LOC News
2025 State of the Cities Report Now Available
Every two years, the LOC conducts a survey to gauge the general fiscal condition of the cities in Oregon. This survey collected data between October 20, 2025, and November 14, 2025, with 49 cities responding. Read the State of the Cities Report here.
The survey found that 70% of cities have seen an increase in service demand, compared to 68% in 2023 and 56% in 2021. Additionally, the financial outlook is significantly more distressing. In the past, 90% of cities were better able or able to meet their financial needs compared to the previous year. This year’s survey shows only 65% respond in the same way.
For most cities, the primary sources of revenue are property taxes and utility franchise fees. Studies by the LOC for the last decade show franchise fee revenues often do not keep pace with inflation. Additionally, the property tax constraints from Measures 5 and 50 have created a system that limits the amount of taxable revenue available to local governments. This means that primary revenue sources for cities are steadily shrinking, forcing local governments to either rely on alternative revenues, cut spending, or eliminate services.
Contact: Jayme Pierce, General Counsel – jpierce@orcities.org
Last Updated 1/23/26