Budget hearings were a lonely affair

Published 9:00 pm Tuesday, November 25, 2003

LAKE STEVENS — No residents commented after two public hearings on the city’s draft $6.7 million 2004 budget, which will go before the City Council Dec. 8 for a third reading and anticipated adoption.

The council conducted public hearings Nov. 10 and Monday, but the budget drew little attention, city finance director Jan Berg said Tuesday.

She described the budget as essentially a "status quo" and "bare-bones" budget. The $2.3 million operations budget is only $200,000 more than last year.

The owner of a $200,000 home paid $2 per $1,000 of assessed value this year, or $400. That will increase by 2 cents per thousand in 2004, to $404, Berg said.

The tax hike is allowed under the 1 percent property tax increase approved into law under Initiative 695. The 1 percent increase will be countered by an increase in some expenditures, Berg said.

However, the city’s general fund reserve fund was almost $1.38 million at the end of 2002 and is expected to be about $1.5 million at the end of this year. That is due in part to higher than anticipated sales tax revenues, cost savings from some projects and money saved on travel or other expenses.

The 2004 budget includes no new positions, but provides a 2 percent cost-of-living increase for city employees.

In other business, the council authorized city staff to call for bids on the Grade Road sewer extension project. The engineer’s estimate is $600,000 to $700,000 to install sewers that will serve 312 lots, including 120 new connections and a new lift station.

The project will complete sewer installation in the city except for the industrial area in the city’s northeast corner, which the city plans to address next year.

Reporter Cathy Logg: 425-339-3437 or logg@heraldnet.com.