SCM Has Significant Concerns About the City's Budget

CM has many significant concerns about the City's recent budgeting effort for the next Fiscal Year (FY26-27).  Read the overview below, click the links above for more detailed information. 

• The City Has Spent Almost $230K on Accounting Fees in the past two years, but still refuses to provide information on beginning fund balances or financial reserves.  Money which is not properly reported within the budget, and not claimed explicitly as an investment is at risk of becoming an unaccountable slush fund.  Residents deserve honesty, not "smoke and mirrors" from their City Leaders.  Click here to see the bank balances. 

• The City Claims Reorganizing City Hall will save over $118,000 in costs, to be used to support the Sheriff's contract.  We believe this statement is demonstrably false.  Overall budgeted employee costs have actually increased by up to $116,000.  Click here to see details.     

• SCM believes the budget is overly optimistic. Revenues are slightly overstated, expenses are slightly lowered, and there is zero wiggle room in the budget.   The City has saved approximately $70,000 by cutting expenditures for legal fees, promotion & tourism.  Business license revenue is expected to increase by over 270%.  Revenue for transient lodging tax is being projected at more than double the annual average, and the overage is being applied to new park construction. 

Shady Cove never had a large budget for events, but dedicated volunteers and community donations made things work.  It's not really a surprise, but this year the City has declined to provide any meaningful amount of money for City events and promotions. Councilor Vanier tried valiantly to convince the Council to allocate at least $5,000 for events, but unfortunately after his recent resignation, this appears to have lost support.  It's a shame, because events like the Summer Bash and Fishing Tournament drew a large crowd last year.  The City  has decided to dedicate the bulk of its transient lodging tax money to paying for park improvements, leaving only $1,000 for events. 

Scroll below for a screenshot of the budget.  Source:  https://shadycove.org/wp-content/uploads/2026/06/FY2026-27-Budget-Approved.pdf