As a longtime supporter and admirer of former Mayor Ed Hansen, I was surprised and disappointed by his negative advertisement on behalf of Ray Stephanson. His attack on Mayor Frank Anderson “and his allies” was uncharacteristic. As one of the mayor’s “allies” and member of the city’s budget committee, I make this response.
Mr. Hansen is correct that projected general fund expenses exceed the projected general fund revenue for the coming year. The same was true with the 2003 budget largely prepared by his administration before his July 2002 departure and as was the case with the 1995 and 1996 budgets also prepared by his administration. It is inaccurate and misleading to state, however, that the difference is being covered by dipping into “reserves” for $4.6 million. The city’s reserve fund has not been touched nor does the current preliminary budget propose to do so.
The city is simply taking $4.6 million of the nearly $23 million carry forward surplus from the current fiscal year. This is exactly what the Hansen administration did during a similar short term decline in the economy during 1995 and 1996, when nearly $7 million was taken from the cash forward surpluses of previous years to balance the budgets.
Utilizing a surplus to continue providing a consistent level of essential government services during a temporary economic downturn is responsible public financial stewardship. Otherwise, we would be acting like a fiscal yo-yo, adding or eliminating services and personnel every single year depending upon the ups and downs of the economy. What was prudent for the Hansen administration is just as prudent for the Anderson administration under similar conditions.
The misleading advertisements by the Stephanson campaign should cause voters to question his grasp of municipal financial management.
Everett City Council
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