Budget Message_21-23Fiscal Year 2021‐23
City Manager's Budget Message
Mayor Buck, Chair, Members of the Budget Committee, and Citizens of Lake Oswego:
I am pleased to submit the 2021‐2023 Proposed Budget for Budget Committee consideration.
This proposed budget positions the City well to deliver effective and efficient municipal services
that create an outstanding quality of life for all of the people of Lake Oswego. Budget Committee
review and deliberation is critical to ensuring that the City is a careful steward on the resources
it manages on behalf of the public.
As we have done in the past, we treat the operating departments in the General Fund as
enterprises, which is described in greater detail in the “Budget Process and Philosophy” chapter.
This biennium, departments received an increase of 2.15% in the first year and 4.35% in the
second year of the biennium over their operating revenues, with the exception of the Planning
Department (0%) and the Parks and Recreation Department (5.75/9.59%). The increase for Parks
and Recreation is to prepare for the recreation and aquatic center opening and golf course
reopening.
Five major themes stand out in this proposed budget:
The City is financially well positioned to begin the next biennium. There are several
factors that contribute to the City’s strong financial position. The first is our reserves,
built over time through adherence to policy. The second is the stability of the City’s
revenue streams, particularly our property tax revenues in the general fund. The third is
careful management of the costs of personnel. In this biennium, we benefit in particular
from a significant reduction in health care premiums. Finally, the impacts of COVID‐19
costs on the City’s operations were mitigated by funds from the CARES Act.
Funding is allocated to the City Council’s goals. In particular, this budget includes:
o $2 million in funding for top priority pathways without reducing funds for streets.
This allocation is made up of one‐time savings from the FY 2019‐2021 biennium;
o A new position approved by Council in January 2021 to implement the
recommendations of the Diversity, Equity, and Inclusion Task Force;
o A new position in planning to address the Council’s goals for economic
development, affordable housing, and a community‐specific implementation of
HB 2001;
o A new position as a Behavioral Health Specialist in the Police Department to move
towards the goal of 21st century public safety departments.
• Departments have budgeted to address some the City's growing workload. Some of this
workload increase responds to mandates or requirements, some is caused by the
community's population growth, and some is due to new or expanded City operations.
For example:
o A new position is included to address compliance with the Americans with
Disabilities Act.
o A new Park Ranger position is added to address increased demand, the addition
of two new parks, and the need for 7 day a week coverage.
o A Maintenance Technician position at the Water Treatment Plant was approved
by the Council in 2019
o An Adult Resource Officer position was approved by Council in 2019.
• Not all workload increases are addressed. As many of you know, the Lake Oswego Police
Department has operated with the same minimum staffing levels for at least 30 years,
even though the Community's population has grown by about 10,000 people since 1990.
The Budget Committee should deliberate on the Police Chiefs recommendation to add
four new police officers, which will increase the department's budget by approximately
$700,000 per year and will require an additional one-time transfer of approximately
$210,000 to meet the City's reserve policy.
• The Proposed Budget includes funding for significant capital projects. In the next
biennium, the highest profile project will be the Recreation and Aquatics Center, and it
also includes other projects funded by the 2019 Parks bond. The proposed budget also
contemplates the next steps in replacing the Tryon Creek Wastewater Treatment Plant,
completion of the Lake Oswego Redevelopment Agency projects (City Hall, Boones Ferry
Road Phase 1, and the North Anchor Redevelopment), and the final major year of
pavement replacement projects.
The proposed budget does not include the anticipated allocation of American Rescue Plan Act
funds. The guidance and timing for allocation of these funds was not available in time for
inclusion, and we anticipate adopting a Supplemental Budget in accordance with Oregon Law
In conclusion,the City is well positioned to address the needs of Lake Oswego, to implement the
Council's goals, and to continue the long tradition of thoughtful financial resources of the
Community's rate, tax, and fee dollars. I look forward to your deliberation.
Sincerel
Martha ennett, City Manager