Mayor Says 2012 Budget Outlook Bleak, Rallies Community to Come Together

Dear Honorable City Council Members and Citizens of Enumclaw,

Today I submit to you for consideration the 2012 preliminary budget. The budget focuses on maintaining core services. It also attempts to preserve those services that are important to the city's social fabric and lend to Enumclaw's livability and quality of life, such as the Sr. Center and Parks.

Unfortunately, our city's economic outlook has not brightened over the past 12 months as we had all hoped. With the decline in real estate values, numerous foreclosures all of which have a significant impact to our general fund, it seems as if the current recession simply will not end. Sales tax revenues that also fund the general fund are staying somewhat steady but clearly, we are all dealing with a new kind of economic reality.

Thus I have continued what I began last year -- a concerted effort to achieve organizational efficiencies, continuing to focus on core services, identifying possible alternative funding models to preserve services, effect strategic cuts, and modify staffing models.

This effort has an associated savings close to 1.3 million dollars and has enbled the city to stay, for now, within budget.

I am fearful to think where the budget would have been if we had not saved accordingly.

The 2012 budget was especially challenging to construct and is bleak. Falling revenues, escalating costs, and the Council's expressed desire to significantly "roll back" property taxes necessitated making additional cuts, deferring capital projects and purchases, reducing the levels of service, leaving vacant positions unfilled and implementing wage and salary freezes.

Even with these changes, the General Fund continues to be structurally imbalanced -- revenues are not keeping pace with expenditures. Thus, you will note a marked difference between the General Fund beginning and ending fund balance.

I urge the Council to use great caution and employ a long term vision when considering any levy roll back proposal. We all have a responsibility to take care of tax payer made investments in city facilities and property, fleet and equipment, and staffing levels necessary to provide excellent service.

We must also preserve a certain level quality of life and maintain the integrity of our community.

No longer can we disregard Core service funding such as streets utilities and public safety. Their deficiencies must be addressed and periodically adjusted to meet demand.

In 2012, with the resources set forth in the budget, the city will address a number of very important issues. They are:

• Infrastructure Funding - dismal REET revenues (real estate excise tax) have put in jeopardy the city's ability to fund infrastructure improvements. Consequently, we must find an alternative funding mechanism. Unfortunately, this budget does not include any street project funds.
• Economic Development - some level of growth is needed. But, it will not just happen. Like other cities, we must go out and try and attract the kinds of development that is wanted and much needed. We must work hard to keep dollars in our community. In support of this, the capital budget includes funding for an entry way monument, wayfinding signage, and other economic development strategies.
• Organizational Review & Efficiencies - the examination of departments and services will continue. Given available revenues, the city still has too many lines of business. A new sustainable model must be crafted. A review will be completed of the golf course operation, all utilities and police services.
• Human Services - A new dedicated funding model should be implemented to assist outside agencies, youth and sr. center with their increasing demand of helping those less fortunate in the areas of health, food, shelter.
• Though 2012 will undoubtedly be another challenging year, However, I am confident that through a cooperative approach a solution can be found to these and other issues which the city faces.

The budget contains few capital projects; a majority of the capital projects are "roll-overs" from the 2011 budget. Included are funds for fleet replacement (garbage truck), minor DP fund expenditures, and minor facilities upgrades.

Staffing is the same or less for all departments except for Expo which is proposing a slight increase to address maintenance personnel needs.

In conclusion, I would like to thank the department directors, staff and employees who have worked hard over the past 2 years. They have shouldered reduction in employees and increased workloads, covering positions during staff shortages, sacrificing elective training and scrimping on supplies while finding solutions to our budget challenges through grants and affecting cost saving efficiencies. They have done a tremendous job and I greatly appreciate their dedication and steadfastness all while continuing to maintain the service levels our customers expect.

Let us not forget the many volunteers in our community who have stepped up and dedicated many hours of support and services that contribute to the quality of life issues in Enumclaw. I thank you. Without volunteers our community would be a much different place.

As we step forward into 2012 and continued economic uncertainty we must be cognizant that the days of ... "But we have always done it that way" ... Have changed ... Everything has changed.

Globally, we are all desperately trying to identify what the new normal is. But we will not succeed unless we all begin to work together... We must share ideas, be creative in identifying new funding models, learn from other communities positive economic models and approaches and finally work together to develop a comprehensive approach that is overall best for Enumclaw. As I have always said ... set aside the "I" and look at the "we." This is your community ... you have a stake in its success and change does have a positive side to it ...

This community is about each and every one of us... And Enumclaw is a community that has always bonded together in difficult times... Once again...These are those difficult times of learning to live with much, much less and understanding that your city government can no longer finance those things we grew accustomed to for so many years. We must reach the point of sustainability and sufficiency focus on the city services we have support and operate them responsibly.

The submittal of the preliminary budget marks the beginning point in the annual budget process. I look forward to working with council and the community in crafting a final budget document.

I also look forward to another year of serving the citizens of Enumclaw.

Respectfully,

Mayor Liz Reynolds

Editor's Note: Mayor Reynolds read the above prepared statement at the opening of the first of four budget workshops intended for Council and staff to finalize a 2012 city budget.