Bend City Councilors approved the City’s $1.3 billion, two-year budget at Wednesday night’s council meeting.
In May, the Budget Committee, which is comprised of seven City Councilors and an equal number of community members, discussed and approved the proposed 2023-25 biennial budget in public meetings.
The Budget Committee included a few amendments that increased some key service areas:
- The Planning Fund increased by $400,000 to support code updates associated with legislative requirements.
- The Houseless Fund increased by $1 million to support administrative costs.
- The Affordable Housing Fund increased by $100,000 to support administrative costs; and
- The Police Department budget increased by $536,000 to support an additional patrol officer and an additional investigator.
The two-year budget’s operational revenues are $480.1 million. Of the $480.1 million of City-wide operating revenues, $136.1 million is in the City’s General Fund. The General Fund mostly consists of property taxes. Assessed property tax revenues are expected to increase 5% per year. Property taxes and the General Fund primarily fund police, fire and street maintenance services.
Water, sewer, stormwater (in the Utility Department) and the Community and Economic Development Department permit center operate more like businesses; fees associated with the services provided in those areas cover the cost of doing business.
The largest portion of the budget is from planned investments in infrastructure, including projects improving water, sewer, stormwater and transportation infrastructure. Personnel services expenses, which include salary and benefit costs for City employees, represent the second largest category of spending in the budget.
Property tax revenues are limited by state law, and Bend has one of the lowest property tax rates in the state. Because of legislatively cut-and-capped property tax growth, many jurisdictions in Oregon seek levies, bonds or other revenue sources to help fill funding gaps. In May, Bend voters approved an increase and renewal of the fire levy to maintain Bend Fire & Rescue staffing and response times.
The budget reflects funding increases that are needed to keep operations at current service levels. The City is strategically targeting specific fees for specific priority needs. Public safety, transportation and housing are consistent community priorities and there are a few revenue options that are in the City’s control that can help with those core service areas, including a fire levy, a possible transportation fee and permit fees in Community and Economic Development.
“We recognize that these are tough economic times for many people, and the City shares some of the same challenges of increasing, inflationary costs,” said Mayor Melanie Kebler. “While we are sensitive to these concerns, we also need to balance the needs and expectations of this fast-growing community.”
Documents are available at www.bendoregon.gov/budget. The City Manager’s budget message also provides a high-level overview of the budget.
