EVERETT— The city’s proposed 2009 budget predicts no shortfalls, layoffs or cuts in services despite a perfect storm for money woes.
In fact, the budget unveiled by Mayor Ray Stephanson on Wednesday calls for adding 28 jobs to the payroll, bringing the city’s total work force to 1,208.
That cheery outlook is a stark contrast to Snohomish County government, which is grappling with the prospect of laying off dozens of employees to help close a projected $21 million deficit.
The city prepared the budget before the havoc of the last several weeks on Wall Street and without factoring in any lingering effects of the Boeing strike.
“Like nearly every city in the nation, we too are affected by the challenges of a struggling economy,” Stephanson told the City Council on Wednesday morning.
Given the volatile economy, the city’s finance officials say they will watch business and sales taxes closely.
“In light of the current economic conditions, we have a very heightened sense of awareness” said Debra Bryant, the city’s chief administrative assistant and finance director.
Overall the city’s budget is expected to grow to $505.7 million, up $13.4 million from the adopted 2008 budget of $492.3 million.
Most city departments are expecting their budgets to increase from 1 percent to 10 percent.
Most of the growth in city government will happen in the city utilities department, which is an enterprise fund, meaning that the department must support its operations with rates. Stephanson’s plan calls for increasing the department’s budget to $118.3 million, up from $94.2 million.
A recently approved sewer and water rate increase will provide the utility with enough revenue to hire an 13 additional full-time employees and continue working on a number of major sewer and water upgrades.
The Planning and Community Development Department will stay at 16 positions; the county is looking at heavy cuts in its planning department.
Even so, the city department saw growth earlier this year in its budget and that will be wiped for 2009 if the mayor’s budget remains the same.
On Wednesday, Stephanson also said the city has retired the last of its voter-approved senior housing debt and has made final payments on the Everett Performing Arts Center, Fire Station 7 near Silver Lake and the Main Library expansion.
City Councilwoman Brenda Stonecipher, who is chairwoman of the city’s budget committee, said the important budget decisions next year will likely come in the form of amendments to the budget.
“The good news is, when you budget very cautiously and are conservative in your estimates, you give yourself some wiggle room,” Stonecipher said.
Councilman Mark Olson said the mayor was careful to provide a budget that wasn’t too lean or too conservative. And the budget process is nimble enough to allow changes to be made in future months.
“It’s a reasonable budget,” he said. “Prudent for an uncertain time.”
The mayor’s budget must be adopted by the City Council by the end of this year.
Reporter David Chircop: 425-339-3429 or dchircop@heraldnet.com.
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