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Focused. Frugal. Forward.
This week, the City Council approved the 2026 City Budget for a grand total of $41.7 million in community investments for the year ahead. This includes our General Fund, utilities, debt service, capital project funds, and all special revenue and enterprise funds.
This is truly a status quo, steady-as-she-goes budget. The General Fund, the part that runs day-to-day City services, is increasing from $12.5 million to $12.9 million, which is a modest 3% lift. In today’s inflationary environment, 3% is about as close to zero as a local government can realistically get while still maintaining service levels that our community depends on.
Over the course of eight weeks, the Finance & Personnel Committee has scrubbed this budget fund by fund. Together, we made tough but responsible adjustments:
• Cutting $470,000 from the Storm Water Utility
• Cutting $145,000 from the Water Utility
• Delaying a full-time Civil Engineer
• Reducing the scale of a mandated Collection Systems Operator position
• Reducing seasonal staffing
• Postponing replacement of two School Resource Officer vehicles
This is What a Disciplined, Conservative 3% Budget Looks Like
The 2026 budget protects core services, supports our 125 full-time employees with a modest 3% COLA, and keeps MMT Route 1 fully funded even as transit costs outpace revenues. Unless the community is prepared for reductions in service levels or scaled-back public safety staffing...and I don’t believe that’s something anyone wants...holding the line at 3% is a responsible approach.
A quick note on employee Cost of Living Adjustments, because a few residents have asked: lowering the COLA from 3% to 2.5% would save only about $15,000, but it would have a very real impact on morale, retention, and recruitment, especially among those at the lower end of the pay scale. Keeping it at 3% is both fiscally modest and strategically smart for organizational health.
As for the Neshotah Beach concession stand building, there is $0 for that project in the 2026 General Fund operating budget. Any future improvements, depending on what the Council ultimately approves, would be funded through our normal 10-year capital borrowing cycle, staying well within our very conservative debt policy.
Speaking of debt, I’m proud of how responsibly Two Rivers manages its obligations. We voluntarily cap our general obligation debt at 3% of EAV, well below the state’s 5% limit, and 98% of our debt is repaid within 10 years.
For 2026, the City plans to borrow $2M–$2.2M for community investments, consistent with what Councils have approved for more than a decade.
So, in short: This is a stable, conservative, 3% budget that keeps Two Rivers moving forward without dramatic changes or surprises. It protects the services our residents expect, keeps our financial footing solid, and gives us another year of stability in what continues to be a challenging fiscal environment for local governments everywhere.
Thank you for your trust, your questions, and your engagement. I’m grateful to work alongside this community as we plan responsibly for the year ahead. If you have any questions or concerns, do not hesitate to reach out to City Hall for answers.
-City Manager, Kyle Kordell
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