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From the introduction of the 2008 Budget by Mayor John Wise: It is with great pleasure that we present the 2008 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 2008 Adopted Budget is the Mayor's recommended budget for the coming year and constitutes his recommendations for spending in all areas, operations, capital and establishment of reserves. The budget process is an evolving process and may require changes by the Mayor or Council at any time until the budget is finalized. Updated information from the Finance Department may be provided to Council. Changes will occur upon Council direction and approval.
2007 Improvements
In 2007, 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:
Regulatory Requirements:
Infrastructure Upgrades:
Service Improvements:
2008 Budget Financial Highlights
Three Year Expenditure Comparison
The total City budget for 2008 is $92,778,989. This is an increase of $27.0 million over the 2007 budget. The increase is principally due to construction of the new wastewater treatment plant. Construction of the new plant began in 2007. Total project expenses in 2008 will exceed $17.6 million.
Total citywide expenditures increase by $1.4 million in 2008 when ending reserves, transfers and extraordinary expenditures are factored out. Citywide budgeted operational expenditures total $22.9 million in 2008.
The General Fund Budget for 2008 is $11,170,144. Operating
expenditures increase $770 thousand largely due to increases in payroll and
employee benefits costs, principally health care. The 2008 budget includes an
increase of 3.5% for cost of living and 14.8% increase in the medical plan. A
slight increase in pension costs is offset by a slight decrease in worker's
compensation. Projects increase by $175 thousand and ending fund balance by $381
thousand. Financial Health
Overall, the City is in good financial shape going into 2008. In 2006, Council adopted two key financial policies designed to maintain financial condition and provide direction to staff during budget preparation:
In the 2006 and 2007 budgets, 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.
In June of 2005, the Finance Department was estimating that the General Fund would exhaust its reserves by 2008. The adjustments made during the 2006 and 2007 budget processes have reversed this trend.
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.
We will continue to closely monitor General Fund reserves over the next several years until such time as new growth begins to replenish our reserve balance. With the additional revenue from annual 1% increases in property tax, we can maintain the current level of service to the community. 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 City and King County Fire District #28 have commissioned a feasibility study on levels of service and the future operating form of the department. Recommendations from the study could result in considerable increases in operating costs of the department. Increased expenditures will require voters to approve either levy increases or the creation of a new fire authority.
The City operates four utility funds; Water, Wastewater, Natural Gas and Solid Waste. The Wastewater utility will be adjusting rates upward in 2008 by 27%. The Natural Gas utility is anticipating a rate decrease of 15% in 2008. The Water and Solid Waste utilities have small inflationary adjustments in 2008. A Stormwater utility is in the developmental stages.
Summary
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 2008 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
Please Note: You will need version 6.0 (or greater) of Adobe Acrobat to view the budget document. Get a free version here. If you have questions
regarding the City budget, please contact the City Finance Director at (360)
615-5610.
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