City Council Approves Annual Budget
The Hermiston City Council approved 2023-24 budget at its June 12 regular meeting. It will go into effect on July 1, 2023.
A recording of the meeting is available at the City of Hermiston's YouTube channel.
The total budget of $96.3 million is approximately $30.9 million more than last year’s budget because of capital investment projects and the addition of the new IT department. Nearly two-thirds of that increase is paid for entirely by private development upgrades to utility systems. The remaining 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, public transit, and many other smaller departments. The proposed general fund revenue for 2023-24 is $15.6 million and the proposed expenditures is $16.3 million, a gap of about $673,000.
The reduction in revenue from 2022-23 is due to the expiration of Federal CARES acts funding. This required several adjustments to ensure a balanced budget. The City of Hermiston is reviewing short- and long-term budget options to continue providing the essential community services desired by Hermiston community members.
The budget development process began 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, reviewed and discussed the budget in two separate sessions, then made a request for a revised budget that was about $1.3 million less than the original budget presented by city administration.
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 and budget meetings are open to the public.
