**City of Prairie City**

**Budget Meeting**

**April 29, 2026**

**Attendance:**

Mayor Bradford

Councilor McClung

Councilor Davis

Councilor Clark

Councilor Bernard

Councilor Coburn

Ben Richardson, Museum

Marvin Rynearson, Fire Chief

Mike Patterson, Public Works

Rob Gaslin, CPA

Shonalie Oakes, City Recorder

**Budget Committee:**

Loreli Clapp

Wanda Patterson

Ed Clark

Larry Johnson

Mayor Bradford called the meeting to order at 6:01 P.M. the roll was called and pledge of allegiance recited.

**Agenda Amendment**

**Motion:** Councilor McClung moved to amend the agenda to include 4th of July discussions/Displays.

**Second:** Councilor Bernard

**Vote: Passed unanimously**

**Budget Committee Appointments**

* **Budget Committee Members**
  + **Motion:** Councilor McClung moved to appoint Wanda Patterson, Ed Clark, Lorelei Clapp to the Budget Committee
* **Second:** Councilor Coburn
* **Vote:** Passed unanimously
* **Budget Committee Chair**
  + Candidates: Lorelei Clapp; Larry Johnson and Wanda Patterson (declined due to potential conflict of interest, recommended not to serve as chair)
  + **Motion to elect:** Councilor Coburn moved to appoint Lorelei Clapp as Chair
  + **Second:** Councilor Bernard
  + **Vote:** Passed unanimously
* **Delegate Budget Officer**
  + **Motion:** Councilor Ed Clark moved to appoint CPA Rob Gaslin as Budget Officer
  + **Second:** Councilor Scott Clark
  + **Vote:** Passed unanimously

**Budget Review – Key Points and Guidance**

* **Process**
  + Proposed figures are admin’s starting point; Committee to adjust as needed.
  + No final decisions are required at this meeting; members to review and submit questions before next session.
  + Appropriations are controlled at category level (e.g., Personnel Services, Materials & Services), not individual line items.
* S**taffing Assumptions**
  + Public Works: Budget includes 3 staff + Public Works Director (position vacant). Consensus to keep funding in Personnel Services to allow flexibility; unused funds remain unspent and restricted to wages.

**General Fund – Administration (Expenditures)**

* Personnel Services: Intentionally high due to PW Director placeholder.
* Materials & Services highlights:
  + 911 Services: ~$2,000
  + Advertising: ~$2,000
  + Bank Fees/Letter of Credit Landfill: Budgeted $5,000 (renewed; paid after March)
  + Elections: Budgeted $4,000 (recall in prior year drove spike)
  + Community Enhancement: ~$4,000
  + Computer/IT: Same as last year; needs include Marvin’s computer (covered in Fire budget) and potential Public Works device; some flexibility retained.
  + Donations: $2,000
  + News/Radio: Increased to ~$10,000 (ongoing monthly)
  + Insurance: +~15%
  + Holiday Celebration: Budgeted $20,000 (current year projected spend lower but subject to late purchases)
  + Law Enforcement: $0 (consistent with direction; note alternative of transferring equivalent to Streets as SRS replacement)
  + Legal & Audit: Slight increase (audit ~ $12,500 total included)
  + Maintenance & Repair (City Hall): Historically under $5,000
  + Miscellaneous: Small buffer
  + Office Supplies: $4,000
  + Postage: ~$1,500
  + Ambulance Housing (PW building): ~$5,000
  + Grants (Parks): $45,000 expense in current year; reimbursement expected in revenues next year
  + Travel & Training: $10,000 (encourage Council training)
  + Other Professional Services: ~$15,000 (admin, engineering, etc.; prior year included grant costs now separated)
  + City Utilities: Increased (commercial water rate increases flow to Water Fund)
* Transfers Out (General Fund)
  + To Water: Significant subsidy required to balance Water (concern; rates should cover water costs)
  + To Roads: Continues to replace lost SRS funding
  + To Capital Improvements: For City Hall building/entry way
  + Even with transfers (~$426,000), contingency ~ $133,000

**General Fund – Administration (Revenues)**

* Beginning Cash: ~$534,000
* Interest: As projected
* Property Tax; Franchise Fees: Franchise spike in current year due to catch-up; budget set at $70,000
* State Shared Revenues: Liquor, Cigarette, etc.
* Site Lease (Cell Tower): Continued
* Park Grant Reimbursement: $35,000 roll-forward expected next year

**Fire Department**

* Personnel Services: $30,000 (contingent on staffing grant; only spend if awarded)
* Breathing Apparatus: Increased to catch up on deferred purchases
* Gas & Oil: ~$2,000
* Computer/Communications: Includes Marvin’s computer replacement/upgrade
* Command Vehicle: $18,000 placeholder; intent to seek surplus/auction vehicle likely below this amount
* Revenues: minimal Christmas donations and $30,000 staffing grant (if awarded)

