City of Bend’s proposed 2023-25 budget nearly $1.3 billion, but with plenty of unanswered questions

Fee hikes inevitable, but how quick under discussion; transportation fee also planned to keep up roads

BEND, Ore. (KTVZ) – Many households would have a lot of head-scratching to do if right now they had to budget revenue and expenses for the next couple of years. That uncertainty is echoed in the city of Bend’s proposed $1.29 billion 2023-25 budget released Wednesday evening, other than rising costs – and the need for higher fees to cover them.

In his annual budget message -- a bigger deal every other year, when the new biennium begins -- City Manager Eric King said the proposed budget “reflects revenue pressures associated with modest revenue growth forecasts and headwinds associated with a potentially slowing economy.”

“Coupled with pressures on expenses, there is an imbalance of money coming in versus money going out across most funds,” King added, pointing to the city’s low property tax rate of $2.80 per $1,000 of taxable assessed value, and statewide property tax limitation measures that restrict the city’s ability to raise that rate.

Lots of projects are underway or on the drawing board, but with costs rising, so are proposed sewer, water and stormwater fees. A new transportation fee is under consideration, and building fees could rise 10-30%, though the city is deep in talks with stakeholders who want them phased in, and are opposed to a hike in the long-range planning fee. The city says those increases are needed to support adequate staffing for permit turnaround times.

King also said the proposed “Streets & Operations budget reflects revenues from a new transportation fee or other revenue source, which is needed to maintain current levels of service.” More discussion with councilors is coming on that.

Funding for the new homeless shelters is another area of uncertainty, as King noted there are no city General Fund revenues available for that purpose, so state and federal funding are key.

Below is the city manager's budget message - the rest of the proposed budget can be found here, on the city's budget page: https://www.bendoregon.gov/government/departments/finance/financial-reports#BudgetReports