By MAYOR DENIS LAW

In a recent memo to city employees, I had the unpleasant task of explaining the financial status of the city, which is experiencing revenue shortfalls brought on by the national recession that dominates the news every day. I explained that local government is impacted just like private companies. Unfortunately — as bad as it seems right now — there are indicators that we have not yet hit bottom.

A significant portion of our revenues comes from sales taxes and fees we receive from consumer purchases, from auto sales to new development. Since last summer, revenue from these sources has continued to decline at an alarming rate. Other revenues the city receives (utility taxes, real estate taxes, state-shared taxes, interest earnings and development fees), are also showing signs of weakness and are falling below our budgeted projections.

It’s easy to understand why consumers are not spending discretionary dollars. People all over the country fear they may lose their jobs. Many are overextended with debt. Others have lost the foundation of their retirement. And when they refrain from buying a new home, car or even everyday products that we used to consider necessities (like daily trips to Starbucks), the downward spiral of the economy continues. Our auto dealers are experiencing the lowest sales in memory and many of our local businesses are struggling to keep their doors open.

As we look at ways to balance our budget, we are not looking for quick-fix solutions to fill budget holes. We are committed to putting our city on a new path that will lead to fiscal accountability, greater efficiencies, and a culture of innovation. And, public safety and protecting our citizens continues to be my No. 1 priority.

Our city administrators are looking at every possible way to maintain high-quality service to our citizens and to do more with less as revenues continue to fall. We are making decisions that will ensure our ability to provide critical services in public safety, while also doing everything we can to continue other services our citizens have come to expect that improve the quality of life in our community, such as special events, recreation opportunities and maintaining access to our first-class parks and trails.

The bright note in this bleak economy has been the generosity of local business owners and residents to help others in need. One example was the presentation of $41,000 in grants to local charitable organizations through the Renton Community Foundation. This money was raised from local donors over the past few months to help meet some of the growing needs in our community.

People are continuing to make purchases and they are going out for dinner, even if it’s less frequently. There has never been a more critical time for residents to shop locally! If you are going to buy a new car, do everything possible to purchase it from a local dealer. Patronize our local retail stores and restaurants. These businesses support this community in significant ways, and they employ many of our residents.

Things will get better! And while no one can look into the crystal ball to provide a date for our economy to recover, Renton will rebound as the opportunities present themselves. I see a bright future ahead for our city, one of the region’s most desired communities to live and work.

Denis Law is the Mayor of the City of Renton. E-mail him at dlaw@rentonwa.gov