NEWBERG, Ore. — The Chehalem Parks and Recreation District approved a $24.1 million budget for fiscal year 2026-27, a roughly 1.9% decrease from the prior year’s $24.6 million, driven primarily by a drawdown of capital development reserves as the district executes multiple construction projects across Newberg and Dundee.
The Budget Committee approved the budget following a Budget Committee meeting April 7 at CPRD’s administrative offices at 125 S. Elliott Road in Newberg. CPRD’s fiscal year is from July 1 to June 30.
Despite the overall decrease, the district’s General Fund — which covers day-to-day operations — climbed 8.7%, from $18.5 million to $20.1 million. Superintendent Clay Downing attributed that increase largely to grant revenues, including funds already awarded but not spent in the prior fiscal year and a newly awarded grant.
“The budget is balanced and reflects a stable operation of the existing demands, multiple active capital projects occurring in both Newberg and Dundee, and the creation of a new Registration Department to align with the District’s management structure,” Downing wrote in the budget message submitted to committee members.
Capital Spending Jumps
Capital outlay represents the budget’s most dramatic shift, jumping from $4.35 million to $7.44 million — a $3.09 million, or 71%, increase in the General Fund alone. Across all funds, total capital spending reaches approximately $9.7 million.
Projects currently under construction include Phase 1 of the Newberg-Dundee Bypass Trail, the Jaquith Park Pickleball and Tennis Courts, and Sander Estate Park in Dundee. Design and planning work is also underway for Renne Field. The capital projects are not restricted to large projects, Downing said, and include all one-off purchases across all CPRD properties.
Grant funding is carrying a significant share of that capital load. Of the $9.7 million in total capital outlay, approximately $4.27 million — 44% — is expected to come from grants and other outside sources. The district noted in budget documents that it typically must expend funds before grants are reimbursed.
New Department, Leaner Staffing
The budget creates a new Registration Department to formalize management of registration, customer service, and public information activities, which had previously been housed within the Administration Department. Two full-time and 3.62 part-time positions were migrated from Administration to the new unit.
Despite the organizational addition, overall district staffing dropped from 93.05 to 85.50 full-time equivalent employees. Downing’s budget message framed that reduction as a structural consequence of rising fixed costs — payroll processing, employee benefits, and taxes — rather than a reduction in services delivered.
One new full-time maintenance position was added to the Golf Maintenance Department to address staffing consistency, offset by a reduction in part-time hours.
Preschool Closure Reflected
The budget formally reflects the closure of the district’s Preschool Department, which ended operations in summer 2025 following what the district described in budget documents as “record low enrollment, excessive and chronic cost recovery deficits, and major facility renovation needs.”
Personnel from the program were transferred to the Childcare & Markets Department.
The district said it continues to seek funding for major renovations to the Bonnie Benedict Preschool facility — which it noted has hosted district programs for more than 50 years — and that it will pursue opportunities to restart programming following renovation. Budget documents indicate tentatively awarded grant funds of $991,000 have been identified for the renovation; however, official confirmation is pending.
Revenue and Reserves
On the revenue side, property tax collections are projected to rise modestly from $3.99 million to $4.11 million. Fee-based program revenues — from aquatics, golf, childcare, and other services — are expected to increase from $5.29 million to $5.57 million.
The System Development Fund, which finances new park development and cannot be used for operations, fell from $4.66 million to $2.26 million. Downing’s message noted the reduced balance reflects the district’s active project spending to develop Sander Estate, Jaquith’s Pickleball and Tennis Courts, and the start of the Newberg-Dundee Bypass Trail.
The budget also inaugurates an annual interfund transfer of approximately 5% of the General Fund’s beginning fund balance — roughly $294,818 — into a new Equipment and Major Maintenance Fund, which the district characterized as a long-term reserve for major facility renovation or replacement needs.
Operating contingency was reduced by approximately $1.97 million compared to last year, but the district said the remaining $1.94 million equates to about three months of operating costs, representing 9.6% of General Fund resources.
