The Shoreline city manager’s 2010 budget recommendations do not include layoffs, furloughs or raising property taxes. But the bleak economy and a $1 million projected deficit means dipping into reserves, implementing a hiring freeze and no cost of living increases for non-union employees.
The proposed 2010 budget is $84 million, a 31.5 percent decrease from the 2009 budget.
City Manager Robert Olander presented his budget recommendations to the council during its Oct. 12 meeting.
Olander’s proposal does not include the impacts of Tim Eyman’s Initiative 1033 if voters approve it. The initiative proposes locking in 2009 revenues as a baseline for future budgets to reduce property taxes. Officials from Shoreline, Lake Forest Park and Mill Creek do not support I-1033 because it would hinder cities from climbing out of the recession.
Staff will present their budget proposals beginning Oct. 19. Public hearings are scheduled for Oct. 26 and Nov. 2. The council is anticipated to adopt the budget on Nov. 23.
“We have very efficient employees,” Olander said. “We’ve asked them to do more with less.”
The 2010 proposed budget is available online at www.shorelinewa.gov. Copies of the budget book are available for review at the Shoreline and Richmond Beach libraries, both Neighborhood Police Centers and City Hall.
Staff projects a citywide drop in property values. The 15 percent drop will change property owners’ tax rate from 95 cents to $1.11 per $1,000 of assessed value.
Shoreline Finance Director Debbie Tarry said the net amount is still the same, but the levy rate has to change to make up for the dip in property values.
Olander recommended earmarking $34.4 million for the city’s operating fund, representing 41 percent of the city’s budget. Olander proposed allocating $41.5 million for the capital fund, making up 49 percent of the city’s overall budget.
The operating budget includes, but is not limited to, public works, parks and recreation and public safety, representing the largest portion of the budget.
Olander proposed a 5.5 percent, or $509,000 increase in the city’s contract with King County Sheriff’s Department for police services. The increase should cover the added expense of switching a city position to a contracted position and a 5 percent cost of living increase for union represented deputies.
Tarry said the city is asking for a $9.75 million contract for police services from the Sheriff’s Department to pay for deputies, a chief, personnel and the city’s share for the 911 dispatch center.
Sheriff’s Department spokesman Sgt. John Urquhart said the department’s total budget is $141 million.
Urquhart said the budget is divided into three pots that do not affect each other; one is distributed to police service contracts with cities, another is revenue from the county general fund and the third is funded through a tax levy.
“The first two funds have been significantly impacted by the recession because the cities and the county have less tax revenue so less money to spend,” he wrote in an e-mail. “In other words they have to tighten their belts.”
Urquhart said the cities have generally been impacted less than the county because they have more sources of tax revenue and critics accuse the county of overspending.
“We have seen no layoffs or reduction in police services from the cities,” he wrote. “They are careful with their tax dollars, but maybe haven’t expanded like they wanted, but no reductions to us.”
The sheriff’s department on the other hand has seen 86 positions eliminated in the last 18 months. Urquhart said up to 27 more positions could be cut in 2010, hitting mostly deputies.
“We have no problem ‘balancing’ our budget,” he wrote. “We only spend what money is allocated to us by the Executive and County Council. If they don’t give us enough, positions, usually police officers are eliminated. That means reducing services.”
Olander recommended earmarking more than $30 million in the general fund, tapping $980,000 of the city’s reserves and cutting three vacant full time positions.
Tarry previously assured the City Council staff will not recommend raising property taxes but will have to dip into the city’s reserve fund to balance the city’s lean 2010 budget.
The impacts the recession has made on sales tax and development revenues are the driving force behind dipping into the city’s reserves, she explained, adding that the council should anticipate a slow, gradual recovery once the recession hits bottom.
“Future budgets will require additional revenue sources and service level reductions,” she said.
Further pinching the budget is the impact of Eyman’s Initiative 747, which caps annual property tax increases at one percent without voter approval.
Tarry pointed out that inflation has been higher than one percent which has “put a squeeze on our budget.”
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