2025-176-Minutes for Meeting May 12,2025 Recorded 6/17/2025\ T E S CMG
2� BOARD OF Recorded in Deschutes County OJ2025-176
Steve Dennison, County Clerk
411 COMMISSIONERS Commissioners' Journal 06/17/2025 8:36.25 AM
1300 NW Wall Street, Bend, Oregon
(541) 388-6570
F. C
r' 202 % 176
DESCHUTES COUNTY BUDGET COMMITTEE MEETING
The 2025 Budget Hearings for the week of May 12-14, 2025 were held in the Barnes Sawyer
room at 1300 NW Wail Street, Bend, broadcast live stream on YouTube and through the
virtual meeting platform Zoom. Audio and video recordings of the budget hearings are
accessed at www.deschutes.org/meetings
Present were Budget Committee public members Jim Fister (Chair), Krisanna Clark -Endicott
and Judy Trego, and Commissioners Tony DeBone, Patti Adair and Phil Chang. Also present
were County Administrator and Budget Officer Nick Lelack, Deputy County Administrators
Whitney Hale and Erik Kropp, Chief Financial Officer Robert Tintle, Budget and Financial
Planning Manager Cam Sparks, Senior Budget and Financial Planning Analyst Dan Kieffer,
Management Analyst Laura Skundrick, and BOCC Administrative Assistant Angie Powers.
Reconvene the Deschutes County Budget Meeting: Chair Fister called the meeting to
order at 8:31 a.m.
Review Agenda, changes and follow-up items: None
Public Comment: None
PUBLIC SAFETY (CONTINUED):
Community justice: Funds 030 355 (page 81, 86/62, 257):
In attendance were Deevy Holcomb, Director; Trevor Stephens, Business
Manager; and Tanner Wark, Deputy Director Adult Division. Holcomb provided
an overview of the Community Justice department, which consists of two
DESCHUTES COUNTY BUDGET HEARING May 13, 2025 Page 1 of 17
divisions: Adult Parole and Probation and juvenile Community Justice. Holcomb
said the department will show resilience and innovation in times of uncertainty.
Holcomb summarized the Juvenile justice division's accomplishments, in the
areas of restitution, community service, risk reduction and recidivism, noting
that the department has had a positive impact on youth, victims and their
communities. Responding to Commissioner Adair, the total number of youth
served last year is estimated at +/- 200 individuals.
Holcomb spoke about the division's current challenges and futures initiatives.
Some challenges include maintaining effective operations with fewer resources,
aging facilities, and remaining responsive in the face of unknown juvenile justice
trends. Future initiatives include substance use disorder treatment, gender
responsive services, meaningful accountability and community service
opportunities for youth.
Stephens summarized fiscal issues in the juvenile justice department. Transfers -
in account for 78% of the division's resources, the bulk of which are from the
General Fund (GF). In FY26, they are requesting a 3.26% increase in GF transfers,
staying below the limited growth strategy of 3.3%. The five-year forecast
illustrates that revenues won't meet expenses beginning in FY27. Trevor
Stephens is working towards gaining Medicaid reimbursement certification,
while continuing to actively pursue other funding sources including grants.
Juvenile justice anticipates an increase in overtime due to staffing reductions.
Commissioner Chang spoke about the threshold at which it makes sense to hire
an FTE to avoid paying out additional overtime. Holcomb noted this is currently
being examined, and as of the end of April Juvenile Justice had paid out $92,000
in overtime and may reach $150,000 by the end of FY25.
Responding to Commissioner DeBone, Holcomb reported that an assessment of
detention facility operations determined that a minimum of 16 FTE are required
for adequate operations. Historically, the number had been around 19 FTE. If
this staffing reduction doesn't work effectively, it may be necessary to evaluate
future needs for the tri-county area.
Discussion ensued regarding whether the detention facility meets current needs.
As the facility was constructed of steel and concrete as a detention center,
substantial investments would be required to repurpose the facility.
Commissioner Adair highlighted the design elements of Rimrock Trails' youth
facility in Prineville. Erik Kropp reported that he and Holcomb plan to meet with
Commissioners individually to develop a stakeholder group for brainstorming
ideas for the juvenile detention facility's future.
May 13, 2025 BUDGET HEARING Page 2 of 17
Responding to Chair Fister, Stephens noted the increase in contract services was
tied directly to grant funds for working with youth in the facility and those on
supervision.
