The Bellevue City Council held its first public hearing on the 2011-2012 budget Monday, with the recent national recession still taking a toll on city revenues.
The city anticipates a deficit of $8 million to $10 million for the operating budget.
The council is scheduled to hold another public hearing on the budget July 19, and will consider staff recommendations for closing the budget gap on Sept. 27.
A final public hearing will take place Nov. 15, followed by the adoption of a budget on Dec. 6.
The council is working simultaneously to develop a new seven-year capital investment program, and is likely to scale back after falling roughly $90 million short on the previous plan.
Bellevue Chamber of Commerce representative Cameron Kelly spoke at Monday’s hearing, urging the council to balance the budget with existing revenues rather than raising taxes on the business community or residents.
“We want Bellevue to continue to have a business-tax structure that encourages the attraction and retention of a talented workforce, as well as innovative companies,” he said. “New taxes would be damaging to companies which struggle to remain open and retain employees in these challenging times.”
The council voted 4-3 last December to reject a 3-percent property-tax increase that would have cost the average homeowner an extra $17 annually to pay for traffic and infrastructure improvements.
Councilmember Grant Degginger says those projects can help spur development, which is still lagging in the wake of the recession. The rate of decline has slowed in other areas like retail sales and real estate.
Degginger voted in favor of the failed property-tax increase last year, but he has not said what measures he would support this year to close the budget gap and reduce capital costs.
“We’re still gathering information and listening to staff and the community,” he said. “We realize we will have to make some hard choices.”
Degginger met with federal officials on Wednesday to talk about potential funding to support transit-oriented development along the Bel-Red corridor, where light rail is slated to run.
Councilmember Kevin Wallace, who voted against the tax measure last year, said he’s isn’t ready to rule anything out in terms of deficit reducing.
“At this point, we need to take a holistic look at the budget and make sure we’re scrubbing it as hard as we can,” he said. “I like to believe we can solve the budget problems without raising taxes, but we haven’t gotten far enough into the process to understand all the nuances.”
Patrick Bannon, speaking on behalf of the Bellevue Downtown Association, said the city should invest in and maintain its infrastructure, as well as public safety.
Hopelink representative Mike Nesteroff spoke as well on Monday, urging the city to continue its support of human-services programs.
Bellevue gave Hopelink $220,000 in 2009.
“That money has gone to address the crucial needs in this community – food banks, emergency financial assistance, adult education, case management, homeless housing, employment services, and transportation,” Nesteroff said.
Hopelink saw a rise in need during 2009, with 62 percent more households seeking energy assistance, and 16,000 individuals – a 24 percent increase – receiving food, according to Nesteroff.
Eastside Domestic Violence Program president David Osmer encouraged the city to continue its support of human services as well, noting that his organization denied shelter to 887 homeless families in 2009 due to lack of resources.
Bellevue gave $170,000 to the program last year.
