With the clock running out for the city to lock down its 2015-16 budget, Bellevue Deputy Mayor Kevin Wallace on Monday provided a revised financial plan that would allow the council once again to avoid a property tax increase. While councilmembers are hopeful, development company Wright Runstad is livid.
Wallace provided the council with his revised budget plan, which proposes to do away with City Manager Brad Miyake’s budgeted 5-percent property tax increase and $85 million in long-term debt.
This would be made possible largely by delaying the $60 million in long-term debt financing it is estimated to take to construct the first segment of the Northeast Spring Boulevard project from Wright Runstad’s Spring District at Northeast 12th Street to 120th Avenue Northeast. It also pulls out $25 million for a 2015 levy lift debt issuance. The budget does still fund design costs for Spring Boulevard.
Betty Spieth-Croll, public affairs consultant for Wright Runstad, said during Monday’s budget public hearing the development company supports the city manager’s budget proposal. Any “backpedaling” of the project, she said, will send the the wrong message to prospective investors.
“… It undermines the city’s credibility and competitiveness for grant funding in the future,” she added.
Wright Runstad and partners have already begun Phase 1 of office and residential development in the Spring District.
During the earlier study session Monday, Wallace said delaying the Spring Boulevard project also would allow the city to continue negotiations with Sound Transit regarding a revised memorandum of understanding for its East Link light rail obligations.
Wallace told the Reporter on Tuesday the city is trying to reach an agreement that addresses changes by Sound Transit in light rail alignment and the siting of its operations and maintenance satellite facility at the BNSF site in Bellevue, near the Spring District and future 120th Avenue Northeast station.
The benefit of not adding long-term debt, Wallace said, will be freeing up funds for more community partnership projects. KidsQuest is seeking funding for its new downtown children’s museum and the Boys and Girls Club of Bellevue also is seeking a public-private partnership with the city for a new downtown club and community center. The Salvation Army wants to construct a new facility in the Crossroads to address low-income and homeless families.
“It just completely overwhelms the whole budget if you keep it in there,” Wallace told the Reporter of the long-term debt option for Spring Boulevard. The rest of the council agreed Wallace’s revised budget was worth exploration, as long as it did not prevent any critical projects from being completed. Staff will bring back its analysis of the alternate plan on Nov. 24. The council plans to adopt the 2015-16 budget in early December.
Councilmember John Stokes said the city soon will be called on to continue its collaborative work with the Performing Arts Center Eastside for the Tateuchi Center through funding support. He added it remains uncertain what substantial change, if any, in obligations may occur during Sound Transit negotiations.
Wallace’s revised budget commits $1 million a year for seven years as a council contingency for such a partnership. Wallace said there are still too many unknowns tied to the performing arts center and a sizable commitment at this time would require an increase in property taxes. If Wallace’s budget is approved, this would be the sixth year the council has not raised the property tax.
The deputy mayor’s budget also proposes removing funding to expand the east parking garage at City Hall to replace spaces in the visitor and public safety garages when light rail comes through it. The council approved a contract with SRG Partnership Inc. for up to $573,970 for design and engineering services for the expansion last December. Wallace said with Sound Transit causing the interruption in City Hall parking, the expectation will be that the transit agency will cover the parking expansion once an agreement is reached.
