2013 Budget 'Lean' but Can Support Basic Core Services in Enumclaw's Centennial Year

Though 2013 marks the city of Enumclaw's centennial year, financially, its expecting 'another lean budget' with flat to declining revenues, according to City Administrator Mike Thomas.

It's not a surprise for anyone that economic recover has been slow, Thomas said to the City Council on Wednesday during its first of four budget workshops this fall to which the public is invited.

Nonetheless, as leaders continue to find ways to keep the city within its means, "I am pleased this budget is able to fund basic core services at current levels and to meet the general fund reserve policy of 8 percent of expenditures," Mayor Liz Reynolds wrote in her introductory letter at the front of the 2013 preliminary budget, which is available online at the city website (pdf).

Budget at a Glance: The focus for the city in 2013 will be on core services rather than capital projects, Thomas said, as funds for the latter are limited but about $250,000 has been set aside for road maintenance. The general fund for 2013 will be 7.4 percent lower than it was in 2012 at $9,236,402 and capital budget is $422, 940, making the total budget $41,807,478.

The restructuring of city departments, putting off of spending and annexing of the fire district and library have helped to bring expenditures more in line with revenues.

Sustaining and enhancing the city's quality of life will be a goal as well, as it's shown that towns that do well in an economic downturn continue to invest in parks and trails to make it an attractive place to live, he said.

Economic Outlook: Communities surrounding Enumclaw have begun to see signs of development again though it's expected Enumclaw will be at the tail-end of that process, Thomas said. The city does not have the infrastructure ready to go for developers to come in and starting building. Nonetheless, there are optimistic signs as several local businesses opened this year including Mountain Aire Mercantile, Monticello and Northwest Safe within the city.

2013 Property Tax: The city's property tax levy rate increases to $1.36 per $1,000 assessed value next year, which will bring in $1.355 million in property taxes. The city's total assessed value for next year is $990,984,246, which is about $40 million lower than in 2012, necessitating the levy rate increase. The city also has an unused banked capacity of about $540,000.

Notes on City Funds:

The end of the city's contract with Maple Valley Courts this year will represent a noticeable decrease in revenues, said Finance Director Stephanie McKenzie. Councilmembers Mike Ennis and Sean Krebs inquired as to whether or not the city will also cut expenditures after the contract is complete as the work load for employees will be reduced.

The new SCORE Jail will also divert some revenues that would have gone to the Enumclaw Jail. Thomas said the city was actively looking for other cities to contract with to provide jail services.

Four years have passed since the city's 23 non-union employees have received a step increase to cover cost of living. There are funds to provide a 3 percent increase for 2013, Thomas said. To balance that expenditure, most city departments have made some reductions in salaries and benefits.

In the police department, money is still budgeted to cover overtime costs though a new officer's position is being filled. Chief Jim Zoll explained this was because the new officer wouldn't be available to start until the second quarter of next year. With at least one retirement also expected next year, the department remains stretched thin.

Due to a change in state law, the city's lodging tax, described as to be used to promote tourism in Enumclaw, cannot be used to fund the Chamber of Commerce. Last year, the city pulled $5,750 from the Lodging Tax fund to subsidize operations at the Visitor Center. The money now has to go toward a specific tourism project, Reynolds said.

The city's two Real Estate Excise Tax funds continue to see declines in revenue though it is planning to apportion $42,000 next year for the Enumclaw Golf Course. Several councilmembers agreed a conversation needed to take place about the state of the golf course and why the city needs to continue to subsidize its operations. It should have been a money maker, as promised to city voters, Councilman Sean Krebs said.

Up Next

Monday, Oct. 22: The first of two public hearings on the setting of the property tax levy for next year takes place during the regular City Council meeting.

Wednesday, Oct. 24: The second of four budget workshops will cover library and community services, outside agencies, parks, Expo Center, community development, property management and general fund subsidies.

Wednesday, Nov. 7: The third of four budget workshops will cover public works, capital and significant expenditures and interfund charges

Tuesday, Nov. 13: The second of two public hearings on the setting of the property tax levy for next year, as well as the first public hearing on the preliminary budget, takes place during the regular City Council meeting. The second and final reading of the property tax levy ordinance will be voted on as well.

Wednesday, Nov. 14: The fourth of four budget workshops will cover city wide summary, review and discussion.

Monday, Nov. 26: The second of two public hearings on the preliminary budget will take place during the regular City Council meeting.

Monday, Dec. 10: The second and final reading of the budget ordinance will take place during the regular City Council meeting where it would be adopted if passed.