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CONTACT THE HERALD
Robert Frank, City Editor
frank@heraldnet.com
 
Published: Friday, October 3, 2008

Edmonds budget crunch could mean taxes, cuts

EDMONDS -- Mayor Gary Haakenson proposes raising some taxes and keeping current city job openings vacant in his 2009-10 budget.

But the budget released Tuesday does not call for any job cuts.

To meet what was an expected $5.4 million shortfall, Haakenson would raise utility taxes and cable television taxes, which together would cost the average Edmonds taxpayer $86 a year, Haakenson said. The budget also calls for raising property taxes 1 percent.

"We simply can't continue to offer the services that we have historically offered to our citizens without new revenues," he said in his budget address. "Over the past seven or eight years, we have been creative -- and lucky -- with our revenue streams, allowing us to reach 2008 in sound financial shape.

"But now, the tough calls have to be made," Haakenson said.

Haakenson also raised questions about the future of the Edmonds Fire Department.

Long-term, the city's financial health requires Edmonds to join a regional fire authority instead of running its own fire department, Haakenson said. Such a move would save the city $4 million a year, he said.

Regardless of the fire department's fate, the city's budget demands drastic action, Haakenson said.

For years, as labor costs have risen, the city's margin for error has shrunk, he said.

Now, rising costs and the city's inability to raise taxes at the same pace have put Edmonds in a position where it must act, Haakenson said.

The cost of salaries and benefits for city employees are expected to rise 37.9 percent from 2002 to the end of 2008. During that time, the city has added only one full-time employee, said Debi Humann, the city's human resources director.

In the same time frame, property-tax collections have grown only 26.6 percent.

While Haakenson framed the budget discussion as a choice between increased revenues and decreased services, some council members called for the city to expand its services.

Councilman Dave Orvis, the council's representative to the Snohomish District, said Edmonds should spend $150,000 fully funding public health.

"The bottom line is, I'm not interested in reducing public safety in any way, and that includes public health," Orvis said. "I would prefer to raise revenues than to cut in those areas."

Whatever the final solutions, the budget clearly deserves a lot of attention, City Council President Michael Plunkett said.

"We have to be open to looking at everything," he said. "I am staying open, loose and flexible."

Others agreed.

The council is scheduled to meet for a public workshop on the budget next Tuesday. Its first public hearing on the budget is Oct. 21. Officials have until later this year to approve it.

"I genuinely appreciate time to review this in these belt- tightening times," Councilman Steve Bernheim said.

Reporter Chris Fyall: 425-673-6525 or cfyall@heraldnet.com.

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