The $109.4 million spending plan proposes eight positions being reduced from full time, three being downgraded and five eliminated. Proposed hires include a second mechanic in the fire department and three project-funded positions in public works.
And the message was clear from City Manager Steve Hall during his budget presentation to the City Council Tuesday night: There are minimal impacts to core services next year, but it could get worse in 2013 if things don’t turn around.
City officials say balancing the budget required something the city has never done before: tapping into the local improvement district fund to the tune of $250,000. The budget also does not include funding for the LEOFF long-term-care fund, general fund support for the building repair and replacement fund fire equipment reserves.
Using reserves is not sustainable, and the city might need to go before voters for a “substantial revenue increase” to balance the 2013 budget, Hall said.
“If not, the community is going to have to come to terms with … service decreases,” he said.
Administrative Services Director Jane Kirkemo outlined the general fund revenues for 2012, assuming dips in the gambling tax, development charge and parking fees. The city also projects to lose $525,000 in liquor excise taxes for 2012.
“This is not the same budget that you saw in 2008 … things have definitely changed,” she said, referring to the recession’s effect on revenue.
In 2010, $4 million was cut from the budget, resulting in 14 layoffs, part of 27 positions eliminated. A year before that, 21.5 positions were cut at the beginning of the year, with about $2.6 million more cut midyear.
The city does project a bump of $275,000 in sales tax from this year, but even that number has Kirkemo concerned; he cited a 7 percent drop in sales tax in October compared with last year.
Hall echoed those concerns.
“One of our major sources of revenue isn’t even where it was seven years ago,” he said.
BUSKERS TAKE STAND
A group of more than 30 people filled the council chambers – some playing instruments and singing – to support the city’s buskers.
After hearing from several speakers during public communication question the city’s laws on busking, the council decided to continue the conversation at a later date, putting the issue on the agenda for the land-use and environment committee scheduled for 5:30 p.m. Nov. 21.
Nate Hulings: 360-754-5476
nhulings@theolympian.com
www.theolympian.com/outsideoly
