Shoreline’s 2004 budget proposed

Shoreline City Manager Steve Burkett proposed a $58.3 million budget for 2004 to the Shoreline City Council on Oct. 20.

The proposed budget includes a one percent levy increase but decreases the property tax rate.

As proposed, the balanced budget breaks down to a $31.4 million operating budget, $26.7 million in capital improvements and $245,000 for internal services such as equipment replacement and vehicle maintenance.

It is 14 percent lower than the 2003 budget, because this budget eliminates a one-time transfer in the 2003 budget of $4.1 million in operating funds to the capital budget, Burkett said.

The budget spends 83 percent more on capital projects than last year because several projects will be ramping up in 2004, including the building of a new city hall, widening the Aurora corridor, building the Interurban Trail and pedestrian bridge and doing some drainage improvements at Ronald Bog and 3rd Avenue NW.

The budget proposes a one percent property tax levy increase which results in decreasing the city’s property tax rate from $1.35 to $1.30 per $1,000 of assessed valuation.

An owner of a $262,000 home currently pays $3,401 in property taxes, of which $354, or 10.4 percent, goes to the city. The rest goes to schools, the fire district, King County, the library district, emergency medical services and the port. If the Council approves the proposed rate, the owner of a $262,000 home would pay $6 more to the city in 2004.

The proposed budget calls for three additional employees for public projects and attorney’s office, and rearranging city personnel to reinstate the recreation superintendent position in Parks, Recreation and Cultural Services. These changes put Shoreline at about 2.6 employees per 1,000 residents, Burkett said, which is less than most surrounding jurisdictions. Edmonds has 2.9 employees per 1,000 residents, Lynnwood has 4.9 employees per 1,000 residents and Mountlake Terrace has 5.3 employees per 1,000 residents. With the additional positions Shoreline will have 138 full-time equivalent employees.

The proposed budget includes a 1.2 percent market adjustment for salaries and a 12 percent increase for health benefits. While most medical premiums are increasing by 26 percent in 2004, an employee task force worked over this past year to develop a way to limit the city’s health benefit costs to approximately one-half of future premium cost increases and was able to contain the health benefit costs, Burkett said.

Major changes in the proposed operating budget include a decrease in jail costs of $105,000 and an increase of 3 percent, or $207,000, in the city’s police contract with King County. The increase is primarily a result of a six percent salary and benefit increases, and the city paying more for the school resource officer because of an expiring grant. The budget also funds an additional traffic deputy.

The budget also proposes dipping into reserves to set aside $505,000 for emergencies and $200,000 for a one-time increase to the pavement management program to bring program funding up to $700,000.

In 2002 the voter-approved Initiative 776 eliminated the $15 vehicle license fee, but a Superior Court ruled it unconstitutional. It’s under appeal before state supreme court. If found unconstitutional the city would receive approximately $500,000 to go toward road repair and maintenance.

The City Council will conduct public hearings on the proposed budget on Oct. 27 and Nov. 10. The Council plans to adopt the budget Nov. 24. Copies of the proposed budget are available at Shoreline libraries and at City Hall.