Fiscal Year 2026: A Year in Review

As we begin a new fiscal year, it's a great opportunity to reflect on everything we've accomplished together over the past twelve months. From major infrastructure investments to new community amenities and responsible financial management, Fiscal Year 2026 has been another year of progress for the City of Waldport.

(This is a work in progress, additional content and photos are expected shortly)

Southworth Park

One year ago, on July 3, we celebrated the opening of the Southworth Park playground. Since then, thousands of children and families have enjoyed this incredible community asset. Even on rainy days, it's common to see kids climbing, sliding, and making memories at the park.

The improvements haven't stopped there. During the past year, the City has:

• Paved the former high school track, creating a safe, accessible space for walking, jogging, and exercise.
• Constructed hundreds of feet of sidewalks connecting park amenities.
• Added two pickleball courts pad with surfacing coming shortly.
• Installed dedicated ADA-accessible parking.

Even more improvements are on the way.

The City is currently reviewing bids for permanent restroom facilities, and construction of the new basketball court is scheduled to begin soon. Four new gazebos will soon be installed over the picnic areas, along with additional picnic tables.

We are also working to complete the remaining pickleball court improvements and recently met with engineers to review plans for a future bicycle pump track, which will be located at the former RC track site.

Southworth Park continues to grow into the premier recreational destination our community envisioned.

Dog Park

The dog park at Southworth Park was created in response to requests from residents, and it has quickly become a popular gathering place for local pet owners.

Following community feedback, the City expanded the facility by creating separate areas for large and small dogs, installing a double-gated entrance for added safety, and recently adding covered gazebos and shaded seating on both sides of the park.

Later this summer, we also expect to bring a permanent water supply to the dog park, making the facility even more comfortable for pets and their owners.

Smart Water Meter Project

In 2019, the City authorized a nearly $1.3 million project to replace Waldport's aging water meters.

After taking office in 2020, the new City Manager reevaluated the project and negotiated a dramatically lower cost by using proceeds from the City's successful lawsuit against a contractor involved in the water tank project in 2008. Rather than financing the project with a large loan, the City reduced the contract cost to approximately $350,000 for a new smart meter system.

Implementing the new system required installing communication towers, replacing every water meter throughout the city, and bringing each meter online.

As of early July, nearly two-thirds of the meters had been installed, and by the end of the month every water meter in Waldport will have been replaced.

The total cost of the project is expected to remain under $420,000—less than one-third of the originally authorized amount.

Most importantly, the City completed this project without taking on additional debt. By paying for the work as it progressed, and by using settlement funds from the earlier lawsuit, the project was completed without increasing costs to water customers.

New Water Storage Tank

Although construction was completed during the previous fiscal year, 2026 marked the first full year of operation for Waldport's new 350,000-gallon water storage tank.

While smaller than the City's primary two-million-gallon reservoir, this additional capacity provides significant operational flexibility. It allows the larger tank to be taken offline for cleaning and maintenance while still maintaining adequate water supplies for both daily use and fire protection.

During periods of dry weather, the additional storage also allows the City to delay or reduce the need for water conservation measures.

Today, Waldport has more than 2.6 million gallons of total water storage capacity.

Even better, the entire project was funded through a $2.2 million State grant, allowing this critical infrastructure improvement to be completed without increasing water rates or adding debt.

Water Bills

Let's talk about water bills.

This year marks the final step in a planned series of water rate increases approved by the City Council four years ago. In 2023, the City determined that it was not setting aside enough revenue in its water and sewer funds to cover major repairs and future infrastructure needs. Without adequate reserves, the only option would have been to borrow money when large projects arose.

Borrowing is expensive. In fact, Waldport still pays more than $100,000 each year on a bond issued in 1994. The current City Council has made a conscious commitment to reducing debt whenever possible because borrowing significantly increases the overall cost of projects.

To avoid repeating that cycle, the City adopted a four-year plan of gradual rate increases designed to build healthy financial reserves. Think of it like setting aside money in a savings account for unexpected expenses. By planning ahead, the City can pay for future repairs and improvements without relying on costly loans.