Tanner Wark spoke about the Adult Parole and Probation (P&P) division. Adult
P&P has a positive impact on the community by reducing prison usage and
decreasing or neutralizing recidivism. There has been a concerted push to
provide timely risk and needs assessments, with a current rate of 68% and a
target rate of 75%. Much to the division's benefit, opioid settlement funds have
enabled them to staff a Behavioral Health Specialist at Adult P&P.
Wark spoke about current challenges. Commissioner DeBone shared that he
recently advocated for Community Justice formula funding during a recent Ways
and Means roadshow at Warm Springs. Wark said a continuing challenge is
securing housing and resources for justice involved individuals.
Gender responsive services are one of Adult P&P's future initiatives, as studies
show improved outcomes for justice involved women. Commissioner Adair
applauded the work being done by M Perfectly, an organization helping women
to regain their self-esteem. Another exciting initiative are plans to enter into an
agreement with First Watch, a wellness program tailored for law enforcement
staff.
Stephens spoke about short and long-term fiscal issues for Adult P&P. Holcomb
noted that there will be more clarity when Oregon's revenue forecast is released
on May 14, as 72% of the division's revenue comes from the state.
Responding to Chair Fister, Wark said that many funding streams have dried up.
The administrative burden on collecting fees from clients in the past was large,
and Holcomb noted this is no longer allowed by state law. As previously stated,
they are hopeful to gain Medicaid reimbursement certification and continue to
actively pursue outside grant funding to supplement their budget.
Stephens echoed Wark's statements regarding the difficulty in securing housing
for justice involved individuals, reporting that $142,000 in grant funding has
provided 227 person months of housing. Holcomb noted that some of their
clients have utilized Mountain View Community Development's Safe Parking
program: Responding to Krisanna Clark -Endicott, Stephens will later provide data
on how many adults on supervision successfully transitioned into more stable
housing. Importantly, Medicaid funds can be used for Health -Related Social
Needs (HRSN). Commissioner Chang suggested researching whether the
governor's houselessness prevention funding could be used for some
transitional housing for justice involved individuals.
May 13, 2025 BUDGET HEARING Page 3 of 17
Stephens shared the five-year forecast model for Adult P&P which reflects a
structural imbalance after FY26 when expenditures exceed revenue.
Management has been honest with staff in that they will not be hiring new staff
but emphasized that caseloads must be workable in size to prevent staff
burnout. Chair Fister applauded the division for controlling costs.
Wark spoke about efficiencies in data collection. Krisanna Clark -Endicott
discussed the importance of seeking funding based on each individual clients'
personal circumstances, including those who are houseless. Wark emphasized
that face-to-face contact is essential, so electronic monitoring alone is not the
solution, but it is possible that Al could be utilized to the PO's benefit for data
entry and reporting.
Commissioner DeBone stated the Community justice department's mid -year
budget presentation will be an important update for the committee to consider.
justice Court: Fund 220 (page 95/120)
In attendance were Charles Fadeley, justice of the Peace and Kristal Cozine,
Court Administrator. Kristal Cozine summarized the Court's mission and
organizational chart, noting that the travelling court holds court in Sisters, La
Pine and Redmond. The Court Administrator positions have been revamped
noting that over the past year, challenges were experienced with multiple staff
members on leave at the same time. She applauded the court administrators for
being skillful at de-escalation and diffusion in the face of difficult situations with
angry clients, noting the department's recent participation in a multi -agency
active threat training.
To meet requirements in FY26, $400,521 from Transient Room Tax (TRT) will be
required. Cozine spoke about short and long-term fiscal issues. They plan to
submit a mid -year budget request to increase FTE to three full-time Court
Services Assistant I positions and the promotion their lead senior clerk to a
newly created Court Services Assistant II position. Their Majic software is DOS -
based and will soon require replacement. She noted the increasing costs of
health insurance and PERS causing additional strain on the budget.
Cozine discussed current challenges and future initiatives. They continue to
balance fair enforcement with the financial realities of defendants. judge Fadeley
spoke about workload impacts due to legislative amendments and a continually
understaffed DMV. They are preparing for an increased workload due to
Redmond's automated traffic enforcement initiative, which utilizes red light and
radar speed cameras. Citation volume is anticipated to increase from 6,000 to
20,000 per year.
judge Fadeley said that the first $65 from each traffic infraction fine goes to the
state, and anything beyond that is split between the city and the county. judge
May 13, 2025 BUDGET HEARING Page 4 of 17
Fadeley enjoys plans to remain at 0,60 FTE, so an additional judge will be
required to meet the increased caseload. Increased fine revenue will pay for the
additional pro tern judge.
