Mercer Island council approves balanced budget of $35.3 million

By Karen Gaudette
Seattle Times Eastside bureau

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A 1 percent property-tax increase, the elimination of several jobs in the parks and police departments and spending reductions throughout City Hall added up to a balanced $35.3 million biennial budget for Mercer Island.

The City Council approved the 2005-06 general-fund budget Monday night with little ado, following weeks of study and debate regarding how to eliminate an anticipated $1 million deficit due to shrinking tax revenues and rising employee-benefit costs.

The total is about $2 million less than the previous biennial budget. Savings came from various sources, including eliminating the Police Department's financial investigator and outsourcing dispatch services, cutting several seasonal jobs in parks and recreation and paring employee travel and training spending.

The general fund draws most of its revenue from service charges for water and sewer and from property taxes. The fund pays for expenses ranging from police and fire services to parks and street maintenance.

The property-tax increase will net about $81,000 next year and will cost an additional $7 per year for the owner of a $500,000 house, the average price of an island home, according to City Manager Rich Conrad. By law, the council must vote again next fall if it chooses to raise property taxes again in 2006.

Karen Gaudette: 206-515-5618 or kgaudette@seattletimes.com

Copyright © 2004 The Seattle Times Company

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