In releasing his proposed 2006 budget yesterday, Seattle Mayor Greg Nickels relished a rare find for city government in recent years: extra money.

Thanks to the improving economy, the city now expects to collect $55 million more than analysts had predicted in sales, business and real-estate taxes by the end of next year.

Nickels wants to spend the windfall hiring police and firefighters, constructing new sidewalks and paving streets, funding a hygiene center for the homeless and offering a minor tax break for small businesses.

"All around the city you can feel a sense of confidence growing — new jobs, new homes, new parks and new opportunities," Nickels said in an upbeat speech to the City Council, which must vote on a budget by Dec. 2.

The election-year speech stood in contrast to some recent years, when Nickels' budget addresses were sure to be followed by announcements of layoffs and howls of protests over cuts to library hours, social services and even the Police Department.

Next year, Nickels proposes increasing the city payroll by more than 200 employees, including 25 additional police officers and 15 firefighters. Some of the other hires would not be entirely new, but just the conversion of some city temporary workers to permanent status, said Dwight Dively, the city finance director.

There were no major surprises in Nickels' proposal, since most of the spending plans had been previously announced by his office. The budget proposal outlined yesterday is technically just a revision of the 2005-06 biennial budget approved last year.

Information

Mayor Greg Nickels' 2006 budget proposal can be viewed at: www.cityofseattle.net/financedepartment/

In addition to hiring new police officers, Nickels wants to spend $1 million to continue installing video cameras in police cars and $1.5 million to replace handheld ticketing devices used by parking-enforcement officers.

The mayor also proposed spending more than $8 million on paving more streets, building sidewalks and painting bridges.

Nickels offered a tax break for small businesses, proposing to raise to $75,000 the threshold they can earn before paying the city's business and occupation (B&O) tax. Businesses currently pay on income above $50,000 a year.

Overall, Nickels proposed increasing the city's general-fund budget next year to $760 million, up from $717 million this year. The total city budget will reach $2.9 billion when the Seattle Public Utilities and City Light budgets are included.

City Council President Jan Drago had no immediate objections to the mayor's budget proposal.

"I would say it's a good-news budget," she said.

Nickels has sometimes lectured the council during budget speeches, but his tone yesterday was friendlier, and he acknowledged several council members by name.

But in a reflection of continuing tensions at City Hall, Drago forced the mayor to wait briefly behind her before delivering his speech, while she delivered her own budget admonition.

"We hope you have anticipated our interests," Drago said, warning the council "won't tolerate" a budget that cuts services to the poor.

Nickels' proposal included extra money for some social services, including $1 million to fund operations of a downtown hygiene center for the homeless and nearly $300,000 in gang-prevention and other youth programs aimed at the South Park neighborhood.

Jim Brunner: 206-515-5628 or jbrunner@seattletimes.com