Slack tax revenue forces Lake Stevens to cut three jobs

Published 11:19 pm Sunday, November 9, 2008

LAKE STEVENS — It looks as though city government here is about to be bitten by the layoff bug.

The city of Lake Stevens is proposing to cut three positions from its staff of 60 in 2009 in response to a downturn in revenue.

The city expects to receive $400,000 less in tax revenue in 2009 than it will for 2008, city administrator Jan Berg said.

One position each in administration, planning and public works is proposed to be cut.

“We have to reduce expenses, just like everyone, like the citizens are having to do,” she said.

The public could notice a difference in the time it takes for the staff to process permit applications and public records requests, she said.

“We’re spreading out a lot more of the administrative duties. When you start with a small staff, any decrease has an effect,” she said. “We’re trying to make it as seamless to the public as possible.”

The proposed budget also asks for a 1 percent increase in the city’s general property tax.

The city’s proposed budget is scheduled for a hearing at 7 tonight. Two more hearings are tentatively planned for later in the month, with the council scheduled to vote Dec. 1 on the final budget.

The downturn comes not only from a drop in building permit fees, which is affecting larger cities as well, but from a drop in retail sales tax revenues, Berg said.

“The thing that’s killing us is our lack of commercial” businesses and the tax revenues they generate, she said. “We want to do something to change that.”

The city is considering hiring a consultant to help with an economic development plan, though it’s not in the budget yet, she said.

One area that won’t suffer in the Lake Stevens budget this year is sidewalks. The budget proposal includes depositing $500,000 into a fund to build more walkways in the city.

This year, the city spent that amount for library service from Sno-Isle Libraries. In May, voters in the city decided to tax themselves directly for library service, saving the city the task.

After the library vote, residents overwhelmingly wanted the savings used for sidewalks, Berg said.

The city is currently working on a plan for where the new walkways would go, she said.

City Councilwoman Suzanne Quigley said she’s especially concerned with making sure the money for sidewalks is preserved.

“Even though we’re facing tough financial times I think it’s important we keep that commitment and move our community forward into being a more pedestrian-friendly place,” she said.

Regarding the budget in general, Quigley said, “There’s some tough decisions to be made. I for one am holding out on a final judgment until I hear a little more from the public.”

Reporter Bill Sheets: 425-339-3439 or sheets@heraldnet.com.