City of Gresham faces $8.6 million budget gap after public safety levy failure

PORTLAND, Ore. (KOIN) -- Gresham City Council is currently facing an $8.6 million budget gap after voters said no to a public safety levy that would have funded police, fire and homeless services.

Because their property taxes are far lower than neighboring cities its size, Gresham has long struggled to sustain its needs. That's why officials proposed the recent public safety levy to hire more officers and firefighters and handle homeless services. But at this point, it is failing by a slim margin as the July 1 budget adoption deadline looms, so city leaders are now making tough budget decisions.

"Our budget is substantially smaller than any similar-sized city, upwards to $40 million," said Gresham Mayor Travis Stovall. "That's a substantial difference. And we have to provide all the same services."

To make up for most of the deficit, Stovall says they'll keep the police, fire and parks fees at $15 per month. But they'll have to slim down city services by leaving unfilled positions and no longer investing in mobile emergency care.

"We've got to balance the budget," he said.

As for the rest of the $3 million shortfall, Assistant City Manager Elizabeth Coffey says they're fortunate to have money from the Federal American Rescue to float them this time around.

"This is a temporary solution. And so we will need to continue to have these difficult conversations about a permanent solution to put into place," she said. "When we came to voters and said, 'hey, we are really in trouble and we need more money,' it was a surprise to them."

Voters who supported the public safety levy are hoping it can be put back on a future ballot.

"I think that at some point we really can't be any leaner. But again, that goes to the city and the leadership of the city being really transparent about what they're doing. We have to ask the citizens what their no was about," said Gresham voter Kathy Keathley.

While tough talks took place Tuesday between council members, city leaders tell KOIN 6 they're committed to listening to a community and understanding what it will take to pass a public safety levy in the future.

While the council is committed to bringing the public safety levy back to a vote, there is no consensus on when that would be. Whether that would be this November, next May, or the general election.

Voters haven't passed a levy in the City of Gresham since 1992.