Our Budget Reality
The city of Independence, like many communities across Oregon, is facing a long-term budget challenge. The cost of providing services is rising faster than the revenue available to fund them, leaving our General Fund at its lowest point in years. Without action, this gap will continue to grow.
Why It’s Happening
Oregon’s property tax system limits annual growth to 3%, while the cost of running the city—staffing, equipment, maintenance, and operations—
continues to rise at 7–9% each year. This mismatch creates a structural deficit. If no changes are made, the city’s General Fund reserves could be depleted as early as the 2028–29 fiscal year.
What We’ve Already Done
The city has already taken several steps to slow the decline of the General Fund, including:

  • Reducing Library and Museum hours.
  • Cutting staff in multiple affected departments.
  • Closing City Hall on Fridays to save on operating costs.
  • Implementing a Public Safety Fee.
  • Updating service fees to more accurately reflect costs.
  • Listing city-owned properties for sale to rebuild reserves.

These actions have helped, but they are not enough to fully resolve the structural deficit.

Path Forward
The city is actively pursuing long-term strategies to stabilize the general fund and protect services. These efforts include:

  • Working with HUD experts who provided financial analysis and a forecasting model to guide spending decisions.
  • Investing in economic development to grow long-term revenue.
  • Pursuing grants wherever possible to support projects.
  • Evaluating programs and services to ensure resources are used efficiently.

These steps are designed to create a stronger, more sustainable financial foundation for the future.
Options We May Need to Consider
To protect city services, several options are under consideration:

  • Rebuild the General Fund using one-time revenue from property sales.
  • Exploring a 5-year levy or fee to support Community Services.
  • Determining which services are “essential” and which may need to be scaled back.

We’re committed to transparency, careful planning, and keeping residents informed every step of the way. Read the full Financial Recovery Report here: https://www.ci.independence.or.us/wp-content/uploads/2025/12/Report-to-the-Community-Fiscal-Recovery-Plan-Final.pdf