As presented, the department's budget is status quo and does not include any
new FTE nor the increased workload from the Redmond photo radar project.
BREAK: At 10:06 a.m., a brief recess was taken, and the meeting was reconvened at 10:11 a.m.
District Attorney/Victims' Assistance: Funds 001-11, 212 (page 87, 93/18, 114)
In attendance were Steve Gunnels, District Attorney; Jessica Chandler, Business
Manager; Stacy Neil, Supervising Deputy District Attorney; and Andrew Doyle,
Lead Deputy District Attorney. DA Gunnels read the department's mission
statement and outlined their organizational chart, highlighting that authority
goes through the Office of the District Attorney, not the DA himself.
The DA's Office is funded 97% from the GF. Other funding sources include
federal and state government payments, and Jessica Chandler summarized
these non-GF funding sources. The impacts of the limited growth strategy were
summarized, with DA Gunnels noting that Chandler has been masterful at
cutting expenses without sacrificing service. Commissioner DeBone reiterated
that a common theme amongst departments is that the first year of limiting
growth is achievable but the second and subsequent years are more difficult.
DA Gunnels emphasized that it becomes difficult to retain quality staff when
more and more is asked of them. The subject manner of their work takes its toll
and cumulatively more of this work wears people out and it is very difficult to
replace a good prosecutor.
The Victim Assistance Program Supervisor recently resigned, and the
department determined it is necessary to have more Victim Advocates. They are
considering leaving the supervisor position vacant with the Business Manager
and Office Manager stepping in to supervise the program.
DA Gunnels summarized some key accomplishments. A four -person fatality car
crash prosecution resulted in a 24-year sentence. Significant prison sentences
were handed down in many complex sex abuse cases, along with the successful
prosecution of drug dealers. 64 youth graduated from the Emerging Adults
program. The Veterans Intervention Strategy has reduced recidivism to S%.
Additionally, an organized retail theft partnership with local law enforcement has
been established.
DA Gunnels discussed the office's short-term and long-term fiscal issues. With an
increased number of serious crimes comes increased costs. Reviewing digital
May 13, 2025 BUDGET HEARING Page 5 of 17
evidence is time -intensive, with over 6,000 hours of body -worn camera footage
reviewed last year.
DA Gunnels spoke about key challenges, including but not limited to, rising case
complexity and staffing shortfalls. He is cautious about not overworking current
staff.
Future initiatives include a Victim Portal, which will provide victims with timely
information on case status. A slide illustrated DUII caseloads between 2020 and
2024. 1,119 DUlls were filed in 2024. These cases take a long time to resolve,
with an average of 259 days to dispose. Another slide illustrated murders by
year, from 2015 to 2024. An upward trend beginning in 2020 represents a major
challenge. DA Gunnels said there is a direct correlation between murder, drug
and/or alcohol use and mental illness. The next slide illustrated the high
prosecutor workload, DA Gunnels stating that a high caseload creates a pressure
cooker. A murder case takes an average of 815 days to resolve.
Stacy Neil, Supervising Deputy District Attorney, provided a compelling snapshot
of a week in her life as a prosecutor, highlighting countless demands on her
time. Her area of focus is child sex abuse cases. There is a tremendous amount
of work behind the case counts. One case does not equal one case, and it is
difficult to quantify her work. There are massive amounts of evidence to comb
through and keeping up with the demands of this work can be challenging.
There are over 100 cases on the court docket each day.
Additionally, increased pre-trial litigation is becoming the trend. Prosecutors are
on -call evenings and weekends and their work cuts into their personal time. Her
supervision duties suffer as she has little to no time for mentorship and training
junior prosecutors. Additionally, there is reduced time for law enforcement
support and guidance. She is very concerned with burnout and often counsels
those who are overwhelmed about prioritization.
Andrew Doyle, Lead Deputy DA and Federal Prosecutor, provided insight into his
typical workload. Criminal law is no longer generalist and is now an area for
specialization. Trials are increasing in complexity due to technology and other
factors. If the Office is not adequately funded, they are unable to sentence
individuals, and this creates a public safety concern. He is on call 24/7/365
without overtime pay, noting there is a human cost associated with this kind of
work. Counsel Doyle takes pride in community outreach, but this can only
happen if staffing capacity allows.
DA Gunnels spoke about the Victim Assistance Program (VAP) which provides
services for victims of crime to navigate the system, as required under Oregon
Statute. The number of victims served has risen dramatically over the past 20
years. From 2020 to 2024, 14,160 total victims were served by the VAP in
May 13, 2025 BUDGET HEARING Page 6 of 17
Deschutes County. Chandler detailed the program's budget and spoke about
how they are managing within the limited growth strategy.
