Email to the Editor: Municipal Funding Challenges Means Tough Decisions on City Services

What services do you expect your Enumclaw city government to provide?  Do you expect a modern library?  Do you expect a fully staffed police department? How about streets with no potholes? If there aren’t sufficient tax funds to pay for all of the services, which priorities should come first, operating the library, or fixing our streets or hiring at least one more police officer?  

These were some of the issues discussed in our last city council meeting (2/13/12) when the council agreed to put the question of annexation to the King County Library System on the ballot on April 17th. We citizens of Enumclaw need to understand how municipal funding has been deeply impacted by several factors that make it difficult to provide even the core services our community has come to rely on --we as a community must face up to that reality.

We are currently funding operation of our library out of a property fund (Fund 180) that came out of the sale of property on Battersby and the land that the Sears store rests upon. Fund 180 was designated by ordinance to be used for capital expenses to maintain our buildings: Roofing and other major repairs and maintenance.  

Fund 180 is a reserve fund.  Once it is spent, it’s gone forever. Sound financial policy requires that we not use reserves to pay operating expenses, and yet we did that very thing for budget year 2012.  The majority of the Council made that decision because of the shortfall in the general funds.  They decided they were not going to use the money left over from the transfer of the fire department to District 28. 

Yet, what will the council do in 2013 if the KCLS annexation vote is defeated in April?  Is it appropriate to fund the library when we can’t even hire one new police officer or fix our streets that become more and more costly the longer we delay? At least two council members have said publicly the city will have to shut down the library because we can no longer afford it if the KCLS annexation vote does not pass.

Property tax money for city operations is declining due to decreased revenue. Because of the Eyman initiative, city government is limited to 1% increases per year when inflation has been 3% per year or more for most years since voters passed the initiative.  REET (Real Estate Excise Tax), which comes from the sale of houses, has been declining since the Great Recession hit in 2008, now going on its fourth year.

Some on council suggested the city give back the 50 cents/$1000 valuation money to the taxpayers spent on the library if the KCLS annexation vote passes.  That will further decrease the city’s ability to provide core services.  Others have suggested that we should run a levy to pay for the library, but if we do that, it decreases our taxing ability to raise money to fix our streets and hire new police officers.  Again, we must make difficult decisions. The city has been making cuts since 2009, and there is not much left to cut.  There is no excess fat in our city government.

There is no such thing as a free lunch.  No more tax increases will mean major cuts in service. Are we willing to face reality, or do we think we can cut city revenue forever and still maintain the same level of service as we have in the past? We citizens must face up to the fact that unless we increase our city’s funding, core services such as police and roads may very well be cut.

Thoughtfully,

Richard H. Elfers
Former Enumclaw City Council member and currently on the Library Board, but writing as a private citizen