Published: Wednesday, September 30, 2009
Everett trims 2010 budget plan
City officials propose eliminating raises and cutting some paving projects.
EVERETT — When times are tough, you might put off a home repair or cut a contribution to your nest egg.
When you’re keeping the city’s books, it’s not too different — except for a few extra zeros.
In order to balance next year’s budget, Everett officials want to postpone replacing some vehicles and cut back on money for re-paving city streets. City employees won’t get a cost-of-living pay bump. Contributions to the police and firefighters pension would also temporarily be stopped under the proposed $112 million budget for 2010.
The public can weigh in on the city’s proposal at public hearings, the first of which is set for Oct. 28.
Area cities and Snohomish County are struggling to balance their budgets as the effects of the recession linger. The city of Everett took just as big a hit: Sales and business tax revenues are down, said Debra Bryant, Everett’s chief financial officer.
This year the city has already readjusted its 2009 general budget, chopping a total of $7 million and finding $1 million in grants to cut this year’s budget down from $118 million. Even with those measures, the city may still be as much as $1.5 million short by the end of the year, she said. The general fund pays for basics such as city employee salaries, city vehicles, training, supplies and equipment.
The city is belt-tightening every place it can, she said. For instance, every vacant position — if it’s refilled at all — is scrutinized before someone is hired.
Still, the city is managing better than some, thanks to steps the leaders took when times were better.
In 2004 the city made cuts, including layoffs, that put its spending in line with its revenue, Mayor Ray Stephanson said. The city paid off some of its loans and renegotiated its health care benefits to reduce costs. City leaders also developed a policy to maintain a 20 percent reserve fund, which has to be repaid if used. That led to a stronger bond rating and lower interest rates on borrowing for capital projects, he said.
It doesn’t appear proposed cutbacks will include furloughs or layoffs for city employees — at least for now.
Bryant acknowledged at the City Council meeting last week the city may have to look at that possibility if the economy doesn’t turn around.
Debra Smith: 425-339-3197, dsmith@heraldnet.com.
When you’re keeping the city’s books, it’s not too different — except for a few extra zeros.
In order to balance next year’s budget, Everett officials want to postpone replacing some vehicles and cut back on money for re-paving city streets. City employees won’t get a cost-of-living pay bump. Contributions to the police and firefighters pension would also temporarily be stopped under the proposed $112 million budget for 2010.
The public can weigh in on the city’s proposal at public hearings, the first of which is set for Oct. 28.
Area cities and Snohomish County are struggling to balance their budgets as the effects of the recession linger. The city of Everett took just as big a hit: Sales and business tax revenues are down, said Debra Bryant, Everett’s chief financial officer.
This year the city has already readjusted its 2009 general budget, chopping a total of $7 million and finding $1 million in grants to cut this year’s budget down from $118 million. Even with those measures, the city may still be as much as $1.5 million short by the end of the year, she said. The general fund pays for basics such as city employee salaries, city vehicles, training, supplies and equipment.
The city is belt-tightening every place it can, she said. For instance, every vacant position — if it’s refilled at all — is scrutinized before someone is hired.
Still, the city is managing better than some, thanks to steps the leaders took when times were better.
In 2004 the city made cuts, including layoffs, that put its spending in line with its revenue, Mayor Ray Stephanson said. The city paid off some of its loans and renegotiated its health care benefits to reduce costs. City leaders also developed a policy to maintain a 20 percent reserve fund, which has to be repaid if used. That led to a stronger bond rating and lower interest rates on borrowing for capital projects, he said.
It doesn’t appear proposed cutbacks will include furloughs or layoffs for city employees — at least for now.
Bryant acknowledged at the City Council meeting last week the city may have to look at that possibility if the economy doesn’t turn around.
Debra Smith: 425-339-3197, dsmith@heraldnet.com.
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