**Parks**

* Maintenance & Repair: Budget $8,000 (recent one-time costs: drinking fountain, bathroom painting planned)
* Christmas Lighting: $500 (no major new purchases planned)
* Utilities: High and increasing (~$40,000 budget) due to doubled internal water/sewer commercial rates (flows to Water Fund)
* Campground/Shower Revenues: Lower due to fewer long-term tenants; showers reliability affects usage; consider repairs with County Parks funds if available
* Discussion: Explore County funds (~$160,000 referenced) for Depot Park maintenance/bathroom replacement; grants can’t be split across two parks

**Museum**

* Operating Loss (budgeted): ~$9,735 including allocations; actual cash savings to close would be ~$4,000 after removing allocations
* Actual M&S spend trending low; $5,000 YTD pace (excluding personnel allocations)
* Advertising costs increased (ongoing publications)
* Small “computer/software” charge (~$47) to be verified
* Revenues: $5,000 Chamber donation; receipts in line with prior years

**Landfill**

* Expenditures increased unexpectedly this year; budget set at $4,500
* Contingency reduced to ~$5,000; if costs remain elevated, future General Fund subsidy may be needed

**Streets (Roads)**

* Personnel Services: Overstated due to staffing assumption
* Materials & Services:
  + Fuel: Increased assumption (snow years drive higher spend)
  + Shop/Supplies: Increased for new staff ramp-up
  + Streetlights: ~$21,000 (utilities remain high)
  + Maintenance: ~$6,000 typical; Striping: ~$9,000
  + Tree Trimming: Increased need anticipated
  + Vehicle Maintenance: Historically variable; past high years $15–$18k
* Capital Outlay: $250,000 project rolled to next year (grant-funded); total project cost estimated ~ $400,000
* Revenues:
  + Beginning Cash: ~$94,000
  + State Gas Tax: Reduced to ~$65,000
  + Timber Receipts (SRS): $0 (loss of ~$100,000 historical support)
  + General Fund Transfer: ~$108,000
* Guidance: Consider cost controls; define strategy for level of General Fund subsidy vs. service level

**Capital Improvements (City Facilities)**

* City Hall Remodel: $200,000 budget (estimate; includes ADA/front approach work)
  + Funding: $40,000 grant; $55,000 transfer from General Fund
  + No quotes yet

**Public Works Capital (Shared Equipment)**

* Equipment Replacement: $108,000 (list maintained; mix of needed and contingency replacements)
* Funding via transfers from Water/Sewer/Streets (~$34,401 combined)

**Wastewater Debt Reserve and Reserve Fund**

* Required balances maintained per covenants; transfers continue until targets reached (to $310,000 by 2029)

**Water Utility**

* Major Concerns: Rising costs; significant General Fund subsidy; potential emergency fuel for generator at Faiman well; power line project delays
* Materials & Services – Key Changes:
  + Gas & Oil (Generator Fuel): Increase to $50,000 (consensus) to cover potential July–Sept operation depending on hours/day and fuel prices
  + Generator Maintenance: DPF/emissions service estimated ~$7,000–$8,000 (parts ~$5,000 plus labor); budgeted within increased maintenance
  + Chlorine: Reduce next year to $25,000 (on-hand inventory from tank changeover should last close to a year)
  + Other Professional Services: ~$73,000 (Budget Officer, engineering, Water Master Plan ~ $50,000; $20,000 grant offset)
* Capital Projects:
  + Power Line to Well: $150,000 (loan-funded; Business Oregon granted 9-month extension; easement unresolved; legal in process)
  + Water Line Replacement: $150,000 (project list includes 7th Street/Cayley, fire hydrant additions incl. shop, and known pressure loss; $50,000 budgeted current year, ~ $10,000 spent in April)
* Revenues:
  + Beginning Cash: ~$680,000
  + Water Service: Increased under new rate plan (full year)
  + Transfers In (GF): ~$262,000 to balance
  + Debt Proceeds: $150,000 for power line
  + Grants: $20,000 (Water Master Plan); separate meter grant to cover meter project and installation escalation
* Operational Notes:
  + Power line earliest completion: End of July (optimistic; easement dependent)
  + Water meters: ~488 total; plan to phase order/installation in batches (~100 at a time) starting mid-to-late June pending bid/contract/grant compliance
  + Rate strategy: Future council discussion; meters may improve revenue accuracy; further increases may be required depending on outcomes
  + Unappropriated Ending Fund Balance: ~$550,000 required; cannot be used to reduce subsidy