Responding to Judy Trego, DA Gunnels said there is a disproportionate number
of homicide victims who are homeless, and many offenders are in and out of
homelessness. Homicides are directly correlated with drug and/or alcohol abuse
and mental illness. DA Gunnels outlined the process for civil commitment.
Commissioner DeBone looks forward to the courthouse expansion project
completion, and the department's mid -year budget update.
DIRECT SERVICES:
1. Solid Waste: Funds 610-614 (page 141, 144, 145/286, 294, 296, 297, 299)
In attendance were Tim Brownell, Director and Sue Monette, Management
Analyst. Chair Fister thanked Tim Brownell for the department's detailed budget
spreadsheet through FY38. Brownell thanked the Budget and Finance team for
their support. He read the department's mission statement and provided an
overview of the five separate funds that fall under the department, highlighting
Operating Fund 610. The organizational chart has 44 FTE.
Some accomplishments include moving the hazardous waste disposal program
in house. This program consists of 3 FTE and is now available to customers two
days per week, 52 weeks a year. The department has successfully diverted 28%
of the solid waste stream (target is 45%). A solar feasibility study for Knott
Landfill post -closure was completed and new franchise agreements for the
management of haulers have been developed.
85% of revenue is from charges for services. The budget assumes there is no
growth in waste tonnage and assumes a tip fee increase from $80/ton to
$90/ton. This will result in a 3% increase in costs for residential curbside trash
collection. Responding to Commissioner DeBone, Deschutes County has kept tip
fees low, as the statewide range is $73 (Pendleton) to $153 (Portland) per ton.
Brownell summarized budget details. Solid Waste proposes a 17% personnel
budget increase which includes 4 new FTE to replace contracted services and 3
FTE for the hazardous waste program team. Additionally, a 5% M&S budget
increase is proposed due in part to a large increase in wood debris waste from
fire fuels reduction.
The department's five-year forecast is favorable. Revenues keep pace with
expenses.
Short and long-term fiscal issues were summarized. In the short term, they will
need to construct a new flare at Knott Landfill that meets the state's new
May 13, 2025 BUDGET HEARING Page 7 of 17
requirements. Knott Landfill is expected to close in spring or summer 2031, and
$50 to $90 million will be required for a, new landfill and transfer station
upgrades.
Current challenges and future initiatives were discussed. Noting that nearly 40%
of the waste stream is estimated to come from the construction industry, they
are working to develop public and private partnerships to meet diversion goals.
The flare takes methane gas created by the landfill, cleans it and converts it. By
contributing to the natural gas pipeline, revenue generation of $500,000 is
anticipated.
Important work continues towards siting of the new landfill and the post -closure
plan for Knott Landfill. Responding to Commissioner Chang, Brownell said the
waste characterization study confirmed the previous Solid Waste Management
Plan, which shows that a large volume of waste is from the construction
industry. OSU-Cascades is located at the old pumice mine and demolition landfill
site, and although they have not yet moved any materials off -site, Solid Waste
has a potential $1.5 million liability in the case that hazardous materials
remediation should be required. Responding to Commissioner Chang, tires
found on the site are currently grinded and blended into the soil substrate to aid
drainage.
Brownell summarized the five-year forecast for Fund 611, noting that one-third
of Knott Landfill's site has already been closed.
Fund 612 is the landfill post -closure fund. Responding to Commissioner DeBone,
Brownell said that post -closure, Knott will be a restricted site due to active gas
wells and interpretive signage is planned. After closure, 60 to 80 acres will be
utilized as a transfer station. Bend Park and Rec plans to develop 500 acres
south of the site.
Capital Reserve Fund 613 is for facilities and upgrades. $2.15 million will be
transferred into this fund from Operations Fund 610. Brownell summarized
requirements for FY26 and shared the five-year forecast. In FY27, a significant
investment of $5.5 million will be spent for the development of new cells at
Knott.
Equipment Fund 614 will receive a $1 million transfer from Operations Fund 610,
for purchasing and upgrading heavy equipment.
In FY26 the tip fees will increase from $80/ton to $90/ton. Over the next several
years, it will continue to increase incrementally. Brownell referred to the long-
term forecast which can be found in the supplemental materials section.
