Tanner Annex helps shore up North Bend’s budget
January 6, 2010
By Dan Catchpole
Economic recession pushes down tax revenue but Tanner Annex brings new sources
NEW — 12:53 p.m. Jan. 6, 2010
North Bend’s Tanner Annex is already helping the city, which it joined this year. The additional tax revenue from the addition is offsetting a decrease in tax revenue, which had threatened to create a budget shortfall.
The economic recession depressed the city’s tax revenue, but the trend has flattened out, according to city officials.
“Had we not had some additional revenue from the Tanner Annex, we would be in more of a shortfall position,” city financial director Elena Montgomery said.
It isn’t clear if the two will balance each other out, she said. The city could still face a shortfall, but the difference—if any—has been lessened by the Tanner Annex.
Tax revenue from the area should also increase as the economy recovers, Montgomery noted.
The sales tax, collected largely from the Factory Stores outlet mall, is down about eight percent from the previous year, according to city officials. It is the single biggest source of money for the city’s general operating fund, which covers day-to-day expenses.
Money from the real estate excise tax—a tax on sales of real estate—is down as well. This money goes to support the city’s capital projects fund.
Montgomery said the city is taking a conservative approach in 2010, and is not involved in many construction projects. There is one exception — a new sewer line that runs out towards Interstate 90’s Exit 34.
The $14 million project has been a long time coming, and city won’t have any problem paying for it, according to city officials.
The total budget for 2010 is just under $31.5 million. Accounting for the sewer line project, the actual cost of running North Bend is around $17.5 million.
Dan Catchpole: 392-6434, ext. 246, or editor@snovalleystar.com.
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