**Sewer Utility**

* Materials & Services:
  + Lagoon Site Maintenance: $24,000 (tires and potential electrical/other pivot maintenance; likely needed)
  + Repairs & Maintenance: $25,000 (aligned with history)
  + Chlorine: $6,000 (unchanged; below prior budget)
  + Other Professional Services: $100,000 for sanitary/collection system survey (camera/smoke/INI); may be required/critical to qualify for future funding; loan forgiveness anticipated
* Transfers/Reserves:
  + Sewer is financially healthier than Water; reduced transfers to reserves as targets met
  + Contingency: ~$87,000
* Revenues:
  + Beginning Cash: ~$232,000
  + Sewer Service: In line with prior collections
  + Forgivable Loan: $100,000 for sanitary survey (confirm terms/requirements)

**Scheduling and Next Steps**

* Next Budget Work Session
  + Date: May 21, 6:00 PM
  + Location: Public Works Building
  + Purpose: Continue line-by-line review; finalize adjustments
* June Council Meeting and Budget Hearing
  + Date: June 17, 6:00 PM
  + Purpose: Budget hearing and council approval
  + Communications: Staff to notify radio (KJDY) and newspaper; publish budget hearing LB-1 as required
* Action Items (Budget/Operations)
  + Members to review budget packet; send questions to Rob before May 21.
  + Confirm Marvin’s computer procurement under Fire budget.
  + Validate museum “computer/software” $47 charge (Treasurer to check statement).
  + Streets: Consider cost-reduction strategies and define General Fund transfer policy.
  + City Hall Remodel: Obtain quotes; confirm ADA grant.
  + Water:
    - Set M&S: Fuel $50,000; Chlorine $25,000; generator maintenance included.
    - Pursue power line easement resolution; monitor OTEC schedule; track Business Oregon extension.
    - Coordinate meter project bids/contract compliance; plan phased orders.
    - Discuss prioritization of $150,000 water line project vs. critical treatment plant electronics contingency.
    - Prepare water/sewer rate study materials (request sewer rate study presentation/document at next council).
  + Sewer: Confirm sanitary survey requirement/DEQ guidance; proceed to maintain eligibility for funding.

**Adjourn Budget Meeting: MSP: To adjourn the budget meeting. Councilor Coburn/Budget Committee member Wanda Patterson. Unanimous vote.**

**4th of July Planning**

* Fireworks
  + Site: Meadow behind City facilities (pending Fire/Marvin site visit approval)
  + Pyro vendor: Will supply product; local team to be trained/licensed; attendance at vendor shows required for training
  + Budget: Estimate $14,000–$15,000; billing timing to be confirmed (may span fiscal years)
* Purchases Approved
  + Four flags (styles to be selected)
  + One long banner (potential installation: Texaco building rooftop)
  + $400 for handmade marbles (approx. 10 marbles) for marble hunt
  + Banners coordination: Mike to order via vendor contact; cardholder to be arranged
* Ribbons/Trophies
  + Explore custom ribbons with year/anniversary; finalize at next council meeting (lead time acceptable)
* Grand Marshal Nominees (to decide at next meeting)
  + Primary: Dolores Young (Carrie Young Memorial)
  + Alternates: Kristi Whitaker (family connection), Sandy Murray, Carla Wright, Susie (surname not stated)
* Budget Availability
  + Current-year Holiday line has ~ $10,000 remaining through June; next-year budget includes $20,000

**Flags: MSP: To purchase four, 4th of July flags. Councilor McClung/Davis. Unanimous.**

**Marble Hunt: MSP: To spend $400 on marbles for the 4th of July marble hunting. Councilor Clark/Bernard. Unanimous vote.**

**Banners: MSP: To purchase long, 4th of July banners. Councilor Coburn/Bernard.**

**Open Questions / Follow-Ups**

* Confirm Fire command vehicle acquisition path and final budget need.
* Clarify City Hall remodel scope and cost estimating.
* Determine final Parks maintenance needs (bathroom painting; swags across roadway).
* Verify lagoon pivot maintenance scope/costs (tires, electrical).
* Streets: Evaluate streetlight cost alternatives; confirm street sweeping attachment readiness and usage plan.
* Water: Legal strategy and timeline on easement; contingency for treatment plant electronics if grant not awarded.
* Museum: Advertising value and mix; confirm small software/computer charge.
* Communications: Ensure all meeting date changes advertised (radio/newspaper).

**Adjourn: MSP: To adjourn the council meeting at 8:00 p.m. Unanimous vote.**

Approved by the City Council on this 22nd day of June 2026 and signed by the Mayor.

Colby Bradford, Mayor

Attested:

Shonalie Oakes, City Recorder