Interim city manager Brian Wilson unveiled his latest proposed budget cuts — differing in areas from those offered by former city manager Neal Beets.
The suggested cuts were discussed May 26 at a Finance, Economic Development and Regional Affairs (FEDRAC) city council subcommittee. They are the first significant public action taken by Wilson since he became interim city manager May 5. The cuts differ slightly from those presented in April by Beets, who signed a separation agreement with the city in early May.
Wilson’s budget plans, if implemented, will affect the public and city employees. As a whole, the plan is structured to span a six-year time frame and assumes the economy has not improved by that time. Layoffs will take place this year and next year in an attempt to avoid the expected $4.9 million budget gap in 2010.
“The city is in the same situation as many of our businesses and residents,” Wilson said. “We’re having to make many hard choices.”
Public impacts
The public is likely to experience longer wait times and diminished customer service in select areas when dealing with the city. A building inspector, development specialist, recreation superintendent, police records specialist and park planner are on the list of layoffs.
During peak hours and seasons, construction permits, building application reviews and building inspections will take longer to process and complete, according to the City of Federal Way 2009-2010 biennial budget spreadsheet. Public safety could be impacted by a freeze on three police positions.
Direct communication with the public is in jeopardy. The spokesperson position could be sliced, cut to a part-time duty or contracted out to save money. Eliminating the position would save the city $50,000 annually. The position, which was created in 2007, is much-needed and a person on contract may not serve the city as well as a steady employee, city council member Dini Duclos said. The spokesperson speaks on the city’s behalf, interacts with the public and assists with securing legislative dollars and lobbying for bills that impact the city, among other duties.
“I think we need to have a voice in the community,” Duclos said. “It’s important to have someone that knows Federal Way. To me, it’s $50,000 well spent.”
Internal impacts
Fifteen city staff positions — five vacant — could be eliminated or restructured, according to the 2010 revised budget. Beets suggested seven employees be laid off and eight vacant positions kept empty.
Among the positions most recently in threat of being slashed is deputy city attorney. Aaron Walls, who holds the position, spoke at the FEDRAC meeting.
Beyond legal cases, the department assists with new legislation and programs, public records and economic development efforts, he said. Cutting a civil attorney will increase the city’s risk factor, and it could cost Federal Way more money to contract when unexpected projects arise, Walls said.
“It’s likely the city will have to turn to outside council in times of emergency,” he said.
The city’s assistant city manager position will also undergo change. The position, jointly held by Bryant Enge, who also serves as the chief financial officer, and Cary Roe, who also serves as the chief operating officer, will be eliminated. Enge will be renamed as the city’s financial services administrator, maintaining his current level of pay: $137,436, plus benefits, which brings the figure to $171,270. Roe, now earning the same annual salary, will pick up the vacant position of parks director and will take a pay cut.
The seven city council members offered to redirect 2 percent of their salaries — $13,800 annually each, not including benefits, and $18,000 annually for the mayor — into the city’s operating budget.
All remaining city employees face a 2 percent wage reduction. Beets’ proposal did not include wage decreases. The city pays its employees below market value, according to a 2008 compensation study. Federal Way pays 3.5 percent less than the 50th percentile market value, and 11.7 percent less than the 75th percentile market value, according to the study. Management wished to implement wage increases following the study, but the economy put a damper on the plan.
Both Wilson and Beets recommended holding off on cost-of-living (COLA) increases for staff. Beets indicated COLAs may be possible by next year. Staff may now have to wait until 2011 to 2014 to see a 3 percent wage bump. When COLAs were first discussed in 2008, Beets suggested a growth of 4 percent.
Wilson’s proposed budget was forwarded to the June 2 city council meeting. Duclos said she expects a conversation about the plan among council members at the meeting. She is not completely satisfied with Wilson’s proposed budget and would prefer the city prepare a one-year budget, including cuts, then revisit the document when the economy has improved, she said.
Positions can always be added back later, Mayor Jack Dovey said. The city council and manager are considering cuts because the city is experiencing an emergency, but there is such a thing as too much action, Duclos said.
“I do think you can be over-conservative too,” she said in response to Dovey’s comment.
Learn more
A first reading of Wilson’s proposed budget will take place 7 p.m. June 2 at City Hall, 33325 8th Ave. S., during a city council meeting. A second reading and enactment are planned for the 7 p.m. June 16 city council meeting at City Hall.
