Shoreline tightens belt to maintain city services

Published 11:56 am Wednesday, April 8, 2009

In last month’s city newsletter, Currents, Shoreline city manager Robert Olander shared that the city of Shoreline may be faced with financial challenges as the national recession has grown worse and impacts are being felt throughout the state. On March 23, city staff recommended to the City Council that the 2009 budgeted operating revenues be reduced by 5.4 percent or $1.7 million. Reductions were made in the areas of sales tax, gambling tax and development revenues, which have all seen downturns as a result of the recession.

To keep the 2009 budget in balance and provide essential services, staff recommended a three-pronged approach for the City Council to discuss during the April 13 council meeting beginning at 7:30 p.m.

The first approach includes $730,000 in budget reductions such as:

•$237,500 from shifting some personnel to the capital budget from the operational budget. The city is using staff resources currently available due to the slowdown in development activity to do capital project work normally contracted out.

•$131,000 by extending the replacement life of city vehicles and major equipment by four months and not funding 2009 major repair and replacement accounts for city facilities and parks.

•$128,000 in reductions by all departments in areas such as supplies, advertising and contracted services.

•$75,400 by eliminating services that were backed by development revenues that will not materialize in 2009.

•$73,000 by eliminating non-benefited, temporary wages for some “extra-help” employees who assist during busy times.

•$60,500 from reducing budgeted travel and training by 20 percent.

•$15,000 of neighborhood/environmental mini-grant funding.

•$11,000 in police overtime.

A second step includes $376,000 in budgeted contingency that was reserved in case revenue estimates needed to be reduced in 2009.

The final staff suggested approach to keep the 2009 budget balanced includes the use of ten percent of the city’s Revenue Stabilization Fund, or $595,000. This fund was created to address revenue shortfalls during short-term economic downturns.This is the first time that the city must use a portion of the fund and the monies will be repaid, according to city staff.

The city will continue to monitor the impacts of the current recession on revenues and its ability to provide the most crucial services to the Shoreline community. For more information, contact finance director Debbie Tarry at 206-801-2301 or dtarry@shorelinewa.gov.