As the calendar year draws to a close, the Bonney Lake city council was expected to pass the 2011-2012 biennium budget Tuesday night.

The two-year, $94 million spending plan is expected to pass nearly unchanged from the budget presented by Mayor Neil Johnson several weeks ago.

City administrator Don Morrison characterized the plan as a “hold the lone budget” being put in place to deal with an economy not turning around as quickly as many had hoped.

The new budget, however, while using only about $400,000 worth of the city’s fund balance to match revenues with expenditures, also includes a $2.6 million spending package designed to reduce the city’s fund balance and replenish some other city funds, as well as provide $1 million in seed money for the city’s YMCA effort.

During a retreat this summer, the council expressed concern with the size of the city’s fund balance, but also warned against using it to balance the budget because of a belief that expenditures should match revenues.

Morrison and Finance Director Al Juarez said they were very conservative in estimating revenues for the next two years.

“Our assumption for building was flat,” Morrison said.

And though the city is seeing a slight turn around in sales tax revenues, Juarez said the growth estimate in the budget is only 3 percent, half of the actual average growth over the past six years.

“We were very conservative in estimating tax revenues,” he said.

Morrison said a hiring freeze will remain in place through the year and there will be no cost of living adjustment for employees, but unlike 2010 there are no furloughs in the budget.

There was some discussion in the council over filling a sergeant position at the police department, which was left open when Ken KcDonough resigned following an internal investigation.

In an email Monday, Johnson said the position would remain in the budget, meaning it could be filled through the year, but would begin the year open.

In addition, there are no tax or fee increases outside of the one percent property tax increase allowed by law.

Juarez said the estimated a property tax rate of about $1.27 per $1,000 assessed home value. That is based on an estimated city valuation of $1.96 billion.

According to the Pierce County Asessor’s office, the average home value in Bonney Lake in 2010 was $262,542, down from $298,232 in 2009.Using that number, the average Bonney Lake homeowner will pay approximately

The 2010 tax rate was $1.26 per $1,000 assessed value.

However, because the actual valuation of the city will not be released until January, it is still an estimate and the official amount in 2010 increased from the original estimate, landing at a final value of $2.23 billion.

If the assessed valuation of the city goes up again next year, the tax rate should lower for residents, meaning next year’s taxes could be less than this year’s for most residents.

In all, Morrison said the average resident “won’t see any hurt” if the current spending plan passes as expected.

“Even though we’re struggling … this budget will maintain basic services,” he said.