Federal Way is preparing to adopt a 2009-2010 mid-biennium budget that reflects more staff layoffs, but maintains a consistent level of public services.
“This budget will not reduce service to our citizens,” interim city manager Brian Wilson said.
Wilson projects a $562,000 revenue deficit next year. Most revenues, largely tax generated, are expected to continue decreasing next year. Liquor profits and excise tax, recreation fees and red-light photo revenue are the exceptions, according to the 2009-2010 mid-biennium budget amendment document.
Costs for ongoing new programs are expected to increase by $248,850. The costs include public defender services, technology upgrades and invasive species removal, among other things.
“The economic rebound has not hit Federal Way yet,” Wilson said.
Wilson and staff predict a $780,000 annual deficit will begin in 2010 and last through 2014. A 2009 general fund balance of $6.8 million will be applied to offset the annual deficit and balance the budget until the economy recovers, Enge said. At the end of 2014, a balance of $2.9 million will remain in the general fund, he said.
City staff feel the impact
In an effort to balance the 2010 budget, each of the city’s eight departments will see cuts of varying degrees: City manager’s office, public works, community development, information technology, law, municipal court, police and parks and recreation. The cuts total $825,505.
Some of the cuts come in the form of layoffs. A senior planner in the community development department and a traffic engineer in the public works department will be laid off. A volunteer coordinator position will drop from a full-time status to a 36-hour work week. A position within the IT department will be reduced from full time to part time. These measures will save $207,424, according to the document.
Other positions will remain vacant or in a frozen status. A community services supervisor and a records specialist position, each with the police department, will not be filled this coming year. A hiring freeze is placed on another records specialist and a street manager position in the public works department. A total of $324,072 will be saved through these actions.
A police officer position will also remain frozen. In mid-November, Wilson was optimistic the position could be restored. By December, updated sales tax and permit fee figures were received. The revenues were expected to be low, but they came in lower than predicted. The police position will now remain frozen to offset the lack in revenue, financial services administrator Bryant Enge said. This will save $101,100.
“The numbers we had originally estimated in the terms of sales tax were not as deep of a cut as we needed to make,” Enge said.
Other departments are cutting back wherever there is room. The city manager’s office will discontinue the print edition of its newsletter. The letter will be published online. In the law department, temporary help for contract attorneys will be eliminated. Temporary help in the municipal court will be decreased. The parks and recreation landscape maintenance contract will be reduced. These measures will save the city $147,788. Smaller cuts across many of the departments total another $45,121.
The suggested budget adjustment was first presented to the city council on Nov. 17. A second public hearing on the topic was held Dec. 1. The council is scheduled to pass the budget at its 7 p.m. Dec. 15 planned meeting at City Hall, 33325 8th Ave. S. Public comment will be taken at that time.
