From the introduction of the 2007 City of Enumclaw Budget by Mayor John Wise:

It is with great pleasure that we present the 2007 Adopted Budget to the citizens of the City of Enumclaw. This balanced budget maintains basic services, provides improvements where possible, prepares for change as our City grows and matches expenditures with existing and projected resources. The City of Enumclaw is truly a full service organization, providing basic general governmental services, police, fire, parks and recreation, human services, library, municipal court, arts and utility operations, water, sewer, natural gas and solid waste, as well as operating a pool, golf course and cemetery.  Situated in a rural setting near the rugged beauty of Mt. Rainer, the City enjoys the benefits of its proximity to two major metropolitan centers. We seek to protect and enhance the numerous values that make our community unique.

In 2006, numerous projects were completed to help improve effectiveness and efficiencies within the organization, meet regulatory responsibilities, replace aging infrastructure and improve our ability to provide services to our citizens.

Efficiency Upgrades:

The total City budget for 2007 is $67,753,258. This is an increase of $20 million over the 2006 budget. The increase is principally due to two projects; construction of the new wastewater treatment plant and the transfer of the King County Fairgrounds and other parks lands to the City. Construction of the new plant will begin in 2007. Total expenditures in 2007 will exceed $12.1 million. The transfer of property from the County, plus City expenditures, will approach $10.1 million. Total expenditures actually decrease by $1.6 million in 2007 when ending reserves and extraordinary expenditures are factored out. Citywide budgeted operational and project expenditures total $29.2 million in 2007.  The General Fund Budget for 2007 is $9,320,101. This is an increase of $317 thousand over the 2006 budget. This increase is largely due to increases in payroll and employee benefits costs, principally health care and pension benefits. The 2007 budget includes an increase of 4% for cost of living, 6% increase in the medical plan and 64.2% increase in state mandated pension benefits.

Overall, the City is in good financial shape. In 2006, Council adopted two key financial policies designed to maintain financial condition and provide direction to staff during budget preparation:

• Reserve Fund Policy

• Prioritizing City Expenditures Policy

In the 2006 budget, Council had the foresight to increase taxes to support the General Fund and prevent significant cuts in necessary City services. This increase came primarily in the form of banked property taxes that were subject to Council control. In 2007, Council supported administration’s request to use the remaining bank of property tax, $28 thousand, plus the 1% maximum, to provide for the increasing cost of General Fund expenditures.

Even with this increase, General Fund operating revenues fall short by $20 thousand of supporting operations. Necessary capital requests consume $283 thousand more. Revenues from grants, contributions and transfers from other funds total $115 thousand. General Fund reserves decrease $188 thousand.  In June of 2005, the Finance Department was estimating that at the 2005 revenue and expenditure levels, the General Fund would exhaust its reserves by 2008. With the adjustments made during the 2006 and 2007 budget processes the decline in reserves is slowed dramatically.  When new growth is factored in beginning in 2010, by estimating 100 new residential lot developments and some minor commercial development, the downward trend is reversed and General Fund revenue overtakes operational expenditures. Reserves begin to accumulate at the rate of approximately $100 thousand per year in property tax from new construction and $300 thousand per year in building permit revenue. Additional costs that growth will bring are not factored in, but should not surpass 25% of the new revenue.

To summarize, we will continue to require a drawdown of General Fund reserves to support expenditures over the next several years until such time as new growth begins to replenish our reserve balance. With the additional revenue from banked capacity and continuing annual 1% increases, we can maintain the current level of service to the community without substantial cuts.  All of this said, Council should be very protective of usage of reserves. In the future, should new development be slower than anticipated, staff may request direction to reduce service levels to decrease expenditures or prepare ballot measures to ask the voters to increase revenue, or both.

The heart of the City’s Mission Statement is the resolution to provide “excellence in public service.” This statement, and the goals and policies that derive from it, guide the formation of the enclosed budget document. Specific projects in this budget are tied to Council goals to ensure that our efforts are focused. During the budget process, many worthwhile projects are set aside for lack of funding or to make way for higher priority projects. The budget process is the physical and fiscal expression of the City’s Mission Statement and an extension of the Comprehensive Plan.

In this 2007 Budget, we have balanced our service provision capability with the priority needs of the community. With our commitment to teamwork, initiative, creativity, vision, customer satisfaction and quality performance, we will assure excellence in public services and the quality of life in our City.

Sincerely,
John G. Wise, Mayor