Mayor Denis Law presented to the City Council Monday night a proposed $252 million city budget that is being buffeted by a sagging state and national economy.
The proposed budget is a 2 percent increase over the 2008 city budget.
Now the City Council will review the budget proposal and make any changes; the council met on Wednesday with Law for a formal budget workshop. The public also will have opportunities to comment on the proposal before it’s adopted by the council.
All that work is being done against the backdrop of poor economic times. City revenues for 2009 are projected at $245 million, or $7 million short of balancing the budget.
So, Law is proposing to use fund balances for capital projects and equipment to cover the difference. That, in turn, means a proposed delay in the long-planned construction of a new parks maintenance facility.
Law already had announced a $5 million shortfall in the budget that covers city operations.
The biggest piece of the city’s overall budget is $171 million for city operations, which includes $101 million for general government operations. The general fund is particularly vulnerable to downturns in the economy because its primary sources of revenues are the sales tax and the property tax.
For example, the downturn in the housing market has helped cut about half the revenue the city receives from the transfer of property, such as the sale of a home. The Real Estate Excise Tax is projected at about $3 million for 2009, down from a peak of about $6 million in 2007. A decline in the sales tax from car sales, which are under pressure because of the economy, is estimated at between $600,000 and $700,000.
On the plus side, however, the opening of the new Regal cinemas at The Landing is expected to bring in about $400,000 in taxes.
Law is proposing that 36 job vacancies go unfilled and some services will be reduced. For the Police Department, for example, that could mean an end to the school resource officer program.
No employee layoffs are planned.
Law had asked that each city department cut its budget by 7 percent.
“This is a time for focusing on the city’s core responsibilities and doing those things well,” said Law. “The course we must take together is clear—set priorities and take care of the basics.”
The budget also proposes some increases in rates and fees, including for water and sewer and to golf and to rent equipment at the Maplewood Golf Course.
Still, there are also some big-ticket items in the proposed city budget.
Law has budgeted $12.5 million to buy the parking garage at The Landing, the single-largest capital project in the budget. However, rather than go into debt to buy the garage, Law wants to transfer the $7.5 million for the new parks maintenance facility to the garage purchase. The rest would come from reserves and fund balances.
Jay Covington, the city’s chief administrative officer, said the sale is triggered when The Landing is 70 percent leased and those stores are open for business. That threshold initially was expected to be reached this fall, but now it’s anticipated that mark will be reached this spring, he said.
The city will buy the garage from the developers of The Landing. Parking there is free.
Highlights of the proposed budget, as outlined by the city, include:
• Police Department: Hold eight positions unfilled including four civilians and four police officers, which imposes a freeze on the school resource officer program; adding an officer for the regional auto theft task force; increased police presence at the transit center.
• Fire and Emergency Services: Hold nine retired firefighter positions vacant in 2009 and reduce capital equipment. The department will return to the minimum staffing level of 32, with the addition of 12 new firefighters who will join Response Operations by the end of this year. Since the new firefighters will have limited time off in 2009, the need for overtime to maintain staffing levels will be greatly reduced and, as a result, there will be no impact on response times, despite holding the positions vacant in 2009.
• Department of Community and Economic Development: Hold five vacant positions. Given that development activity is slow, this is expected to have limited service impacts. Initiate the community Arts and Cultural Master Plan process and launch the Community Planning Initiative.
• Community Services: Hold two positions vacant and reorganize staff; reduce part-time and seasonal employees; reduce funding for community events, recreation facilities, contracted geese control, downtown flower baskets, supplies, and publications; reduce free concerts at Gene Coulon Memorial Beach Park to six per year. Add a limited-term outreach librarian and funding for Parks Division equipment.
• Public Works: Hold five positions vacant; purchase two backhoes and a dump truck to increase efficiency by making it possible for separate crews to operate in different parts of the city at the same time.
• Others: Hold three positions vacant in the Finance and Information Services Department; hold one position vacant in the Human Resources Department; hold 2.5 positions vacant in the Administrative, Judicial and Legal Services Department, and reduce travel and professional services budget.
In the utility funds, the budget proposes rate increases for water and wastewater but no increase for surface water. These proposed rate increases for 2009 are lower than what was set forth in the 2007 rate study.
“We have found many ways to reduce our costs while minimizing the impacts to our citizens,” said Law. “This budget makes some necessary adjustments but preserves core services. We will set priorities and continue to build a sound foundation for our city. Our budget will ensure our city remains committed to public safety, economic opportunity, core city services, and maintaining the quality of life that we are known for.”
The budget proposal
The Renton City Council will take public comment on the 2009 city budget proposal at its meetings at 7 p.m. on Nov. 3 and 10, with final adoption expected on Nov. 24. The proposed 2009 City of Renton budget can be viewed online at rentonwa.gov.
