Issaquah approved its 2014 budget Nov. 18, with little fanfare and no public comment. Key factors include the first property tax increase in six years, 1 percent overall. The increase amounts to $3.83 annually on a home with an assessed valuation of $440,000.
The city’s cash reserves are estimated to remain at or near the current level, said finance director Diane Marcotte.
A local improvement district (No. 25), to cut a new road through from 221st Place S.E. to the retail area around Costco, will see more activity in 2014. City officials expect the road improvements to relieve traffic congestion in north Issaquah in an area bounded by East Lake Sammamish Parkway Southeast, Southeast 56th Street/Northwest Sammamish Road, 17th Avenue Northwest and Interstate 90.
The city is also committed to further implementation of Lean principles, designed to reduce waste and increase efficiency of an organization.
The budget also adds one new police officer and two new construction inspectors.
Council chairman and Mayor-elect Fred Butler said the council reviewed the budget based on categories rather then line items, as in the past.
“The council recognizes the administration’s efforts in responsibly managing the budget during these tough economic times,” Butler said. “Our deliberations resulted in adjustments that reflect the council’s priorities and a concern that as proposed, the 2014 general fund budget is not sustainable unless there are changes over the next few years.”
A $400,000 reduction in the general fund was made by reducing the LID guaranty fund, established to offset non-payment of LID fees, while the city hopes to generate $400,000 by increasing building and site permit fees (see related story below).
The budget anticipates an $137,000 increase in sales tax revenue, while decreasing funding for professional services for the development services department, legal services, dental premiums, shared services, a senior planner and a $25,225 decrease to street funding, which is mostly street sweeping.
Also, the construction of a public works operations shop facility in the Highlands will be delayed pending the outcome of the Klahanie annexation vote.
Butler said the council would like to explore options to update the city vision statement by the first quarter of 2014, identify possible funds for a reverse 911 system by the second quarter, evaluate financial stability in the first quarter and generate a report of the operations of Tibbetts Creek Manor in the third quarter.
Council member Tola Marts commended the group for conducting the entire budget process on camera, which was his idea.
“It’s not an easy thing to raise taxes,” Marts said. “We looked hard at decreases in expenditures and support fees rather than taxes.”
He said that in this way the users are paying, rather than spreading the cost out to the community as a whole.
The entire budget is online at ci.issaquah.wa.us/.