This year's adjustment is the final scheduled increase under that plan. Beginning next year, annual water rate adjustments are expected to be limited to inflationary increases needed to keep pace with rising operating costs.

Throughout this process, Waldport's water rates have remained in the middle of the range compared to other communities in Lincoln County. Every city faces many of the same infrastructure challenges, and Waldport has worked to balance responsible financial planning with keeping rates as affordable as possible.

Reducing Debt and Avoiding Borrowing

One of the City's greatest accomplishments over the past several years has been its commitment to reducing debt and avoiding unnecessary borrowing.

In 2020, the City carried more than $2.4 million in outstanding debt. Today, that total has been reduced to less than $1.1 million—a reduction of more than half in just five years.

The goal is ambitious but achievable: to make the City of Waldport debt-free by 2030. We are well on our way.

What does that mean for taxpayers?

If the City stays on its current course, the General Obligation (GO) Bond can be retired years ahead of schedule. That means Waldport property taxes will decrease once the bond is paid off. Unlike many jurisdictions that replace one bond with another, the current City Council's goal is to allow that tax to expire, returning those dollars to the community.

Responsible financial management isn't just about balancing today's budget—it also means reducing long-term costs, eliminating interest payments, and putting taxpayers first.

Financial Audits

Not everything goes according to plan, and one area where the City has faced challenges has been completing its annual financial audits.

An independent audit is a detailed review of the City's financial records conducted by a third-party accounting firm. These audits are essential for transparency, accountability, and compliance with state requirements.

When the COVID-19 pandemic disrupted operations in 2020, the City's auditor indicated that the audit schedule would be delayed. Although the City contracted with outside financial professionals in both 2021 and 2022 to manage its accounting functions, the audits remained incomplete despite those efforts.

In 2023, the previous auditor finally completed one outstanding audit. The City then terminated that firm's services and hired a new auditing firm to help bring Waldport back on schedule.

Beginning in late spring 2024, the new auditors began working through the backlog of outstanding audits. Waldport was not alone in this challenge—hundreds of municipalities across Oregon experienced similar delays following the pandemic.

Progress is now being made. In June, the City received a draft of the Fiscal Year 2021 audit. Now that the new auditors have become familiar with the City's financial records, we expect the remaining overdue audits to be completed much more quickly.

The City remains fully committed to bringing every audit up to date and meeting all financial reporting requirements.

While the audit backlog has been frustrating, it is important to note that the City's finances remain strong. Debt continues to decline, reserve balances are healthy, and the City's accounts are reconciled and monitored on an ongoing basis. We appreciate the community's patience as we complete this process and believe it is far better to do the work thoroughly and accurately than to rush it.

Sewer Expansion to the Industrial Park

The City's strong financial position has also helped secure additional state funding for projects that support future economic growth.

Last summer, the City completed the first phase of a sewer expansion to the Waldport Industrial Park. This project was made possible through partnerships with Lincoln County, the Dahl family, and the Lincoln County School District. Extending sewer service into the industrial park opens new opportunities for business development, job creation, and long-term economic investment.

The first major beneficiary of this project is the new Lincoln County Animal Shelter, which opened this year.

Phase Two is now underway and will extend sewer service throughout the remainder of the industrial park. Thanks to a $2 million state grant, this critical infrastructure project is being completed without additional costs to City taxpayers or sewer ratepayers.

Safe Routes to Schools

Another major infrastructure project reached completion this year with the opening of the long-awaited Safe Routes to Schools sidewalk along Crestline Drive.

Residents can now walk safely from the Township neighborhood near Ball Boulevard to the entrance of Crestview Schools using a continuous, wide walking path that connects to the new sidewalk.

The project initially received construction bids exceeding $3 million. Through careful planning, value engineering, and cost-saving measures, the City successfully completed the project for less than the available $1.7 million grant, allowing the sidewalk to be extended farther than originally planned—from Salmon Street all the way to Ball Boulevard.

More improvements are already in the works. The City anticipates that Lincoln County will soon transfer jurisdiction of Crestline Drive to Waldport. Once that occurs, the City plans to install additional traffic-calming measures and signage to further improve safety for students, families, and pedestrians.

