Wilsonville’s 2024-25 budget set to decrease from last year

Wilsonville’s budget is set to decrease compared to the year before, for the second time in as many years.

The city’s Budget Committee, which includes city councilors and residents, recommended Wednesday, May 15 that the City Council adopt the 2024-25 budget of $257.8 million — a 13.2% decrease from last year’s proposed budget of 297.2 million. The budget also decreased last year compared to 2022-23; at that time it was the first budget decrease in nearly a decade.

A primary reason for this year’s decrease is the 32.1% reduction in the capital improvement budget, due to the completion or near completion of large projects. The city’s new Public Works Complex was completed earlier this year, and Wilsonville Finance Director Keith Katko said the water treatment plant expansion is winding down. The city will not be starting any new key projects in the upcoming year, according to City Manager Bryan Cosgrove.

Of the 113 capital improvement projects budgeted for this year, the top five account for 58% of the capital improvement budget. The West Side Level B Reservoir project has the highest cost at $15.2 million, and the Boeckman ‘dip’ bridge is second highest at $10.8 million. The I-5 Pedestrian Bridge project has $6.1 million budgeted, while improvements to Boeckman Road and a facility yard expansion for South Metro Area Regional Transit will have $3.2 million and $2.7 million respectively.

Revenue from system development charges, which are one-time fees the city charges to developers to help fund infrastructure improvements, is projected to be down 27% from last year. Wilsonville Community Development Director said the anticipated SDC revenue is conservative, based on a conservative development forecast.

Inflation is affecting the city as well. Cosgrove said significant cost-drivers for the city are personnel, utilities, contracted services and materials and services, which have all increased in price over the last 18 months. He said rising costs for private sector workers, materials and services make conducting capital improvements more challenging.

“(The) current environment requires a more cautious approach to make key investments when the value of the dollar does not stretch nearly as far as it used to,” Cosgrove said.

The personnel services budget is up 9.1%, with an increase of 4.26 full time equivalent employee positions.

The operating budget, consisting of the city’s day-to-day expenses with categories including personnel and materials and services, saw an 8% increase. A main driver for this increase is the 14% increase in capital overlay expenses, or one-time expenditures on items like equipment and vehicles.

The transit fund has the largest capital outlay cost at $2 million for buses and equipment, which has grant funding. The facility yard expansion for bus storage is included in SMART’s budget, costing a total of $5 million with $1 million coming from the Statewide Transportation Improvement Fund. Public works is a close second at $1.8 million, which includes $1.5 million in building repairs and equipment for the water treatment plant.

A majority of revenue for the general fund comes from property taxes, which increased by 9% in revenue partially due to taxes from new homes in the Frog Pond area. The West Side Urban Renewal district will also close this year, bringing in approximately $320,000 for the city.

Urban renewal, also known as tax increment financing, freezes the tax base of a designated area for a period of time and any money brought in from increases in property values is directed to public improvement projects within the district.

The City Council will review and vote on the proposed budget next month.