May 13, 2025 BUDGET HEARING Page 8 of 17
Responding to Commissioner DeBone, Brownell said they have waived
approximately $10,000/annually in fees for homeless encampment cleanups on
public lands. Additionally, nearly $500,000 in fees have been waived for Fire
Free. Additional waivers are provided for property cleanups related to code
enforcement.
For FY26, there are four new FTE in the proposed budget, including 1 FTE
Customer Service Clerk and 3 FTE Landfill Site Attendants. The 3 new FTE comes
out of contracted services. Historically, Heart of Oregon Corps has provided litter
control, but this will now be handled in-house. The Recycling Modernization Act
is on the horizon, which provides for some funding to the County towards
contamination reduction education work. In the event this funding begins on July
1, Heart of Oregon Corps may be utilized for this work.
A working lunch began at the start of the Natural Resources department presentation. No break
was taken.
2. Natural Resources: Fund 326 (Page 137/2341
Kevin Moriarty, County Forester, provided an overview of the department, which
consists of 3 FTE. Programs and partnerships include Project Wildfire, FireFree,
FireWise USA, Noxious Weed Advisory Committee, Deschutes Collaborative Forest
Project, Oregon Living with Fire, and Deschutes Soil and Water Conservation District.
Moriarty spoke about the department's robust accomplishments under the Buttes
to Basin, the Oregon State Fire Marshal, and FireFree programs. Nearly 30,000 cubic
yards of debris were collected in 2024 for FireFree. Deschutes is the #1 county in
Oregon for FireWise sites, with 73 FireWise communities. Currently, there are 23
active Project Wildfire committee members, and they are working to expand its
reach by holding meetings in different locations across the county.
A map highlighted fuels reduction projects across the county. Other
accomplishments relate to noxious weed outreach and treatment. The noxious
weed program is decentralized (Road and Natural Resources departments), and
they are considering streamlining it for improved compliance and enforcement.
Notably, a 200-foot fuel break surrounding City of Bend property at North Juniper
Ridge has been completed. This will help to protect neighboring communities from
the threat of wildfire.
The Natural Resources staff is almost entirely funded by PILT (Payment In Lieu of
Taxes) and Title III funds. Most of the revenue comes from grants and agreements.
The uncertainty of federal funding is a primary fiscal issue.
May 13, 2025 BUDGET HEARING Page 9 of 17
Commissioner Adair noted that FY25 budgeted for $596,692 in federal grants,
however $0 in federal grants have been received. Sparks and her team will research
this and respond later in the day.
BREAK: At 12:35 p.m., a brief recess was taken, and the meeting was reconvened at 12:41 p.m.
3. Community Development: Funds 295-303 (Page 117, 121, 122, 123/179, 217, 218,
220, 301, 221, 222)
In attendance were Peter Gutowsky, Director and Sherri Pinner, Senior Management
Analyst. Gutowsky acknowledged the resiliency of his department. In 2023, he made
the difficult decision to lay off five employees due in large part to declines in permit
activity and reserve funds. Lobby hours were subsequently reduced but they have
now resumed regular hours.
The Community Development Department consists of 53 FTE among five divisions:
building safety and electrical, code compliance, administration and coordinated
services, onsite wastewater and planning. Gutowsky highlighted some
accomplishments. The Board of Commissioners recently approved RVs as rental
dwellings, with certain requirements. They are simplifying their onsite wastewater
operation and maintenance annual billing. Gutowsky credited Todd Cleveland for
providing technical assistance for the Terrebonne Sanitary District, Tumalo Sewer
District and Central Oregon Intergovernmental Council. He also credited Angie
Havniear for increasing voluntary code compliance.
2 FTE have been added to the building safety division to help increase capacity for
plan review and plumbing/electrical inspections.
Pinner showed a line graph of permit/application volume from FY16 through FY25,
which illustrates permit instability. FY25 experienced an 18.8% increase in land use
applications over FY24. Pinner summarized a proposal for some fee increases for
FY26. Permits for an average 2,600 square feet structure would total approximately
$11,000, an increase of $535. Responding to Commissioner Adair, Gutowsky did
reach out to comparable jurisdictions when determining these increases, while
noting that CDD is targeting certain divisions rather than proposing blanket fee
increases. Pinner spoke about the proposed fee increases.
Many short and long-term fiscal issues were discussed, with unfunded legislative
mandates discussed at length.
Gutowsky discussed challenges and future initiatives. Staff turnover has slowed but
retention remains a challenge as it can take up to two to three years to fully train
staff. An important consideration is managing difficult customer interactions.
Additionally, applications and code compliance cases are increasing in complexity.