Looking ahead, the City is already preparing applications for future sidewalk grants with the goal of eventually extending pedestrian access all the way to Southworth Park.

Facility Improvements

This year also brought important improvements to several City facilities.

Last fall, the Visitor Center near the Alsea Bay Bridge received a new protective roof coating. During the project, however, it was discovered that portions of the original metal roof had been installed incorrectly many years ago. Once the coating was applied, those installation issues resulted in several new leaks.

The contractor responded by bringing in a metal roofing specialist, who successfully repaired and sealed the vast majority of the problem areas. Only a few minor leaks remain, and the contractor is scheduled to return in the coming weeks to complete those repairs.

Funding for this work came from Transient Lodging Tax revenues. The Visitor Center serves as home to both the Waldport Chamber of Commerce and the City's Heritage Museum, making it an important community asset.

The Waldport Public Library also received a much-needed new roof this year. During construction, crews discovered that three older roofing systems remained beneath the existing roof. Rather than simply adding another layer, the contractor removed all previous roofing materials and installed an entirely new roof designed to provide decades of reliable service.

This project was funded through savings accumulated within the Library budget over several years.

The Louis Southworth Statue Returns

Visitors to the Heritage Museum will once again be welcomed by the statue of Louis Southworth.

The statue has returned to the Visitor Center and is currently displayed inside the museum while preparations are made for its permanent location near the building's large round window. Once installed, it will be illuminated so that residents and visitors can enjoy it both inside the museum and from outside the building at any time of day.

After careful consideration, the decision was made to display the statue indoors to protect it from deterioration caused by the coastal environment and salt air.

The statue itself was made possible through a generous donation from the Oregon Coast Visitors Association.

Festivals, Fireworks, and Community Events

Waldport continues to be a community that celebrates together, and this past year has been filled with successful events.

The Wednesday Market has returned for another outstanding season. Organized by City Recorder Megan Torres, the market is consistently full of vendors and visitors each week. A vendor survey conducted last year resulted in a 100% satisfaction rating for market management—a testament to the hard work that goes into making the event successful.

Preparations are also underway for the annual July 3rd Fireworks Show. A few years ago, the City Council chose to permanently fund the fireworks through Transient Lodging Tax revenues, eliminating the uncertainty of annual fundraising and ensuring this beloved community tradition continues each year.

One of the many volunteers helping make the event possible is Finance Manager Ellen Valentine, who participates each year on the fireworks crew. Waldport remains one of the few communities where the fireworks are still hand-lit, preserving a unique tradition that makes the celebration even more memorable.

The community also celebrated the 70th Annual Waldport Beachcomber Festival over Father's Day weekend. Thanks to the tremendous efforts of a new volunteer committee working alongside the Waldport Chamber, the three-day event featured the return of the popular bed races, a classic car show, live music, street performances, dances, and activities throughout the weekend.

The City contributed $2,500 in Transient Lodging Tax funds to help support the festival and ensure its continued success.

The community calendar remained full throughout the year with events including Trunk or Treat, the Lighted Christmas Parade, and the Waldport Chamber's Beach, Bike & Blues Festival, which successfully debuted during its new time of year.

Looking ahead, the City is developing a comprehensive annual community events calendar to make it even easier for residents and visitors to enjoy everything Waldport has to offer.

Partnering with the Waldport Chamber

The City continues to value its strong partnership with the Waldport Chamber of Commerce and the important role the Chamber plays in supporting our local businesses and promoting our community.

Through this partnership, the Chamber provides local businesses with advertising, marketing, event promotion, and social media exposure that many small businesses would not otherwise have the resources to achieve on their own. Together, the City and Chamber work to showcase Waldport as a welcoming destination for visitors while supporting the businesses that make our community unique.

To support these efforts, the City provides funding for community events, tourism advertising, staffing assistance, and office space within the Visitor Center. These investments are funded through Transient Lodging Tax revenues, ensuring that tourism dollars are reinvested to promote Waldport, strengthen our local economy, and enhance the visitor experience.

The partnership between the City and the Chamber continues to be an important part of Waldport's economic development strategy, helping attract visitors, support local businesses, and build a vibrant community for residents and guests alike.