The Budget Gap: What We've Done So Far

We haven't sat idly by watching the budget gap approaching. The City of Corvallis has taken steps to plan for and invest in core community services over the last 10 years.

Sustainable Budget Task Force and The Three-Legged Stool Funding Model (2015-2019)

In 2015-2016, a Sustainable Budget Task Force had identified significant unmet needs across the entire organization — far more than what could be satisfied through a typical five-year voter-approved levy. This effort was followed by the development of the "Three-Legged Stool" revenue model to implemented in to begin addressing the long-term trends of increasing costs and limited revenue. Work during this time included:

• $1.2 million in budget cuts - The City took action early on by cutting $1.2 million from the annual budget in 2016. This included re-organization and evaluating opportunities for cost-saving measures before seeking revenue. Early action paved the way for other decisions over the last 10 years that identified new revenue to support community services.
   
• 5-year local operating levy - In 2019, the City proposed a new five-year, voter approved local operating levy to support livability services at the Library and Parks & Recreation. The levy was renewed (at the same rate) in 2023 and generates about $7 million annually to support livability services.
   
• 911 service district - The City of Corvallis partnered with Benton County to create a new service district in our area specifically to support 911 dispatch services. This created a new funding stream for this vital public safety service.
   
• City service fees - The City of Corvallis assesses fees for monthly billing customers. These fees are tied directly to specific community services, such as sidewalk maintenance, urban forestry and public transit. Starting in 2019, the City Council added new fees to support public safety services from the Police and Fire departments. These fees have helped to offset the reduction in property tax funding for these vital community services. 

Each of these revenue measures was developed through an extensive data-driven process with public engagement. 

Together, these revenue measures helped delay and mitigate the full impact of our budget gap. 

City Facility Needs Assessment and Strategy Development (2021-2022)

• City facilities represent critical infrastructure used to deliver services to the public. For decades, the City chose to invest in community services at the expense of maintaining its existing facilities. Starting in 2021, the City began a planning process to understand those needs and plan for improvements. Since then, we’ve rebuilt two fire stations, started construction on a new park maintenance facility, and developed plans for a new civic campus and police station. Additional facility improvements are planned for the future — this is an investment timeline that extends out many years into the future. 

Where We Are Today

For the last year, Council, staff, and consultants to evaluate:

• the City’s financial position
• new and existing revenue possibilities and tools
• current service levels and possible reductions
• comparator city revenue models for services
• service and financial impacts on community members including people who live, work, and visit Corvallis

In the coming months, Council and staff will continue to work on:

• Refining and setting revenue targets needed to cover the long-term operational budget gap and estimated investment and debt service to replace and invest in City facilities. This also includes evaluating options and targets to utilize these taxes in place of future public safety fee increases.
• Refining the details of both a Payroll Tax and Personal Income Tax for future consideration as a means to spread the cost burden across the many segments of the public who live or work in Corvallis in a more equitable manner. This includes exploring both flat and graduated rates for both taxes.
• Discussing possible service reductions and their impacts on the community.
• Informing the community to ensure community members understand the current challenges, solutions, and impacts the City is facing and engage the community in implementing solutions for addressing them.

Go back: The Budget Gap: 2027 and Beyond