Sherwood's new budget calls for the reduction of eight full-time equivalent positions that include a total of 10 employees. (File photo)

The equivalent of 8 full-time equivalent positions will be eliminated in 2025-27 budget

The Sherwood Budget Committee has approved its first biennial budget, a $263.7 million document that calls for reducing staff by 10 full-time, half-time or on-call positions to help balance that budget.

The committee signed off on the budget Thursday, June 5, forwarding it to the city council for formal approval at a special June 24 meeting. 

Reduction in staff includes employees from the library, information technology, planning, code compliance, municipal court, police, parks maintenance and engineering. 

“Laying off employees is one of the most difficult decisions we face in local government,” City Manager Craig Sheldon said. “These reductions are the result of tough budget decisions as we realign our resources to match long-term financial realities.”

The last time the city had employee layoffs was in 2018 when budget cuts included eliminating an assistant city manager position.

While one of the employees whose position is being cut in the new budget has already left the city, the remaining employees will work through June 30, Sheldon said.

City sees traffic camera revenue decline

Sherwood’s 2025-27 budget includes a $40.5 million general fund, a portion of the budget that pays for general city services including police and public works departments. Employee salaries are tied to that fund as well.

The main reasons for reductions to the budget include less money coming into city coffers from police photo enforcement (both from red-light and speed detection cameras), slowing private development, reduced state-shared revenues and flat franchise fees. At the same time, the city is contending with rising costs of employees’ compensation packages, materials and services, general liability insurance, property insurance and infrastructure. 

“These pressures have required reductions in staffing and operation budgets, which may lead to service delays, reduced capacity, and added strain on employees,” stated the city’s budget document.

Down notably is revenue from red light and speed radar cameras, the former of which were first turned on in October 2010. 

Prior to ongoing road construction at the intersection of Roy Rogers/Tualatin-Sherwood roads and Highway 99W, the city was averaging a little over $2.1 million per year in revenue based on a three-year average from those cameras. 

“This current fiscal year, we are projecting total collections to be $1.5 million,” Sheldon said, adding that one issue for the reduction is related to road construction at that intersection when some camera systems were not operational over a five- month period. 

He said when compared to pre-construction figures, the loss in revenue is in the range of $400,000 to $450,000 per year. 

“Moving forward, the city expects to average around $1.7 million from the camera systems a year,” Sheldon said.

However, that loss of revenue means cutting a full-time and a half-time employee in Sherwood’s municipal court.

In addition, one half-time employee – in this case a retired police officer who reviewed tickets from the traffic cameras – will be laid off as well.

 

Communications/public engagement coordinator position added

A slowdown in private development growth also means the city is laying off a full-time planning coordinator position.

Sheldon said additional budget savings will be realized through reduction in materials and services, which include such things as materials used for playground and consulting services. 

Still, the city plans to soon add a communications/engagement coordinator position to the city.

“While layoffs are a difficult outcome of current budget constraints, this position reflects a planned priority to improve organizational efficiency, communication, and service delivery during a time of transition,” said Sheldon. “It will support departments impacted by staff reductions and directly align with the city’s goals for stronger community engagement.”

The person hired will oversee the city’s website management, strategic social media efforts and more. They also will support the city’s branding and marketing.

“This is not simply a communications role, it’s a strategic investment in the city’s ability to remain connected, transparent and effective moving forward,” Sheldon said.

The city manager said the city moved to a biennial budget process that is expected to improve efficiency and reduce the administrative burden of annual budgeting.

“This approach allows staff and council to focus more on long-term planning, policy development and service delivery during the off-year,” Sheldon said.