ARLINGTON — A struggling economy is the new norm, and it’s unlikely to change any time soon, said city administrator Allen Johnson.
“We were waiting for blue sky, but I don’t see it happening for at least five years,” Johnson said.
At its workshop meeting Monday, the Arlington City Co
uncil chewed on some options to keep city services afloat in the coming year.
City officials expect a $2 million budget deficit for 2012.
To plug the hole, the council is contemplating a variety of tax increases and payroll cuts.
On the city employee side of the equation, the proposed budget-balancing act includes not replacing people who are retiring or leaving city jobs. It eliminates all cost-of-living raises and step increases, including those for fire and police union members. It would require that all employees take an unpaid day off each month, which amounts to a 5 percent pay cut for all. These decreases are worth about $1.23 million, Johnson said.
The council also is considering revenue increases that could amount to about $770,000.
The proposed tax increases include those on utilities. Now taxed at a rate of 5 percent, the electricity, garbage, water, sewer and stormwater utility taxes could rise to a rate of 6 percent. Utilities taxed now at a rate of 6 percent — natural gas, telephone and cable television — could rise to a rate of 8 percent.
The council also is considering a $20 annual vehicle tab fee or a sales tax increase of 0.1 percent to pay for road maintenance. To pay for fire and police coverage, the proposal is a separate sales tax increase of 0.1 percent. Sales tax increases must be approved by voters.
City officials are preparing a chart that shows what these tax increases might mean to the average homeowner.
Another option: The city could balance its budget by laying off 25 of its 142 full-time employees, city officials said.
“But I can’t sleep because I don’t want to send our people out into this economy,” Johnson said. “And if they go, city services will be cut severely.”
City Councilwoman Linda Byrnes, noting that most city employees also volunteer their time to care for parks and other jobs, asked her fellow council members to consider cutting the council budget as well. The council budget includes stipends members receive for attending community meetings.
The council plans to talk again about the proposed budget at a workshop scheduled to follow its regular council meeting at 7 p.m. Monday.
Gale Fiege: 425-339-3427; gfiege@heraldnet.com.
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