Committee reviews $16.1M mid‑biennial amendment tied to end of North Bend police ILA and other adjustments

The Finance & Administration Committee reviewed a mid‑biennial budget amendment that staff said would reduce citywide appropriations by $16.1 million and revenues by $19.8 million and then forwarded the amendment to full council for further consideration and financial forecasting.

Budget manager Jana Walker told the committee the amendment’s largest component — roughly $7.75 million in reduced appropriation — is tied to the North Bend Police Services interlocal agreement (ILA) ending and the transfer of certain costs and equipment. Walker explained the North Bend fund is expected to drop to zero by March 31, 2026, and the amendment includes a proposed $240,000 payment and transfer of four vehicles to North Bend for equipment replacement and repair.

Walker and city staff said the end of the ILA requires multiple changes to internal service allocations, staff‑funding mixes and the police staffing table. The amendment package includes a net reduction of about 17 full‑time equivalents (FTEs) relative to the adopted budget, primarily reflecting the removal of positions tied to North Bend and a simultaneous plan to fund 18 Snoqualmie police FTEs (up from 16.65 in the adopted budget).

Staff also described several cost pressures and one‑time needs folded into the amendment: rising liability and property insurance (staff cited multi‑year increases), workers’ compensation increases (public safety up about 52% over three years), anticipated outside‑counsel legal costs tied to litigation and public records requests, a one‑time AED replacement, and operating and one‑time costs tied to the new splash pad (staff estimated roughly $25,000 ongoing annual cost including water use).

Public defender contract costs were projected to rise sharply in 2026 (to about $160,000 from roughly $99,290 budgeted in 2025), a change staff attributed to a June Supreme Court ruling that affects caseload standards; the city expects a state mechanism (public safety sales tax offsets) could mitigate those costs in the future.

Walker said the amendment also trues up utility funds to a recently adopted rate study, adjusts timing for projects (for example, moving Sandy Cove bank stabilization from 2025 to 2026), and reflects a decision not to issue a bond this year alongside an increase in Ecology loan activity. The amendment includes a proposal to transfer nonutility utility fee balances back to utility funds so they are available for utility capital projects.

Committee members pressed for a fund‑by‑fund reconciliation and identified a roughly $4 million delta between some revenue and expenditure tables; staff committed to providing more detailed reconciliations at the council work session. The committee moved the amendment forward for council discussion and a budget work session.