May 13, 2025 BUDGET HEARING Page 10 of 17
CDD has four reserve funds which are funded through transfers from/to Operating
Fund 295. The five-year forecast shows the Building Safety Reserve Fund 301
plunging steeply.
Commissioner Chang referenced Portland State University's population growth
forecast for the unincorporated county, which predicts slow growth for the next two
decades followed by a declining population which could translate to decreased
permit volume. Gutowsky remains optimistic that second home development and
remodels will provide for steady permit volume. He cited destination resorts and
noted that our region continues to be the only part of Oregon which continues to
grow.
4. Assessor's Office: Fund 001-02 (page 109/3)
County Assessor, Scot Langton, presented his department's proposed FY26 budget.
He described it as a status quo budget, with little changes from last year. The
department utilizes two FTE for IT applications to maximize their use of technology.
88% of the department's funding is from the GF, with the remainder from state
grants and charges for services. There is current pending legislation for more stable
assessment and taxation funding, which if passed, would increase the state's
contribution from 11 % of the department's revenue to 25%.
The Assessor's Office has been able to maintain a consistent number of FTE despite
the continued growth in our county. Over the last 25 years, the department has
increased only 2.51 FTE despite a growth of 33,200 new properties. Efficiencies
stem from leveraging technology and evaluating business practices. His department
faces a significant number of retirements, and succession planning and retention
are important. Large commercial and industrial property appeals are complex, and
they must be able to adequately defend the tax rates. Staff must stay informed
about voter approved measures to timely and accurately respond to taxpayers.
Langton described the impacts of limited growth on his department and utilized
several strategies to meet the baseline budget with a targeted savings of $234,000.
He is not proposing any additional FTE or dollars for new technologies. As the
department's primary software is increasing 8%, they may need to utilize vacancy
savi ngs.
His department has tabled any current or future technology initiatives, including
Wads, dedicated IT staff, cross -training staff and exploring Al, noting that one way
they have been able to maintain stable FTE over the years is by leveraging the use of
technology.
Langton said he believes the limited growth scenario is wrong sizing his
department's budget. Sparks noted that $234,000 is equivalent to approximately 1.7
FTE.
May 13, 2025 BUDGET HEARING Page 11 of 17
Langton spoke about tax dollar distribution, noting that 7.7% of $42 million in tax
collections go to the GF, with all other taxing districts receiving 92.3%. Commissioner
Chang emphasized that all taxing districts benefit from his department's service but
only the County contributes towards the department's operation.
Sparks said that taxes will increase 4.58% in FY26. It is crucial that Langton can
defend appeals. The cost of doing business includes factors that he has no control
over, such as increases in PERS and health benefits costs. He will do his best to
operate in FY26 within the limited growth strategy but is very concerned about the
following year. Langton spoke about compression, as it relates to local option tax
levies and permanent tax rates.
Lelack celebrated the department's ability to maintain consistent FTE over the past
two decades despite the growth in population. He noted that over the last four
years, the department has averaged 2.39 to 5.62 vacancies annually. Sparks said
that Finance recommended vacancy savings be budgeted to balance the
department's budget, noting that since 2021, the average savings has been
$439,000 annually so roughly half of the full budget savings is currently being
utilized.
5. Office of Coordinated Houselessness: Fund 205 (page 163/111)
Erik Kropp, Deputy County Administrator, provided a brief overview of this budget.
The FY26 budget has no staff, only M&S with much of it going to Central Oregon
Intergovernmental Council (COIC). Legislation didn't specify an end date for the
Coordinated Houseless Response Office. Cities and counties have signed an IGA to
coordinate through June 2027. Not including obligations, the fund has roughly a
$700,000 balance.
6. Road Department and Road Capital Improvement Plan (CIP): Funds 325. 328-
336 465 680 (page 129 133 134 135/226, 248, 249, 250, 252, 274, 380)
In attendance were Chris Doty, Director and Cody Smith, Assistant Director and
County Engineer. Doty said the Road Department contains four divisions:
Operations and Maintenance, Fleet and Equipment, Engineering and Surveying, and
Administration and 61 FTE. Budgeting priorities are in the following order: maintain,
operate, then improve the system. Six funds fall under Operating Fund 325.69% of
the department's funding is from state government payments (State Highway Fund
allocation). Additional revenue is from Payments in Lieu of Taxes (PILT), timber
receipts (reverted back from Secure Rural Schools (SRS) as SRS was not
reauthorized), Fund Exchange revenue, System Development Charges (SDCs),
grants, and partnerships .
