City of North Bend release - NORTH BEND, Ore. — North Bend Mayor Jessica Engelke used her annual State of the City address to highlight property tax relief, major grant funding and recent investments in public safety, infrastructure and city operations — while warning that rising costs could outpace restricted revenues in the years ahead.  Engelke delivered the address at the Bay Area Chamber of Commerce’s Wednesday Business Connection, framing the city’s priorities around “a safe, thriving North Bend” and decisions grounded in being community-minded, collaborative, accountable, informed and acting with integrity.  She said the city relied on the 2025–2028 Strategic Plan as a “lens” for key decisions in 2025, focusing on five areas: financial stability, policy review, public safety, infrastructure and economic development.  Among the outcomes highlighted was the permanent removal of the Urban Renewal special levy from property tax statements, which the city estimated returns about $337,488 per year to North Bend property owners.  Engelke also pointed to a change in state law — Senate Bill 1062A — that restores the City Council’s ability to set sewer rates by a simple majority vote beginning Jan. 1, 2026. She said the change supports ongoing maintenance and funding of essential infrastructure.  On funding, Engelke said the city secured $3,859,326 in grant awards in fiscal year 2025, an amount she described as roughly 82.5% of the year’s total property taxes. Examples included $2.49 million for fire station seismic upgrades, $1.34 million for pump station and roadway needs, and $125,000 to support a dedicated narcotics detective.  Engelke highlighted the reopening of the renovated library in March 2025 and said it has recorded more than 50,000 visits since reopening. She said $782,964 in outside grants and donations helped offset local costs.  On public safety and preparedness, Engelke cited the relaunch of the K-9 Athena program with more than $60,000 in community donations, the expansion of emergency response tools — including drones — and hazardous fuel reduction on 30 acres to help protect community assets.  Engelke also described progress on workforce housing, including efforts to repurpose the former courthouse annex into housing for essential workers, supported by $4 million in federal funding and $100,000 in state predevelopment funding.  In public works, Engelke said the city launched an artificial intelligence and lidar-based pavement system to evaluate 64 miles of paved roads and completed a $1.24 million Broadway Avenue sanitary sewer replacement.  She also highlighted modernization work inside city government, including digitizing 30 years of City Council minutes, inventorying 2,084 ordinances and launching a cloud-based permitting platform intended to make licensing and permitting easier for residents and builders.  Looking ahead, Engelke said inflation has risen more than 23% over the past five years while city revenues remain constrained by Oregon property tax limits. If that imbalance continues, she said the city’s General Fund could face an estimated $1 million deficit within three to four years without new revenue.  Engelke thanked the Bay Area Chamber of Commerce for hosting and recognized city staff, volunteers, partners, residents and local businesses for supporting the community’s work.