Good news: No layoffs, program cuts for Olympia in 2018. Bad news: ‘Unfunded needs’

The Olympia City Council began its budget review Monday with some good news: 2018 won’t bring any layoffs or program cuts.

There are, however, some unfunded critical needs, said City Manager Steve Hall. Among them are a $100,000 climate action plan, a $75,000 homelessness response strategy, and replacement of both police and fire equipment.

“We actually have a little money,” Hall said. “We don’t have a lot of money, but we have some.

“Even though we have some money, we don’t have enough to do everything we’d like.”

The proposed 2018 budget includes a few utility increases. Water rates will increase 4.4 percent to pay down debt related to capital projects. And Waste Resources needs a 2 percent drop box services increase, a 2 percent residential services increase, and a 6 percent organic services increase.

The budget assumes 1 percent growth in property tax revenue and $68.4 million in new construction within the city. The Public Employees Retirement System will receive a 1.5 percent increase, and medical insurance costs will increase by 7 percent. The medical insurance alone will add about $500,000 in expenses to the 2018 budget, according to a city report.

Overall, revenues are expected to increase by 3.7 percent, and expenditures by 2.9 percent.

If Proposition 1, a property tax levy to fund public safety programs, passes in Tuesday’s election, the city would see an extra $2.8 million per year in revenue. That amount hasn’t been factored into the 2018 budget.

Olympia residents will have several opportunities to learn more or comment on the 2018 budget. Meetings will be held at the following times:

• Nov. 8: The Finance Committee will discuss the 2018 budget at 5 p.m. in Room 207 of City Hall.
• Nov. 14: At 5:30 p.m. the Olympia Metropolitan Parks District Board will hold a public hearing on the Parks District budget. At 7 p.m., the city council will review the utility rates, impact fees and lodging tax portions of the budget. Both meetings will be in the Council Chambers in City Hall.
• Nov. 21: The Olympia Metropolitan Parks District Board will adopt a Parks District budget at 6 p.m. The city council will review the 2018 budget at 7 p.m. Both meetings will be in the Council Chambers in City Hall.
• Nov. 28: During the 7 p.m. meeting, the city council will balance the 2018 budget in the Council Chambers at City Hall.
• Dec. 12: Budget adoption will be placed on the First Readings portion of the 7 p.m. city council meeting agenda.
• Dec. 19: The city council will adopt the 2018 budget during the 7 p.m. meeting.

This story was originally published November 4, 2017 at 6:07 AM with the headline "Good news: No layoffs, program cuts for Olympia in 2018. Bad news: ‘Unfunded needs’."