News - Local News

POSTED: Monday, Oct. 19, 2009

Bellingham mayor to propose tax increase, tapping reserves

BELLINGHAM - Mayor Dan Pike's administration is proposing City Council members agree to a tax increase and dip into various reserve funds to balance the 2010 budget.

The mayor's administration will ask council members to approve a state-allowed 1 percent property tax increase due to the tough economic times in which the city will have cut $28.3 million from its budget in 2009 and 2010.

The increase would be about $6 a year for the average homeowner, Pike said.

The $187.8 million budget proposal will be less than 2006 levels, when the city adopted a budget of more than $193 million.

Details of the 2010 budget won't be made public until 1 p.m. Monday, Oct. 19. The city has a shortfall of about $7.9 million next year for the entire budget, which includes the general fund that pays for most services residents see, like police, fire, parks maintenance and library.

Residents have seen reduced services as library hours have been trimmed, park programs are being restricted and employees have been laid off. Departments have cut $7.23 million from their budgets this year, not including capital projects.

Pike said he's recommending taking the 1 percent property tax increase because the city is trying to maintain a "critical capacity" in terms of goods and services the government provides and has heard from residents they'd like to maintain.

The increase will bring in about $180,655 for the general, fire pension and Greenways III funds. The council is scheduled to vote on the tax increase on Nov. 9, according to agenda documents.

The mayor in 2008 was successful in convincing City Council members to decline taking the 1 percent increase, arguing then that the recession was hitting the pocketbooks of residents. Now, Pike said the city must take the increase.

"Last year I said that not taking it didn't mean that I wouldn't take it in the future," he said. "But I felt it was important to not take it last year to show that we could survive without it, which we could."

Refusing the increase this year, Pike said, would mean a loss of more city services for a short-term gain.

Finance Director John Carter said the city will again delay capital improvement projects in 2010, and those cuts will be a "big chunk" of reductions.

The general fund has a $1.85 million shortfall, so the administration would like to tap reserves, Carter said.

Last year, the City Council approved a $216.1 million budget that the city would later drastically cut due to the recession.

IF YOU GO

WHAT: Bellingham City Council members will hear a presentation from Mayor Dan Pike on his 2010 budget proposal and will have a public hearing on projected revenues for next year.

WHEN: 7 p.m. Monday, Oct. 19.

WHERE: City Council chambers, City Hall, 210 Lottie St.

HAVE YOUR SAY: Contact City Council members at council@cob.org or call 778-8200.