City Council Work Session

Minutes Agenda Packet City Website ↗

Council’s work session centered on the 2026 budget, with residents pressing the city on cemetery flower commitments, tax increases, and missing details behind the Neshotah Beach concession stand plan. Members also wrestled with a fee overhaul that would sharply raise building permit costs, but sent staff back for more options.

Budget public hearing drew pointed questions: residents challenged the city’s apparent move to stop ordering cemetery Memorial Day flowers despite past payments, questioned the tax increase and a big jump in “miscellaneous revenue,” and urged the council to fund a modest library increase to avoid service cuts.

Room tax leaders floated a new financing model for the Neshotah Beach concession stand that could cut the city’s direct general-fund share (staff said potentially from $250,000 to $100,000), but council members flagged the core risk: if the revenue doesn’t show up, taxpayers are still on the hook.

Council debated a fee-and-fines overhaul, especially building permits: the draft would shift to a percentage-of-project-cost model that could turn a typical new-home permit from $650 to $5,600 and a large commercial project from $410 to $14,000. Members asked for alternatives and directed staff to return with revised options.

Dean Hirvela

Said the cemetery “perpetual care flower fund” is separate from basic perpetual care, and warned the city told local flower suppliers it wouldn’t order flowers for 2026 even though residents paid expecting annual Memorial Day flowers. Asked the city to honor what people paid for and pointed to ordinances and receipts supporting that expectation.

Katherine Dahlke

Questioned the stated 2.54% tax increase and asked why “miscellaneous revenue” is up 107%. Also challenged why departments that underspent still get increases the next year, and later raised concerns about the Neshotah Beach concession stand project, saying she couldn’t find supporting materials and questioning whether the city followed proper steps and explored other funding options.

Kate (Library Board member)

Urged the council to approve the library’s requested 2% budget increase (about $13,635), saying the library didn’t get an increase the prior year and that without it the library may have to cut programming, staff, or hours.

Public Hearing on 2026 Proposed City Budget
The council held the legally required three-call public hearing on the 2026 budget, and the comments weren’t small stuff: residents questioned whether the city is backing away from long-standing cemetery flower commitments and pressed for clearer explanations of tax and revenue assumptions. The library’s requested 2% increase also came up directly, with a warning that flat funding could mean service cuts. This hearing put real pressure on the city to show its work—especially where residents believe the city is changing expectations without clearly saying so.
Public Input: Dean Hirvela raised concerns about stopping Memorial Day cemetery flowers tied to a separate flower fund; Katherine Dahlke questioned the tax increase and a 107% jump in miscellaneous revenue and asked why underspending departments still get increases; a Library Board member urged approval of the library’s 2% increase to avoid cuts. Third call had no speakers.
Discussion of Room Tax Proposal and Funding Commitment for Neshotah Beach Concession Stand
A Room Tax Commission representative (and a private investor tied to the Cobblestone Hotel) laid out an alternative financing concept for the Neshotah Beach building, arguing it could reduce the general-fund hit by pairing room tax dollars with event-space revenue, donations, and borrowing. Council members pushed on the obvious weak spot: if the projected revenue doesn’t materialize, the city still has to make the payments—meaning taxpayers carry the downside risk. Staff said the approach could be a “test case,” but residents should watch whether the city is building a plan around optimistic projections without clear guardrails.
Discussion of City Schedule of Fees & Fines (Item# 25-228 tabled from Nov 17, 2025 meeting)
Council revisited a fee overhaul that would raise several charges, but the flashpoint was building permits: the draft would move to a percentage-based fee that dramatically increases costs for new construction and large commercial projects. Staff argued the city has been undercharging and not covering inspection costs, while council members worried about sticker shock and asked for alternative structures (including caps and square-footage models). The council directed staff to bring back multiple revised options for the Dec. 1 meeting, signaling this isn’t settled and could still swing widely depending on what model they pick.
Discussion of Draft Fiscal Year 2026 City Budget
Staff walked through a $42 million 2026 budget with a proposed 3.8% levy increase and a mix of one-time fixes (land sales, debt premium, a cell-tower payment) that help balance the year but don’t solve long-term cost pressure. Council members debated priorities residents will feel directly: whether to restore cemetery flower funding, whether to fund library services at the level the Library Board requested, and how to handle special events funding if concession revenue is redirected to the general fund. No final decisions were made here, but the discussion shows the budget is being balanced with temporary patches and unresolved tradeoffs that will come back in the final vote.