The Lebanon City Council adopted a $94.7 budget for the 2026-27 fiscal year during its regular meeting on Tuesday, June 10.
Finance Director Brandon Neish pointed out the number is higher this next year than the current fiscal year primarily because of required wastewater treatment plant upgrades “and other cost increases.”
This budget includes $30 million in capital construction funds, he said.
The council also adopted a resolution levying taxes at the permanent tax rate of $5.1364 per $1,000 assessed value and a $1,917,122 voter approved bond.
“As a reminder to the council, next year is the last payment for the General Obligation Bond that built the justice center and (the library),” he said.
As the Lebanon Urban Renewal Agency, the council board adopted an $8.6 million budget for the 2026-2027 fiscal year after conducting budget committee meetings and public hearings.
Levy flyer coming
During its meeting, the council also approved an informational flyer about a proposed municipal jail operations levy which is anticipated to appear on the November 2026 ballot.
The flyer provides information on the history of the city’s municipal jail, which provides 12 beds for misdemeanor offenses such as theft, assault, trespass, disorderly conduct and certain traffic-related crimes.
The jail was closed in 2023 due to staffing limitations and the inability to meet Oregon statutory and insurance requirements.
After some research, the city determined it would cost nearly $8.7 million to operate the jail over the next five years. The proposed five-year levy would be for $1.06 per $1,000 assessed value (approx. $297 a year for a home assessed at $242,000).
The flyer reminds the public that a current bond paying for the construction of both the Justice Center (and jail) and the library will be paid off this year, with those taxes falling off next year’s tax roll.
In other business:
- During a work session prior to the regular meeting, Neish talked about the possibility of updating the city’s data and software management systems into one integrated system. After some research, the city settled on requesting a move to OpenGov at $1.78 million for seven years, plus implementation costs. Despite the price tag, the city and council believe the more organized system would be more efficient and cost-effective.
- The council approved a motion within its bulk Consent Calendar to designate the Lebanon Museum Foundation as primary coordinator and central clearinghouse for the city’s 2028 Project 150 sesquicentennial celebration efforts. Councilor Dominic Conti will be the council representative to the Project 150 Committee.
- Resident Melody Wallace brought a complaint to the council about owners bringing their big dogs into the small-dog portion of Gillott Dog Park. She said this is causing small dog owners to leave. City Manager Ron Whitlatch said the city is in the process of putting up a sign indicating a 25-pound limit for the small-dog area.
- Other resident comments included questioning ordinances about putting in a container and landlords being responsible for former tenant bills with the city.
- The council adopted an annual resolution certifying the city provides services that make it eligible to receive State Shared Revenue. The city’s 2027 FY budget expects approximately $330,589 as non-dedicated revenue in the General Fund from a variety of sources – such as liquor taxes, marijuana taxes and cigarette taxes.
- The council adopted an annual resolution certifying it provides services eligible to receive Marijuana Shared Revenue and that the City elects to receive distributions from the State of Oregon for shared revenues and the city’s 3% tax on marijuana sales. Neish estimated the city receives approximately $150,000 a year.
- The council awarded a $2,836,147 project to NVG Construction for full street and utility reconstruction on Grant Street (between 5th and Park streets) and Sherman Street (between Second and Main streets). The projects are expected to be completed by next year.
- City Manager Ron Whitlatch asked council to consider whether it would like to use $514,000 from the Santiam Travel Station sale as a match toward the estimated $1.6 million library expansion project, which could encourage approval of a Community Development Block Grant. Council President Michelle Steinhebel noted the council used to meet at the travel station but now meets at the library, so it seems wise to use the sale funds for the benefit of the library, which has lost some usable space. Councilor David McClain pointed out another option, that if the council obtained a bigger space for City Hall, then the council could move out of the library. The question will be readdressed at the council’s next meeting.