The planned expenditure for Tumwater's 2025-26 biennium is $10 million above its revenues, but city staff will continue to explore ways to reduce the gap.
According to a preliminary general fund budget that city staff are developing, the expenditure for the next biennium is $106 million, contrasting with projected revenues of $96 million.
"We think that's too high. So that's why we're going to go back and make some adjustments and bring that down," said Troy Niemeyer, the city's finance director, to the Tumwater City Council on Tuesday, October 22.
The city's fund balance by the end of the biennium would be $13 million, which would still exceed the required ending balance of $9 million. The required ending balance is determined by the costs to keep the city running for two months.
The city's long-term projections show that its fund balance will only fall below the minimum required balance by 2028.
Implementing body-worn cameras would be a significant source of new spending for the city.
The city would have to spend $1.1 million in the next biennium to purchase cameras and software and hire additional personnel to handle data and comply with public record requirements.
Thurston County Medic One, which provides medical emergency services to the county, is also planning for a new unit based in the Linwood Avenue fire station.
Medic One will primarily pay for maintaining and hiring personnel for the new unit. Tumwater will have to contribute around $500,000 in the upcoming biennium for its share of the costs.
Minor sources of new spending include the creation of an equity commission and other programs to help provide human services.
Niemeyer added that they would also study the costs of several projects that the council has been proposing, such as sensory recovery spaces at parks, signage to help fund the restoration of the Brewery Tower, having Morningside staff work at city hall, and drop-off locations for recycling paint.
City staff are exploring multiple ways to reduce the revenue-cost gap.
Niemeyer said they will look to defer maintenance costs and the hiring of new positions.
The city is also considering increasing utility tax on water and stormwater fees from 6% to 12%, which Niemeyer said would bring an estimated $600,000 per year. Once the increase has been implemented, the cost impact to the average customer would be $8.08.
When Councilmember Leatta Dahlhoff asked Niemeyer if this increase covers the increase needed to help the city contribute to the Deschutes Estuary project, Niemeyer said it does not yet.
Niemeyer added that they would bring a resolution this year to the council for that other increase but assured that even with the proposed utility tax increase from 6% to 12% and the increase for the estuary project contributions, the city's water and stormwater utility rate would still be lower than Lacey and Olympia.
Councilmember Joan Cathey commented that increasing utility fees always hurt those who are at the lowest income level.
"It bothers me, and it hurts my heart that we keep raising taxes and feeling like we can just keep raising taxes on fees. You know, that hurts the people at the lowest income level consistently," Cathey said.
Mayor Debbie Sullivan responded that they could develop a program to help those who are in need with their utility bills.
Niemeyer added that the city has a lifeline program that gives low-income customers a 50% discount on utility bills and a hardship program that helps people who are temporarily income-challenged even though they aren't necessarily in a low-income household.
Staff will also consider proposing a levy lid lift to increase property tax by more than 1%.
The state only allows councils to authorize 1% property tax increases. Any increase below the cap is subject to a ballot vote.
In this regard, the city will continue working with its regional partners to push for statewide legislation to raise the cap on property tax increases.
6 comments on this item Please log in to comment by clicking here
Kruz81
IMO Tumwater has been mismanaged for years. Let's look at staffing and ensure that staff are contributing to necessary functions. Yes, necessary, if the city is short $10 million there needs to be some cuts. The fix should not be raising rates, levies, or passing costs along to residents who are already surrounded inflation. I feel you can look at the purchasing of some departments over the last few years and see excessive spending. The sheer amount of PD patrol units is questionable. And I mean those left in the motor pool after shifts are out.
Saturday, October 26, 2024 Report this
1Cochamamba9
1. Public decision makers should be required to demonstrate abilities to balance a budget.
2. STOP corporate welfare! STOP providing builders with obnoxious, long-term tax incentives.
3. Spread the pain. Rather than laying off lower wage workers, implement across the board pay reductions; with higher rates for upper management.
Saturday, October 26, 2024 Report this
ChuckCross
ALL citizens should sit up and take notice of the fact that our cities, and most likely our counties, are ACTIVELY LOBBYING the State legislature, to secure an increase in the allowable annual property tax increase. If you own property in Thurston County, you will have to do your own lobbying with elected officials, to hold the line on property tax increases.
Saturday, October 26, 2024 Report this
Southsoundguy
Buy bitcoin, sell bitcoin muni bonds.
Monday, October 28, 2024 Report this
HotTractor
bitcoin=gambling.
Don't start gambling to fill the gap.
Wednesday, October 30, 2024 Report this
Southsoundguy
Bitcoin is certainly not gambling, educate yourself on the subject.
Wednesday, October 30, 2024 Report this