City of Carlton Budget

The decision to finance the new Civic Center was the result of extensive analysis, careful planning, and thorough public consideration by the City Council. After evaluating multiple financing options and securing more than $1 million in savings, the Council approved the financing structure through Resolutions 2022-331 and 2022-332.

The Civic Center is financed through a secure, long-term funding strategy specifically designed to protect public ownership of the facility while providing financial stability for the community. The financing was intentionally structured with a 20-year amortization schedule, and the Year Nine payment was established from the outset as a strategic refinancing milestone, not an unexpected obligation.

Based on current projections, the remaining balance at Year Nine is expected to be approximately $6 million. By that time, the City anticipates being in a strong financial position, supported by significant equity in the property, a demonstrated history of timely payments, and the continued value of this important community asset. This position is expected to provide the City with multiple favorable options, including refinancing through another lender or negotiating revised terms with the current lender, both of which are standard and widely utilized practices in commercial real estate financing.

The City Council's decision reflects a proactive and fiscally responsible approach to investing in critical public infrastructure while maximizing long-term value for taxpayers. The City remains committed to transparency, sound financial stewardship, and careful planning to ensure the Civic Center continues to serve the community for generations to come.

What It Must Include (by Oregon law)

• A short explanation of the financial policies behind the proposed budget
• A look at the key features of the budget tied to those policies
• A comparison of what's changed from last year's budget
• A note on any major shifts in financial policy

Who Delivers It, and When

• It is always put in writing, so it becomes an official part of the Budget Committee's records
• It is presented at the first Budget Committee meeting of the year
• It is delivered by one of the following:
  • The Budget Officer
  • The City Manager
  • The Budget Committee Chair

In Short

The budget message is the town's way of saying: "Here is our spending plan, here is why we made these choices, and here is what is different from last year."

This process keeps town finances transparent, so residents and the Budget Committee have the information they need to understand and ask questions about the budget before it moves forward.

Operating budget in Oregon

An operating budget is a municipality’s financial plan for the ongoing costs of providing services during a fiscal year. It estimates revenues and authorizes expenditures for day-to-day operations.

Typical operating expenses include:

• Employee wages and benefits
• Utilities, supplies, and routine maintenance
• Contracts and professional services
• Ongoing costs for services such as police, fire, parks, and administration

An operating budget is distinct from a capital budget, which generally covers major, long-lived assets or improvements—such as buildings, roads, and large equipment.

In Oregon, a municipality prepares and adopts its budget under the state’s local budget law, ORS chapter 294. The budget is organized into funds and appropriations; an appropriation is the legal authority to spend up to an approved amount for a specified purpose. The exact contents and amounts vary by municipality and fiscal year.

• Individual departments draft their own budget sections
  • The City Manager and Assistant City Manager review each department's proposal for:
    • Feasibility-Does the request align with projected revenues and impact the fund balance reserves
    • Available revenue sources to support the request
    • The reviewed budget is submitted to the Budget Committee to hear the budget message, provide an open forum for public comment to move forward with their approval to the City Council.
    • Once approved, it goes to the City Council for final adoption before June 30th
    • Once adopted by City Council it needs to be certified by Yamhill County by July 15th, so the city has the legal authority to receive property tax revenue