As mayor of the largest city in Snohomish County, one of the most important parts of my job is to make sure city money is spent wisely. That’s why much of my time each year is dedicated to keeping a close eye on the city budget.
At this time, our City Council is in the midst of considering the adoption of our 2008 budget. While understanding the budget is not a simple task, I feel it’s important to explain to you, our taxpayers, how the process generally works.
The City of Everett adopts a budget every year. We identify core services and priority programs and determine the costs. Then, we review this information with the City Council’s budget committee. Then, we present the proposed budget to the public and full City Council. The council holds public hearings before adopting a final budget.
The 2008 total budget is $488 million. That number represents money the city will spend in 2008 to deliver public services as well as money set aside for capital projects, emergency savings and fire and police pensions.
The City of Everett receives money from several sources including taxes (property, sales and business), grants, fees and fines. Everett’s budget is divided into 42 funds such as general fund, special revenue, debt service, enterprise, internal service and pension funds. Because there are so many funds, and each has a particular purpose, understanding the fund structure helps in understanding city finances.
Most city services are provided for through two types of funds, the general fund and enterprise funds. General fund money does not support enterprise functions and vice-versa, as prescribed by the state Auditor’s Office. The general fund pays for most of the day-to-day city services. The City of Everett’s enterprise funds pay for services such as Everett Transit, sewer and water service, and golf.
The general fund ($114.5 million in 2008) pays for services such as police, fire, library, streets and roads, and parks. To give you an idea of where this money comes from, in 2007, taxes represented about 83 percent of general fund revenue with property taxes representing the largest share at 32 percent.
Public safety has been my No. 1 priority throughout my service as Everett’s mayor. The 2008 budget upholds my strong commitment to public safety, representing $55 million — 47 percent of our general fund budget.
Meanwhile, enterprise funds typically pay for specific services through designated voter-approved taxes or through user fees. In 2007, voter-approved sales tax supported 66 percent of Everett Transit’s operations. And, for the same period, water and sewer services were supported virtually 100 percent by paying customers.
The city’s budget also reflects money available for capital investments and money the city keeps in savings. The bulk of the money in these funds is not collected in any one year. It accumulates over time and is used to pay for construction projects such as a new fire station or parks.
These funds are important for the city, and taxpayers, because they enable the city to pay cash for vital capital projects, which reduces the need for the city to borrow money. Pension funds make up about $55 million and provide money to fulfill obligations to retired police and fire personnel who entered service prior to 1977.
The city also has money in reserves — much of which is restricted to certain uses by policies — to continue city operations in the event of a disaster or unforeseen event.
This column paints only a general picture of how the city’s budget works. More information about the budget process can be found on the city Web site at www.ci.everett.wa.us/default.aspx?ID=1205.
Ray Stephanson is mayor of Everett.
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
