiston's monthly newsletter.
2026
January 2026
February 2026
March 2026
April 2026
May 2026
June 2026
2025
May 2025
June 2025
July 2025
August 2025
September 2025
October 2025
November 2025
December 2025
