By Donna Michelson
The Mill Creek City Council and staff have been working on the preliminary 2005-06 budget, a difficult balancing act.
We have many discussions and differing viewpoints. However, you may be assured, keeping Mill Creek a city for citizens of all ages to enjoy and be proud of is the ultimate goal of Council members and staff.
Proactive financial planning has become extremely critical. For many years we have enjoyed a healthy city with growing reserves. However, revenues are decreasing and expenses for essential services continue to escalate. With the expense of doing business outpacing revenues, we look at trimming expenses that will least impact the quality of life. With Mill Creek nearing build-out, we can no longer count on builders filling city coffers with developer related revenues.
Voter approved initiatives have taken their financial toll: I-695, Motor Vehicle Excise Tax, reduced revenue by $380,000 annually; I-747, Property Tax Limitation, restricted the amount of increasing property taxes to 1 percent. This 1 percent equates to revenue of $39,000 per year. Even before this initiative, Mill Creek had not raised taxes to the statutory maximum allowed since 1993.
On a per citizen basis, our revenues and expenses are substantially lower than other cities our size around the state. However, we continue to offer a high level of services through innovation, creativity and efficiency.
Discontinuing the direct funding of the Mill Creek Library was discussed in detail many times. The decision was made to put the library contract to the vote of the citizens to annex to the Sno-Isle Regional Library System. This would free up approximately $530,000 annually to be used for city operations. If voters approve this measure, they will be billed a separate additional tax.
Annexations are another avenue that can have a positive revenue impact. Annexing the Thomas Lake area and a portion east of 35th Avenue SE is currently being entertained. A development company applied to Snohomish County to develop of a “big box” and another large retailer in this area (rumored to be a Wal-Mart and a Home Depot).
I personally struggled with this potential annexation, but felt it could create a needed financial boost. Some citizens have expressed an opinion of not welcoming these retailers to the city. Since application has already been made, they will be coming to our neighborhood whether they end up in our city – with revenue to us – or directly across the street in Snohomish County – with no revenue directly to us.
If the annexation goes through in a timely manner, we can also capture dollars on the construction costs in addition to controlling the standards and design of these projects.
As always you are welcome and encouraged to attend Council meetings. We want to hear from you.
Donna Michelson is a City Council member and Mayor Pro-tem for Mill Creek.
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