Legislatively, in 30 years, it is important to note that this is the fourth time
transportation funding has been on the table. If the Legislature approves funding,
the revenue will not be realized by the Road Department until the 3rd or 4t" quarter.
Federally, PILT has not been reauthorized for FY26 yet.
May 13, 2025 BUDGET HEARING Page 12 of 17
Doty discussed the Pavement Management Program, for which $9.2 million is
budgeted in FY26.
The Building and Equipment Fund 330 Fund has $830,000 budgeted for FY26. Doty
described site and building upgrades and the department's strategy for cycling
through their fleet. The department identified a need for additional supplies and
equipment for emergency response and evacuations.
Doty shared the five-year projection for Fund 325 which assumes a moderate
revenue increase in FY27 associated with a legislative funding proposal.
Cody Smith spoke about Fund 465, the Road Capital Improvement Plan (CIP). This
fund has three primary sources of revenue: Road Fund 325, Transportation SDC
Fund 336, state and federal grants. As stated by Doty, Fund 325 utilizes a trickle -
down philosophy, with maintenance and operations first, and any remainder
towards capital improvements.
Road CIP includes four programs: transportation system, pavement preservation,
traffic safety and bridge construction. For FY26, the CIP project total is $18.9 million
in local transportation infrastructure improvements.
Smith highlighted several notable projects completed in FY25 and outlined notable
projects for FY26, including paving projects and bridge construction program
projects.
The five-year road CIP Plan identifies a total of $74,945,497 in project expenses
identified, noting this figure could look different, based on the state transportation
package passed by the legislature.
BREAK. At 3:01 p.m., a brief recess was taken, and the meeting was reconvened at 3:07 p.m.
7. Fair & Expo Center: Funds 615-619 (page 125 127 128/301 307, 313, 315, 319)
In attendance were Geoff Hinds, Director; Bill Kuhn, Fair Board member; and Steve
Curley, Fair Board Vice President. Hinds provided an overview of the department,
including its organizational chart (13.5 FTE) and mission, noting that the Fair Board
recently discussed plans to update the mission statement. As needed, the
department supplements with on -call and seasonal staff, as needed. There are no
additional FTE proposed for FY26. The department's Operating Fund operates as an
Enterprise Fund.
Hinds spoke about the successful 2024 Fair and Rodeo season, with record
attendance seen on Saturday and the highest recorded revenue from food,
beverage and carnival sales. This achievement was despite hot weather and a
temporary closure on Highway 97 due to fire. Also hosted was the Fairwell Festival,
May 13, 2025 BUDGET HEARING Page 13 of 17
providing an estimated $100,000,000 economic impact. DCFE continues to serve as
a critical evacuation center and staging area for emergency response.
63% of the department's resources come from charges for services. The Operating
Fund 615 five-year forecast illustrates revenue will no longer keep up with expenses
effective FY26, without intervention. The department is actively searching for
revenue -generating opportunities without raising fees for clients and customers.
Utilizing innovative strategies, DCFE will reinvest into the property and right -size the
capital reserves beyond FY28.
Responding to Chair Fister, Kuhn noted the importance of pricing multi -year
contracts appropriately upon signature. Kuhn noted there is limited additional
capacity during peak season. Curley said there has been a learning curve based on
larger events being held in recent years.
Hinds shared the Fund 616 five-year forecast, which illustrates a big dip after FY25.
He noted this fund will be used to shore up Fund 615. The five-year forecast
assumes no changes are made. Hinds is optimistic that through continued
investments into the facilities, the numbers will be more favorable. They do not plan
to dip into capital reserve funds to supplement.
Responding to Commissioner Chang, Tintle said the County's credit rating is based
on the entire County with all funds combined, particularly the General Fund.
Responding to Commissioner Adair, Hinds spoke about 4H exhibitor fees, which
includes a 5% fee to the auction committee. RV park fees include TRT which goes to
the City of Redmond.
Short and long-term fiscal issues were discussed at length, including but not limited
to increased operational costs, repair/replacement of aging infrastructure, and
underfunded reserve funds. Current challenges and future initiatives were covered.
The facility is nearly 25 years old and well, irrigation, roof repairs/replacements and
asphalt repair/replacement are priorities. The center scoreboard in arena is dot
matrix (not LED) and they are getting quotes for a replacement, with a new unit to
be used for marketing.
Chair Fister shared the County is in active negotiations with the Department of State
Lands (DSL) for a land swap which would add 140 acres to the facility. The DCFE
Strategic Master Plan will include future opportunities for this potential land
acquisition.
