Higher utility rates, tax changes in Stanwood budget plan

STANWOOD — Proposed city budgets for the next two years include utility rate increases, tax changes and millions of dollars for street repairs, water and sewer projects and the relocation or elevation of City Hall.

The city council is scheduled to vote on the budgets for 2015 and 2016 Dec. 11. People can share suggestions or concerns during a public hearing at 7 p.m. Monday in the Stanwood-Camano School District Administration Building, 26920 Pioneer Highway.

The preliminary budgets factor in higher utility rates, up 5 percent for water and 3.5 percent for sewer. The rate hikes continue a series of increases approved in 2011 and 2013. The 2015 increase takes effect Jan. 1 and amounts to about $2.40 more a month on the average Stanwood utility bill.

Property owners also can expect to see an increase in taxes starting in 2016, when the city is annexed into the Sno-Isle Library District.

In November, Stanwood voters decided to join the library district, with 1,504 yes votes out of 1,835 ballots. Once annexation takes effect on Jan. 1, 2016, Sno-Isle can levy up to 50 cents per $1,000 assessed property value in Stanwood. Meanwhile, the city’s share of property taxes — currently $3.21 per $1,000 assessed value — will be capped at $3.10 per $1,000. Overall, property owners are expected to see a net tax increase of 39 cents per $1,000, or about $97.50 on a $250,000 home.

The city has been paying Sno-Isle an annual fee to operate the library. Stanwood’s final payment is budgeted at $316,000 for 2015. Officials expect to save nearly that much in 2016, the first year without a library contract. The proposed budget allocates $172,000 of the savings to street maintenance.

“That finally makes our street fund sustainable,” city administrator Deborah Knight said.

The remaining library savings are designated to help cover the rising cost of police services.

Though Stanwood won’t pay a fee for its library anymore, the city continues to contract with the county for police and fire. It cost the city about $1.5 million this year for police and about $1.3 million for fire and emergency medical services.

The contract fees and other public services are covered by the city’s general fund, which is expected to increase from $5.67 million in 2014 to $5.87 million in 2015. The city is budgeting a drop to $5.4 million in 2016, when library savings are moved to the street fund.

The general fund is part of an overall $15.9 million proposed city budget for 2015 and an $18.4 million budget for 2016.

Over the next two years, the proposals set aside about $350,000 for street and sidewalk repairs, $125,000 for new restrooms and a shelter at Church Creek Park, $70,000 to create public access to the Stillaguamish River and $769,000 for bicycle and pedestrian paths, including safe routes to schools.

City leaders also have earmarked funds to either elevate or relocate city hall. The facility’s location in a floodplain has become a problem for planned renovations, and would likely make the building inaccessible in the event of a flood, Knight said. If a state grant comes through, officials intend to elevate the building for $750,000 and proceed with a renovation. A separate $500,000 is set aside in the budget for efforts to find a new city hall site outside of the floodplain. The council will decide exactly how much is spent and when, Knight said.

The city has not yet finalized salaries and benefits for all employees, she said, but the budget anticipates a 1.8 percent cost-of-living increase. No new positions are included in the 2015 or 2016 budget.

Kari Bray: 425-339-3439; kbray@heraldnet.com.

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