North Bend council authorizes filing five ballot titles to address roughly $1 million budget gap

The North Bend City Council on Feb. 25 voted to direct staff to file ballot titles for five measures aimed at addressing a roughly $1 million shortfall in the city’s general fund.

City Administrator Ralph told the council that the city faces “a million dollar budget gap” as property tax limits, a restrictive city charter and recent rejections of proposed funding tools have constrained local revenue. The council approved a motion to have staff prepare ballot titles for: a charter amendment, a wastewater (sewer) fee increase, a police-directed fee (renaming/recasting the current public safety fee), a parks and recreation fee and a dog park fee. The motion passed by voice vote after a motion from Councilor Hamilton and a second from Councilor Schultz.

The charter amendment being proposed would change the current threshold for fee increases so that measures are decided by a majority of voters at an election rather than by a majority of the entire electorate, an adjustment council members said would make it easier to pass future revenue measures. City staff and councilors discussed the history of the charter provisions and prior local measures, noting turnout and vote-share dynamics that make the current standard difficult to meet.

Finance staff presented estimates for a possible increase to the existing public safety fee, which is currently $15 a month on utility bills. The finance director said a $5 monthly increase would be expected to raise roughly $285,000; a $10 increase about $578,000; and a $15 increase about $864,000. The finance director also noted that a much larger increase — for example, raising the fee to $75 per month — would largely cover existing public-safety costs but called that an illustrative figure rather than a proposal the council had finalized.

Council discussion zeroed in on making any public-safety ask more specific and accountable. Several council members and the police chief said voters respond to clearly defined uses of funds. The police chief asked the council to consider funding that would allow the department to participate more fully in narcotics enforcement and to preserve grant-funded positions the city currently relies on; he characterized a dedicated police-directed fee as more tangible for voters than a general public-safety label.

City staff also briefed the council on other fiscal pressures: sewer rate increases proposed to voters in November were rejected and staff said the sewer fund could be at risk of insolvency in roughly four years without new revenue; an urban renewal financing request was denied by the county-level board, a decision staff said could put about $4 million in grants and roughly $1 million in additional funding at risk. The parks department’s master plan identifies about $2 million in near-term needs to bring facilities up to current safety and insurance standards, staff said.

Councilors emphasized that filing ballot titles this week would preserve options: the city must file titles by the approaching Friday deadline, then could refine language and decide which measures to move forward after further work sessions. Council members repeatedly framed the process as both seeking voter guidance and demonstrating to state officials that the city has exhausted local options before seeking external help.

The council also approved routine business at the meeting, including accepting the consent calendar and appointing Joseph Monahan and Mary Jo Golden to the North Bend Budget Committee. Those votes were voice votes recorded as "aye" with no roll-call tallies given on the record.