GERVAIS, Ore. — The city of Gervais is facing a financial crisis that could reshape the future of local law enforcement. With a growing deficit and questions about management, leaders are weighing whether to keep the city’s own police force or contract with outside agencies to save money.
A Budget in the Red
At the close of the 2023–24 fiscal year, Gervais reported a $392,000 deficit in its general fund. An official audit of last year’s spending is expected within weeks, but leaders already know the numbers are troubling.
Overspending in administrative costs was a key issue. The city budgeted $236,000 for administration but ended up spending nearly double — about $474,000 — largely in the “Professional Services” category.
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Certified public accountant Sarah Johnson, brought in to review the city’s finances, said she found no evidence of corruption or theft. Instead, she pointed to poor planning, inadequate record-keeping, staff shortages, and political distractions.
These political strains are familiar to Gervais residents. In the last two years, the city has endured multiple council recalls, turnover in management, and the firing of its former police chief.
Residents Voice Opinions
On September 25, city officials hosted a community forum to gauge public opinion. Residents were asked whether the city should contract out police services to cut costs or invest more to keep the local department.
Despite frustrations over money management, most residents supported keeping Gervais’ own police force. Concerns about outside contracts centered on cost and reliability.
“How much is this going to cost us, and how do we guarantee they will come?” one resident asked. Another questioned accountability: “Will the people who put us in the red be held responsible?”
Police Department at the Center
City Manager Rick Hohnbaum noted that police funding makes up the bulk of Gervais’ spending. Roughly 90% of the general fund is tied to police costs, a common pattern in small cities. For 2024–25, Gervais has budgeted about $1.1 million for police services, with 85% dedicated to personnel.
Currently, the department has just two patrol officers, one administrator, and an interim chief — short of the four patrol officers the city typically budgets for. With limited staff, officers patrol until about 1:30 a.m., leaving several overnight hours uncovered.
Interim Police Chief Dan O’Loughlin said the department faces another problem: officers are required to remain on-call during off hours without compensation. “They are doing that for the love of their community,” he said, “but they deserve better.”
Contracting as an Option
To cut costs, Gervais is exploring contracts with the Marion County Sheriff’s Office or the Mount Angel Police Department. Both proposals come in just under $1 million, comparable to the city’s current police budget.
But O’Loughlin warned that contracting would reduce service quality. Deputies would respond to calls but would not provide proactive policing such as traffic enforcement, school visits, or business check-ins.
“The best option is to keep your police department and staff,” O’Loughlin argued. “They want their own Gervais identity. They are invested here. Once you close down a department, restarting it is nearly impossible.”
Struggles and Needed Reforms
O’Loughlin presented a list of 14 improvements needed to bring the department up to industry standards. These included hiring qualified trainers, making complaint forms more accessible, tightening overtime oversight, and increasing proactive outreach in schools and neighborhoods.
He acknowledged the scars left by past leadership failures but said the department is moving in the right direction. “Gervais police is not perfect,” he said, “but they are improving. Reinvestment is the only viable path.”
Financial Realities
The city expects to collect about $1.6 million in general fund revenue this year, similar to last year, but far short of what’s needed to comfortably fund services. Compounding the challenge, Gervais collected $206,000 less in taxes and fines than expected in 2023–24.
With little savings, the city faces what officials call a “doom loop”: financial instability makes it harder to retain staff, and short staffing worsens instability.
“We need a stable long-term plan,” Hohnbaum said. “The question is, how much law enforcement does the community want, and how much are they willing to support it?”
Looking Ahead
Within the next 30 days, the city’s annual audit will be released. Afterward, Gervais must submit a recovery plan to the Oregon Secretary of State’s office outlining how it will address deficiencies.
Possible solutions include a levy or tax increase to bolster police funding, though no proposal has yet been introduced. Another option is trimming administrative spending, which ballooned well beyond projections.
Ultimately, the decision will rest on residents’ willingness to pay for the level of service they expect.
“We would need twice the population we currently have to afford 24/7 police coverage,” Hohnbaum said. “Everyone wants the best of both worlds, but stability means making choices.”
