NORTH BEND – The city of North Bend is planning on running a little slimmer next year, but still plans on getting a lot of work done on its streets and its water rights problem.

Last month, the mayor submitted his proposed budget for 2005, which has the city spending $14.76 million. Of that total, $4.43 million will go to general fund expenditures, which fund the day-to-day business of the city. The overall budget is $2 million less than this year’s budget of $16 million, and the general fund is $49,116 less than 2004 as well.

“When it comes to the general fund, we have little discretionary money to spend,” said Mayor Ken Hearing in a memo that prefaced his proposed budget.

The biggest chunk of North Bend’s budget will go, to police and fire services, which account for 45 percent of the general fund budget. Hearing had initially proposed a budget cut to police overtime from $50,000 to $25,000. After discussion, that number was brought back up to $40,000.

Another fund that got cut was the city’s overlay fund that pays for street repair, which was reduced from $100,000 to $50,000. City staff looked for additional funds for those projects, however, so the city actually plans on spending $100,000 in 2005 on street overlay projects.

North Bend plans to work on $680,592 worth of street projects, more than half of which will be funded by state grants. Those projects include the replacement of the Eighth Street Bridge, which is completely funded by federal and state grants, and the construction of a park and ride next to the South Fork Bridge on North Bend Way, which will be paid for by federal and county grants.

Work will also commence on the intersection of Cedar Falls Road and North Bend Way. There have been many different ideas at the city on whether to put in a traffic light or a roundabout to deal with the traffic problem. Hearing said he expects the discussion regarding that intersection to be “spirited.”

The city’s water utility rates will increase to pay for projects meant to get the city out of its building moratorium, which it has been under since 1999 due to a lack of water rights from the state. The city hopes to secure water rights next year as a result of pumping water from the Snoqualmie River watershed. Although the city’s water rates will go up, the city’s storm draining and flood utility rates will remain the same.

North Bend staffing will remain about the same. Since 2001, the city has employed anywhere between 31.5 to 33 full-time equivalent positions (FTE). Next year, the city will budget for 33 FTE employees, which is up slightly from this year’s 32.5.

The City Council was proud to point out that the budget also includes an increase in funding for community services. By the end of this year, the city plans to spend $74,880 on human services, which include donations to Valley-based programs such as Children’s Services of Sno-Valley. Next year, the city wants to increase that fund to $77,315 and include organizations such as Hopelink and Eastside Domestic Violence.

“That [community giving] has always been a high priority for the council,” said city finance director Elena Montgomery.

North Bend will also be keeping $398,000 in its general fund reserve in case of a downturn in the economy, which would affect the city’s retail tax base.

In addition the city is considering a 1-percent increase in property taxes, which is the highest percentage any city in Washington can legally raise taxes yearly. Montgomery pointed out at the council’s Nov. 1 meeting that even with the 1-

percent raise, which would raise the property tax levy in the city to $1.6437 per $1,000 of assessed valuation from $1.6404, North Bend would still have one of the lowest property tax burdens in the area. This year, Snoqualmie’s property tax rate is $2.67, while Duvall’s is $2.59 and Carnation’s is $2.91 (the later two include regular levy plus fire service). Those in unincorporated King County are taxed $2.55. The only nearby community with a lower property tax rate is Issaquah, which collects property taxes at a rate of $1.63.

For a $250,000 home, Montgomery calculated that the raise would pencil out to an annual increase of $8.

Councilman Dave Cook said he could not support the tax increase, however, given the nature of the economy and the need to watch city spending. Cook said that no matter how low a property tax is, the high rate of real-estate appreciation in the city makes any property tax a financial burden.

“Just because we can raise property taxes does not mean we should,” Cook said.

Councilwoman Karen Tavenner said the 1-percent raise is warranted given the rise in the cost of city services, which have gone up anywhere from 3-7 percent over last year. Hearing added that the 1-percent raise doesn’t even keep up with the rate of inflation.

The 1-percent raise passed its first reading with a 4-1 vote. Cook voted against it.

* North Bend will be hearing public testimony regarding its 2005 budget at the next City Council meeting at 7:30 p.m. on Tuesday, Nov. 16, at the Mount Si Senior Center, 411 Main Ave. S., North Bend. Call (425) 888-1211 for information.

Editor Ben Cape can be reached at (425) 888-2311 or by e-mail at ben.cape@valleyrecord.com