Curley spoke about access grants to help fund lighting upgrades. Responding to
Chair Fister, they do not have a reserve study.
May 13, 2025 BUDGET HEARING Page 14 of 17
Hinds emphasized that although DCFE is operating at a deficit, the facility has a
tremendous economic impact on the community. To be deficit neutral and revenue
positive will require a reexamination of their revenue strategy model. The Fair and
Expo Center continues to be the premier facility on the west coast.
Related to the DSL land exchange, Commissioner Chang stated he is seeking a
partnership with the Fair Board, with less pressure. Commissioner Adair thanked
Hinds and the Fair Board for their hard work. Hinds said that despite budget
challenges, they are looking into the future with foresight and planning to prevent
budget deficits.
Fund 619 is the capital reserve for the RV Park, and the RV Park is still cash positive.
Although no reserve study has yet been completed, the RV Park capital reserve is
fully funded at $1.8 million.
Chair Fister described the facility as a gem, noting he is well -travelled and other
facilities don't compare. He encouraged the department to continue having high
standards as an industry leader.
8. Clerk's Office: Fund 001-05, 001-06, 218 (page 113, 116/9, 14, 118)
County Clerk, Steve Dennison, read his department's mission statement and
provided an overview of their organizational chart with 11 FTE. He noted that twenty
years ago, the department had 10.5 FTE. They also utilize on -call staff during
election peak seasons.
Dennison provided an overview of the department's functions. Accomplishments
include archived document destruction per OAR 166.150, administering the 2024
presidential election with a record number of ballots cast, and succession planning.
FY25 saw the retirement of two long-term employees with over 50 years of collective
experience. 49% of resources are from charges for services, and 48% from the GF.
Revenue is from passport applications, marriage licenses, recording real property
records, and some election cost reimbursements. Dennison acknowledged that
elections are a burden on the GF.
He described the FY26 budget as status quo. increases in software maintenance and
mailings. This year the department will manage but will need additional funding to
conduct another countywide election in FY27.
Recording fees are directly related to the number of pages recorded, which are
mostly mortgage records. If mortgage rates drop, refinanced mortgages will result
in more pages recorded. Challenges include space needs, state legislation related to
elections, and ongoing succession planning. Over the last 8 years, the department's
staff has turned over 100%.
May 13, 2025 BUDGET HEARING Page 15 of 17
They're considering subscription -based access to real property records online which
would require a fee -based subscription to access the images. This may allow for
some protection from title fraud. The department continues its efforts towards
voter education and outreach.
Discussion ensued regarding space needs and downtown campus master planning.
Commissioner DeBone pledged to advocate for additional space for the Clerk's
Office. Dennison explained the requirement for a multipurpose space, a sorting
room, and a secure storage space. The current path is unconventional and not
linear, and he described an ideal setup.
9. Debrief: Request for any department(s) to return on Wednesday, May 14
• No departments were requested to return the following day.
Following up with Commissioner Adair on her previous request related to
federal grants in the Natural Resources Fund, Sparks said that approximately
$506,000 in federal grants were budgeted in FY25, consisting of three separate
grants:
o A $140,000 FEMA fire risk reduction grant was received in FY24 due
to all the related work being completed in FY24.
o $200,000 in BLM fire risk reduction grants were projected, but they
will receive only $90,000 and this will post by the end of FY25.
o $166,000 in Community Development Defense Grants were
projected but will not be received.
• Sheriffs Office special requests will be considered at tomorrow's meeting.
• Commissioner DeBone wants to speak more about optimizing Assessment and
Taxation (A&T) funding for the Assessor's Office, 24-hour custody for the juvenile
Detention Center, and the DA's Office mid -year FTE request.
• Commissioner Adair wants to learn more about 4H fees from the OSU Extension
Service during their presentation tomorrow.
• Chair Fister noted the Elected Officials Compensation Committee discussion will
take place tomorrow.
ADJOURNED: Upon no further business, Chair Fister adjourned the Tuesday Budget
Hearing at 4:33 p.m., to be continued at 8:30 a.m. on Wednesday, May 14, 2025.
DATED this %' Day of 2025 for the Deschutes County Board of
Commissioners.
ANTHONY•
May 13, 2025 BUDGET HEARING Page 16 of 17
L �A clz ',�
PATTI ADAIR, VICE CHAIR
ATTEST:
PHIL CHANG, COMMISSIONER
REC RDING SECRETARY
May 13, 2025 BUDGET HEARING Page 17 of 17