LA GRANDE — Staffing, budget and housing were key topics of discussion during the annual La Grande City Council retreat on Monday, Jan. 27.

During the retreat the council outlined its priorities with city staff for the upcoming fiscal year.

No official decisions of votes can be conducted during the retreat. The evening serves as an opportunity for members of the council to collaborate on ideas with city staff, which will then become a point of emphasis during the budget development for the 2025-26 fiscal year.

Staffing and budget

In recent years, the city of La Grande has budgeted to have higher expenditures than anticipated revenues, according to City Manager Robert Strope. The city uses the ending cash-on-hand balance to cover the difference, which has allowed La Grande to maintain staffing levels and programs.

Councilors requested an updated five year forecast of the city’s finances, so Finance Director Heather Rajkovich prepared two projection models for the council to review.

Both models use the same projected revenues — $82.8 million — and the same beginning cash on hand of $10.7 million.

The first model assumed that La Grande would receive 100% of projected revenues and spend 100% of budgeted expenditures with full staffing. Under this model the city is projected to have $94.6 million in expenditures and transfers, which would mean an ending cash on hand shortfall on June 30, 2029, of $1.1 million.

The second model also assumed that the city would receive 100% of projected revenues and was at full staffing levels, but reduced materials and services expenditures to reflect the percentage spent historically by each department. This model projects the city would have $87.7 million in expenditures and transfers, which would leave the city with an ending cash on hand surplus of $5.8 million.

The city needs to maintain between $1.5 million and $1.7 million in the general fund to operate from the start of July through November when the bulk of property taxes comes in.

Members of the council expressed a desire to maintain current staffing levels, programs and functions throughout the city.

Recruitment, retention and succession planning are top priorities for the upcoming year. The city will need to fill three positions — fire chief, city manager and urban forester — to fill upcoming retirements.

The search is already underway for the new fire chief and the city has begun the process of selecting a professional recruitment firm to help fill the position of city manager. La Grande Parks and Recreation plans to request funding to fill the urban forester position with a brief overlap period to help with the transition.

La Grande Police Chief Gary Bell said the department has continued to struggle with recruitment and retention. Councilor Rikki Jo Hickey inquired about what was causing the attrition and if there was anything the city could do to help.

“It’s a complicated set of circumstances,” Bell said. “It started probably eight or nine years ago now. We started retiring people.”

He added the city and police department have implemented a number of things to enhance retention, such as a pay structure change, peer support and wellness programs.

“We’re still in that rebuilding phase and it’s going to take a while,” Bell said.

Bell added that law enforcement agencies across Oregon is struggling when it comes to recruitment.

Strope also wanted to bring to the council’s attention that several departments within the city, such as planning, city manager and parks, do not have clear paths for career progression.

“I think that’s critical to the future of the city,” Councilor David Glabe said.

Housing

Another key topic the councilor discussed during the retreat was housing.

During the next 20 years, La Grande will need around 800 new dwelling units to accommodate projected residential growth, according to the city’s 2019 Housing Needs Analysis.

Strope said the city has taken steps to address the housing need within La Grande, such as updating the code and adjusting minimum lot size requirements. However, there are more “levers” La Grande could consider.

One such option would be the Eastside Water and Sewer Infrastructure Project. This multimillion-dollar project would construct a trunk line — the primary distribution network required to bring water and sewer services to the border of future proposed housing developments.

The land for the project — located between Highway 30 and Interstate 84 from H Avenue to McAlister Road — is the city’s path of growth, according to Community Development Director Mike Boquist.

“As we look at our residential growth and vacant land and where we can go, that’s pretty much it,” he said.

Developers have expressed interest in building subdivisions in the area in the past, but the lack of connection points into city water and sewer lines has limited these opportunities from moving forward.

“We have interest a couple of times a year — every single year,” Boquist said. “As soon as they start crunching numbers they go somewhere else.”

The estimated cost of this infrastructure project was $2.9 million in October 2022.

Strope laid out three options for the council to consider.

First, the city could pay 100% of the cost to extend the services using either existing water and sewer reserves or low-cost financing for the project then recoup the cost through future service fees and system development charges. In this option, the city would only allocate funds in conjunction with a commitment from a developer to create a significant housing project.

Secondly, the city could enter into a public-private partnership with a developer where both parties covered a portion of the cost to extend services.

Lastly, similar to option one, the city could pay 100% of the cost in anticipation for future interest and development without private commitment. This option could have potentially lower costs given current versus future price tags, but there is an inherent risk with this option since there is no guarantee that a developer will come in and build the housing after the city has made the investment.

Strope would like the council members to take a position on which — if any — of the funding options they would be comfortable committing to, so that the next time a developer expresses interest in building.

Councilors expressed interest in the project and requested city staff hold a work session to discuss the topic further, along with pricing and a possible timeline.