Yachats’ proposed 2025-26 budget rising 14 percent as multiple long-planned city projects get under way

By GARRET JAROS/Lincoln Chronicle

YACHATS – If the city of Yachats’ proposed 2025-26 budget were a person they would be wearing a hard hat and boots and working from dawn to dusk on a laundry list of capital improvement projects.

The nearly $8.86 million spending proposal reflects the city’s movement on a litany of long-term plans and is $1.1 million more than the current budget of $7.75 million — an increase of 14.4 percent, according to the budget document.

“Capital projects are taking a large priority in our overall city budget for the year,” city manager Bobbi Price said after introducing the spending plan to the 10-member budget committee last week. “A lot of long-awaited projects are really hitting. Projects that have been talked about and thought about and launching for years – where we’ve done the planning, engineering and contracting and we are finally here.”

The main projects are the new $1.5 million library and the $370,000 rehabilitation of the Little Log Church Museum, which has been closed the past three years because of safety concerns. The bulk of the funding for both will come out of this year’s budget, Price said.

The proposed capital improvement budget totals $4.66 million. Last year it was $3.73 million.

In addition to the library and museum, capital improvements will cover major paving and street repairs; water, wastewater and storm drain projects; implementation of the greater Commons master plan which is currently under review; and the Yachats River estuary boardwalk.

A substantial portion of the capital project expenditures will be funded by carryover reserves from prior years, according the city’s budget document. Tourism-facing projects are not funded by local taxpayers, but by the visitor amenities fund derived from lodging taxes.

Projects at a glance

• The overall projected cost of the boardwalk, which will have a scenic overlook and run along a portion of Ocean View Drive between U.S. Highway 101 and Beach Street, is expected to cost a little over $915,000. Most of that is expected to be paid for by visitor amenity money, grants and donations.
• “Roughly” $200,000 is allocated for operations of the Little Log Church Museum to ensure it “launches smoothly.” The overall total cost this year will be about $285,000, which combined with $150,000 last year comes in at $435,000. Funding is provided from visitor amenities and the general fund along with contributions from the Friends of the Little Log Church Museum.
• Approximately $581,000 in city money is budgeted for the new Yachats library. It will be funded through various grants, endowments, urban renewal district funds and the city’s capital improvement budget
• The budget allocates just over $280,000 for the Commons as the city continues to set aside funds for the ongoing management, maintenance and care of the building. General funds and transient lodging tax supports the Commons.

“All of our operating expenses and general budget is right on track and looking good,” Price said. “And we are really investing in our city assets this year. And putting a large amount of our overall city budget into the investment of our city streets and assets.”

Revenue at a glance

The city has seven revenue streams including:

• Property taxes estimated to be just $48,815 for the 2025-26 fiscal year;
• Franchise fees of $121,611 for services like electricity, cable, telephone and disposal that private companies pay to use public property for their services;
• Transient lodging taxes are estimated bring in $1.35 million to the city’s general fund;
• Income from state taxes; utility charges; interest from reserve funds at 4.2 percent; and licensing fees from businesses, vacation rentals, permits and filing fees that total $46,444.

The total expected income excluding a beginning fund balance for all funds is $6.13 million, representing a 9.8 percent increase from last year’s budget of $5.58 million.

Expenditures at a glance

Employee costs accounts for a significant portion — $1.72 million — of the budget and represents an increase of 11.9 percent over the current fiscal year’s $1.54 million. The increase is attributed to higher Public Employees Retirement System rates, cost-of-living wage increases, union step increments, rising healthcare costs and a new part-time children’s librarian.

A discussion arose at the budget committee’s first four-hour meeting last week whether city hall operations requires eight staff members. Rick Sant, a budget committee member and former interim city manager, and Price assured the committee they are needed. The sentiment was summed up in the budget document prepared and written by Price.

“While we actively promote robust citizen engagement and outreach, it also brings forth new ideas, energy and heightened expectations for our responsiveness and service delivery,” she wrote. “We aspire to meet these elevated expectations with our city staff.”

Materials and services account for $1.85 million in expenses and reflects a continuation of current service levels; and capital improvements are budgeted for $4.66 million.

In summary

The proposed 2025-26 budgeted expenditures total $8.86 million, a 14.4 percent increase over the current $7.75 million budget. The capital improvement projects will use a portion of the beginning balances in several funds to augment the expected revenue of $6.13 million.

The 10-person budget committee includes the five-member city council and an equal number of private citizens, most of whom serve on the city’s finance committee. A second budget meeting is scheduled from 2:30-7:30 p.m. Tuesday, May 27 in the Commons civic meeting room. The public is invited to attend in person or online.

Although budget numbers will not be finished until after the next budget meeting and approval by the city council at its next regular meeting June 18, the 65-page proposed budget is posted on the city’s website.

“We are at a very comfortable level,” Price said of the city’s financial situation. “While we are investing into our reserves, we still have a healthy balance to ensure that we are responsibly saving for any kind of unknown circumstances.”

• Garret Jaros covers the communities of Yachats, Waldport, south Lincoln County and natural resources issues for the Lincoln Chronicle, formerly YachatsNews, and can be reached at GJaros@YachatsNews.com