July is a month of hot sunny days, vacations and the city budget. That's right, the city budget may be decided in the late spring but goes into effect each July 1st like clockwork. As we go through our days shopping, working and enjoying the amenities of the towns we live in, it is also good to take a moment to consider where our money is being invested. Why does the city budget matter and how does our voice get heard when it comes time to think about the budget each year? The city of North Bend worked in tangent with citizens to put together a budget that will keep the city solvent for one more year.
Something to consider before looking at the budget are the strict regulations that control how a city creates a budget and what they must include. Per the Oregon state government website, the Oregon Local Budget Laws are important to show standard procedures for preparing, presenting, and administering the budget. It also requires citizen involvement in the preparation of the budget and public disclosure of the budget before its formal adoption. The North Bend budget committee held an open forum on May 14 and 15 to discuss the 2025 budget. This meeting focused on how the city budget would decide where our taxes are spent locally whether funding our police or the mayor's office and all services in between.
What is the breakdown? North Bend is expecting an overall revenue of 47.9 million dollars with expenditures also to reach 47.9 million giving zero total less revenue expenditures. “This annual budgeting process is pivotal in aligning our resources with the pressing needs of our community,” states David Milliron, City Administrator for North Bend in his letter from June 18th. Milliron also goes on to emphasize the importance of searching for other revenue sources in the challenge of city budgets in today’s landscape, “Our foremost commitment remains unwavering: to sustain the vital municipal services upon which our residents rely daily – encompassing public safety, parks, libraries, streets, and wastewater utilities,” he said, “However, despite our steadfast commitment, traditional revenue sources like fees and taxes show limited growth. Thus, our challenge lies in upholding these essential services amidst escalating personnel, materials, and operational costs.”
These large numbers make it hard to understand the whole story, where does the money come from that helps fund the city and how are those funds distributed. To begin to understand the complexities of where the money is split you must begin with the city's mission, vision and values. Here the committee begins by breaking up the areas that are a priority to be financed into the categories of live, work and play. This helps highlight the areas of focus for the budget.
Within the live category are the goals for the continued maintenance of the city, including sustaining the police force and the current upgrades underway at the North Bend library. Personnel within these areas make up a large part in increasing the yearly budget. Fire, police, and street employees all work under a collective bargaining agreement (CBA) which sets their increases each year. For the 2025 budget each has a set cost of living increase of 3-5%. Each department has also worked hard to offset these increases by using grants to fund other needed areas. The fire department decreased its spending by $429,000 from the 2024 budget thanks to grants garnered in last year's budget with several continuing into this year. In the May budget meeting Police Chief Cal Mitts explained how much of their current fleet and upgrades to equipment such as the new license plate readers, were garnered through state grants which will help offset the costs of personnel that have increased by 23% from the last year. The North Bend Library continues to focus on their current renovation project. The increase to the budget of $360,000 stems from the existing working capital that has been set aside for these current renovations.
The focus within the work category is to determine long term funding for the city along with projects such as the County Annex workforce housing project and to perform a Sewer Rate Study which will present options to increase fees to sustain the aging infrastructure. Aaron Bixler, the North Bend Parks and Facilities Director, explained in the May meeting that public works and streets are staying even with last year's costs thanks to an adjustment of funds with other areas within the budget. The Pony Clough paving project estimated at $350,000 is included within this year's budget. Utilities are going to see an increase of $50,000 with expected rate increases. Offset by sewer expenditures that will see a decrease of $275,000 in the coming year.
Tourism is an important draw for the city to help sustain the budget and within the play category are ways to make sure the city continues to draw people into a “welcoming and vibrant place” to visit. Though maintenance within the parks has increased by $25,000 this year, the city pool levy will enable the city to make $100,000 over the next year's budget. Without the levy it would have meant a $300,000 deficit. This year will also see the completion of the new North Bend Visitor Center adding a $260,000 inclusion to the budget.
These are only a handful of costs that will be covered by incoming revenue. A property tax increase of $167, 313 will see $4.6 million dollars of property taxes estimated over the next year. Revenues in the city stem from working capital, but also from other avenues such as fines and fees, donations, and other revenues.
If you want to know more about where your tax dollars are going within the budget, have questions about the budget or want to be involved in next year's planning of the budget you can access everything on the city website www.northbendoregon.us.
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