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<< Previous   of   Next >>   ADVERTISEMENT   CONTACT THE HERALD Robert Frank, City Editor frank@heraldnet.com   Published: Sunday, October 19, 2008 Arlington prepares for tight budget With sales tax revenues faltering, city officials say layoffs and service reductions are possible if the economy doesn't improve. By Gale Fiege Herald Writer ARLINGTON -- Sales tax revenues are down, a hiring freeze is on and the city is putting off building a new fire station. "This is the most difficult budget that the city has faced in at least 10 years," Mayor Margaret Larson said. Arlington's proposed 2009 budget of $74.5 million is lean, but most services should continue to be provided, city spokeswoman Kristin Banfield said. "We're doing better than some cities, but we are pinching pennies like everyone else," Banfield said. "The budget is very tight." If the economy doesn't improve in the new year, however, layoffs among city employees are possible and cuts in city services would follow, she said. "We're hoping that economists' projections are true that this situation will correct itself by spring," Banfield said. Sales tax revenue, which accounts for about 30 percent of the city's general fund revenue, is expected to come in about $475,000 less in 2008 than in 2007, city finance director Kathy Peterson has told the City Council. The collection of sales taxes already are down significantly this year and causing problems for the 2009 budget, Banfield said. To make up for some of that lost revenue, the city is proposing to increase its property tax by 1 percent, the maximum increase allowed by state law. The boost would give the city an additional $22,000 next year, Banfield said. "And that's not a lot when you're trying to balance the budget," Banfield said. "Sales tax revenues are down because people are buying only the necessities right now. They aren't buying cars." A public hearing on the proposed property tax increase, which would result in a levy rate of 97 cents per $1,000 of assessed value, is scheduled for Nov. 3. The city has not hired employees for several vacant positions, including those in planning and community development, public works, engineering and police department administration. The city also has restricted spending for travel and training that is not required by the state, Banfield said. Planning for the new fire station on 172nd Street NE is continuing, but construction of the $4 million station is on hold until the economy gets better. In the meantime, the city will go ahead with the $1.5 remodel and addition at Fire Station 46 in downtown Arlington, Banfield said. The city's budget also includes a $16 million expansion of Arlington's wastewater treatment plant. Grants and loans make up the bulk of the funding for the expansion, she said. "We're excited about getting that project going. That means local jobs for a couple years, so that's nice," Banfield said. While housing starts and real estate excise tax revenues are down, people are still building commercial projects. These, too, will help the city, she said. In addition, a local improvement district bond for street improvements is set to be paid off in 2009. The city is required to maintain a fund to guarantee the payment of the bond. When the LID is paid off, state law requires that the money, about $590,000, be returned to the city's general fund, Banfield said. Reporter Gale Fiege: 425-339-3427 or gfiege@heraldnet.com.

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