Mayor’s budget: prudent and compassionate
SEATTLE – Mayor Greg Nickels today presented his 2010 proposed budget to the City Council. This is his eighth and final proposed budget and reflects the four priorities he established when he took office: public safety, transportation, strong families and healthy communities, and jobs and opportunities for all.
Despite a global economic crisis that resulted in lower revenues from many of the city’s funding sources, Nickels’ budget adds new patrol officers, continues work on fixing the Mercer Corridor, and spends more on human services than all other cities in Washington combined.
“The good news is that Seattle has not and will not suffer draconian cuts to basic services,” said Nickels in his annual budget speech in Council Chambers. “We are strong despite the storm. And I promise you: Seattle will lead the nation to a cleaner, more progressive, more prosperous future.”
The latest revenue forecasts project a $72 million revenue shortfall in the general fund’s 2009-2010 biennial budget, the result of lower revenue, particularly sales and business taxes. To balance the budget, Nickels proposed cuts of roughly 4.4 percent from the endorsed 2010 budget, or about $41 million.
The proposed budget eliminates approximately 310 positions citywide, and reduces the number of city vehicles. Last month, members of 14 Coalition of City Unions agreed to 10-day unpaid furloughs for 2010, saving an estimated $6.5 million from the General Fund.
The city will also use $25.4 million from the Rainy Day Fund, leaving about $5 million for the future.
Nickels’ budget does not raise taxes. In fact, Nickels and two councilmembers proposed repealing the employee hours tax, now pending before Council. Nickels also approved legislation to raise the B&O tax threshold to $100,000 starting in 2010.
The proposed budget assumes an 8.8 percent City Light rate increase on Jan. 1, 2010, which is included in legislation being submitted to Council. The rate increase is driven by lower wholesale energy sales, increasing costs (such as federal licensing), and general inflation. To reduce the size of the increase, Nickels eliminated 68 full-time equivalent City Light positions.
If adopted, City Light’s rates would still be lower than in 2002, when Nickels took office. And City Light has dramatically improved its financial situation since the West Coast power crisis in 2000 and 2001:
| 2002 |
2008 |
| Rates: 6.30 cents per kWh |
Rates: 5.64 cents per kWh |
| Bond rating: A+ (S & P) |
Bond rating: AA- (S & P) |
| Net Income: -$1.9 million |
Net Income: $131.6 million |
| Metric tons of greenhouse gas emissions offset: 0 |
Metric tons of greenhouse gas emissions offset: 64,345 |
Despite budget reductions, City Light is proposing to continue expansion of its conservation programs in 2010. In fact, simple conservation measures can offset the rate increase for many households. For example, an average residential customer can offset the increase by replacing 10 incandescent lights with high-efficiency bulbs or other conservation measures.
Other budget highlights include:
- Adds 20 new patrol officers in 2010, keeping Seattle on track with Nickels’ plan to have 154 new officers on the streets by 2012.
- With funding from the voter-approved Fire Facilities and Emergency Response Levy and other city funds, the Fleets and Facilities Department will continue to replace and remodel almost all of Seattle’s fire stations. In the 2010 Proposed Budget, nine neighborhood stations will be under construction in 2010 and land will be purchased for a new site for Fire Station 20. Also in 2010, the “Chief Seattle” fireboat will be refitted.
- Continued work on the Alaskan Way Seawall, some utility work, and additional planning to support the state’s replacement of the Alaskan Way Viaduct with a deep-bore tunnel.
- Funding for the Mercer Corridor – East Phase project and also the Mercer Corridor – West Phase project that connects Mercer Street to the north end of the proposed deep-bore tunnel and improves traffic flow between Elliott Avenue West and Interstate 5.
- Continued funding for the Seattle Youth Violence Prevention Initiative to provide high-risk teens a better future.
The City Council is expected to adopt a 2010 budget by the end of November.
“We will stay true to the things that are important: we will continue to focus on public safety, help our most vulnerable, solve transportation challenges and prepare to take back our waterfront,” said Nickels. “With this budget, we will make a positive difference in people’s lives, just as we have for eight years.”
Links to the 2010 proposed budget, 2010-2015 proposed capital improvement program and other budget-related materials are available at mayor.seattle.gov.
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Office of the Mayor
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