City Manager outlines Fiscal Transformation Initiative to address rising service costs

City Manager John O'Brien said La Grande created the Fiscal Transformation Initiative, or FTI, to confront a structural budget problem: expenses for services such as police, fire, emergency medical services, streets, utilities, parks, recreation and the library are rising faster than many of the revenues that support them. "If recurring expenses continue to exceed recurring revenues, reserves decline, and the choices available to the community become increasingly difficult," O'Brien said.

O'Brien framed FTI as a planning tool rather than an emergency measure. "FTI is about planning, not panic," he said, and added that FTI includes "PACE E, a structured framework for working toward a balanced sustainable budget without waiting for a financial emergency." He said the initiative is intended to help the city understand current finances, plan for future pressures, act early when necessary, and protect core services while minimizing the burden on the community.

O'Brien stressed that early identification of budget stress preserves options for the city and helps keep reserves at prudent levels. He said the goal is to balance long-term fiscal sustainability with service protection so that La Grande can continue to meet residents' needs.