North Bend City Council Meeting - October 20, 2026

The City Council met on October 20, 2026, to conduct several public hearings on the 2027-2028 biennial budget, property tax levy, criminal justice tax, and the water system plan, along with receiving committee reports and public testimony. All consent agenda items were approved unanimously.

Consent Calendar

• Minutes: Approved minutes from the October 6, 2026 City Council meeting and September 22, 2026 Workstudy.
• Payroll: Approved payroll for October 5, 2026 (checks 79576-79581) totaling $415,480.05.
• Checks: Approved checks for October 20, 2026 (checks 79582-79654) totaling $3,495,957.58.
• Resolution AB26-093: Accepting the 5th, 6th & Main Improvements Project.
• Motion AB26-094: Authorizing the PSE Schedule 74 Agreement for the North Bend Way/NW 8th Street Roundabout Project.

Public Comments & Testimony

• Julia Dresh (owner of Jurege International LLC, a licensed cannabis retailer) expressed interest in opening a cannabis retail store in North Bend at the Mount Side Tavern site. She stated the site meets all Washington state buffer requirements and requested the city's support for a development agreement. Dresh noted the city previously issued her a development agreement that fell through and highlighted potential local jobs, increased foot traffic, and excise tax revenue as benefits. No other public comments were made.

Discussion Items

Commission & Committee Reports

• Transportation & Public Works (TPW): Councilmember Colin reported the committee discussed a bill of sale for Gravity Marine, Middle Fork DEA, project closeout for 5th/6th/Main improvements, PSE Schedule 74 and 51 agreements for 2026 sidewalk gaps, a water comp plan public hearing, and the South Fork Lift Station pre-design report.
• Public Health & Safety: Canceled; an e-bike/e-motorcycle town hall was held on October 6.
• Community & Economic Development (CED): Councilmember Dawson reported the committee discussed a lot splitting driveway exemption, 2026 comprehensive plan amendments, parking regulations, an OTEC on-call contract renewal, and positive economic development activity.
• Finance: Councilmember Rustic reported the committee reviewed items on tonight's agenda (biennial budget, property tax levy, criminal justice tax) plus an August 2026 budget status report and human services/cultural arts grant policy.
• City Commissions: James Henderson reported the Planning Commission will meet November 4 on housing affordability code amendments; the Parks Commission will meet October 28 on the Bike North Bend plan; the Economic Development Commission discussed the Creative Economy Action Plan, Project Belay, and workforce housing options.
• Regional Committees:
  • East Side Fire & Rescue (ESFR): The board approved a modified 2027-2028 budget with a 11.86% increase for North Bend in 2027 and 13.48% in 2028, capped overtime at $5 million, and required an independent review of tools and processes.
  • Sound Cities Association (SCA) Public Issues Committee: Councilmember Rustic attended a presentation on King County elections and discussions on affordable housing, transit safety, and the 2027 legislative agenda.

2027-2028 Biennial Budget (AB26-095)

• Presentation: Finance Director Martin Chaw presented the proposed $179.0 million biennial budget (down from $221.1 million in 2025-2026 due to CIP timing). The general fund is budgeted at $33.5 million with no new FTEs in the general fund; three additional FTEs (water field worker, stormwater engineer, economic development marketing manager) are outside the general fund and funded by other sources.
• Key Challenges: Public safety costs (police and fire) are projected to rise from $5.3 million in 2026 to $7.9 million in 2028, a $2.6 million increase. General fund reserves are forecast to decline from $5 million in 2026 to $656,000 in 2028, below the policy target of $2.39 million.
• Proposed Solutions: Imposing a 0.1% criminal justice sales tax ($330,000/year), creating a regional fire authority (RFA) with Eastside Fire & Rescue and Fire District 38, or a property tax levy lid lift (estimated 73 cents per $1,000 assessed value, about $67/month for a $1.1 million home). A combination of a levy lift and the sales tax could restore reserves to ~$3.4 million.
• Budget Priorities: Sustainable public safety funding, $144.1 million six-year CIP (62% grant-funded), economic development (including Wyndham Hotel, Panatoni industrial park, Cascade Gateway truck stop, Project Belay), and sustainable human services (2% of general fund) and cultural arts (0.4%) funding.
• Public Hearing: Opened and continued to the December 1, 2026 meeting. Motion to continue passed unanimously.

2027 Property Tax Levy (AB26-096)

• Presentation: The annual ordinance sets the 2027 property tax levy at $0.79 per $1,000 assessed value (regular levy) plus a $0.01 excess levy for fire station 87 bonds (final year). The 1% increase generates approximately $30,000. For a $1.1 million home, the city share is about $880/year (9% of total property tax bill).
• Public Hearing: Opened and continued to the November 17, 2026 meeting. Motion to continue passed unanimously.

Criminal Justice Tax (AB26-097)

• Presentation: Ordinance establishes a 0.1% sales tax (dime on $100 purchase) to fund criminal justice purposes. Estimated annual revenue of $330,000, partially offsetting rising police costs (from $2.8 million in 2025 to $5.1 million in 2028). If approved, the city’ssales tax rate would rise from 1.4% to1.5%, total citywide from 9.2% to 9.3%. Thetax can be adopted by council vote until June 30, 2028; after that, a public vote is required. King County has already imposed its own 0.1% and cannot add further under current law.
• Public Hearing: Opened and continued to the November 3, 2026 meeting. Motion to continue passed unanimously.

2026 Water System Plan (AB26-098)

• Presentation: Don DeBerg presented the updated water system plan, approved by the state for a five-year period. Key changes include removal of the National Guard parcel from the water service area (developer chose Salal Water), addition of Salal interties, climate change analysis, updated growth projections confirming adequate water rights through 20 years, and updated water system model with CIP adjustments. The plan was reviewed by DOH, Ecology, and King County, with comments addressed. Comments from the Snoqualmie and Tulalip Tribes requested updates to the mitigation algorithm and operations/monitoring plan; the city is working on that and will amend the plan later. Public involvement included a hearing.
• Public Hearing: Opened and closed. Ordinance adopted unanimously as first and final reading.

Mayor, Council & Administrator Concerns

• Councilmember Colin reminded residents about increased wildlife activity (deer, elk) as nights darken.
• Councilmember Rustic encouraged voting by November 3, noting ballot drop boxes at North Bend Library and registration deadlines.
• Councilmember Jocelyn thanked Finance Director Chaw for his work on the budget.
• Councilmember McFarland urged voting and expressed concern about election security and threats to democracy.
• City Administrator Emory announced upcoming budget work sessions (October 27, November 17, December 1) and the launch of a new permitting system (Cloud Permits) on October 19.
• Mayor Pro Tem Tremulana announced Trick or Treat Street on October 24, the Sideview Harvest Festival, and Police Chief Ed Hall’s library visit on October 27. He also commented on the recent school shooting in Bend, Oregon, calling for nonpartisan action.
• The council then moved into executive session to discuss potential litigation (RCW 42.30.110(1)(i)) for up to 15 minutes.

Key Outcomes

• All consent agenda items approved unanimously.
• All four public hearings (budget, property tax levy, criminal justice tax, water system plan) were opened; the water system plan was adopted as final; the other three were continued to future meetings (November 3, November 17, and December 1, 2026).
• All motions carried unanimously.
• A new water plan was adopted, and progress was made toward addressing general fund shortfalls through proposed revenue measures.