2015-2016 City Budget: Balanced, With Subtle Undertones of Optimism

On Tuesday Tacoma City Manager T.C. Broadnax presented his proposed budget for the City for the 2015-2016 biennium to the City Council.

Broadnax's budget is balanced, covering on-going expenses with recurring revenues - no small feat considering the challenges facing the City budget.

Those challenges include an existing structural imbalance between the City's revenues and its expenditures. If current levels of services provided and revenues collected were left alone, that imbalance would lead to a $6 million gap in the next biennium. Adding deferred maintenance and other new or enhanced services requested by the community or City partners, could grow that gap to as much as $48 million.

Overall, economic conditions show gradual improvement; in recent years (since 2009) the City has seen annual revenues increase on average by only 1.22%, but that increase in revenues is forecast slightly higher, at a still modest annual average of 2.54% for the next biennium.

Staff also expects the 2013-14 biennium to end with a $14 million positive difference between revenues and expenses. That one-time surplus savings will go toward one-time investments and redevelopment to make Tacoma business districts more vibrant and walkable.

The proposed budget includes some, but not all of the identified deferred maintenance and other services, making strategic cuts elsewhere, adding and increasing some fees, and maintaining a 15% strategic reserve. By bringing recurring expenses in line with recurring revenues means that the budget as proposed should be structurally sustainable over the long-term. 

Customers of Tacoma Public Utilities will see increases over the next biennium, generating increased revenue. Other revenue increases are expected to come from increased tax and license compliance enforcement, and the implementation of fees for some Tacoma Fire and other services. The City is looking at areas where fees are not covering costs of service, and working to enhance compliance efforts. The City is also in the process of reviewing employee healthcare benefits and implementing an employee wellness program.

Some highlights of the proposed 2015 - 2016 budget:

Infrastructure 

• $3.1 million in citywide sidewalk, pedestrian, and trail improvements
• $2.6 million for the creation of a 5 man permanent pothole repair crew that will provide an increased number of permanent pothole repairs 
• $2.3 million in grant matches that will generate $19 million in federal and state grant matches for projects including the Water Ditch and Prairie Line trails, street infrastructure for 56th and 48th streets, the Puyallup River Bridge, and Stevens and Tyler bicycle and pedestrian improvements

Public Safety 

• 58% of the general fund goes to public safety
• No cuts to police officers or fire station personnel
• $290,000 for increased security related to the 2015 US Open
• $80,000 to continue the predictive policing program
• $200,000 to continue the rapid graffiti removal project 

The Fire Department will also be looking at ways to offset costs by implementing fees for some services, including fire inspections, advanced and basic life support transport, and fire hydrant service fees. This last, if implemented, would appear on your water bill as a charge of between $2.25 and $2.50, generating about $2.2 million for the City.

Economic development

• Revitalization and streetscape improvements - $4.2 million for the Lincoln Business District (only $500,000 from the General Fund), and  $1 million for South Tacoma Business District
• $360, 000 for the Neighborhood Council Innovative Grant program
• $400,000 for a new catalytic economic development fund to leverage private funds for enhancements like pedestrian connections, landscaping, sidewalks and other street improvements. This fund would go to off-site improvements associated with private sector projects.
• $100,000 for UWT law school support

Libraries

• $400,000 for RFID implementation phase 1 in Tacoma libraries ($200,000 from the general fund) – tagging all materials, and for one self-checkout system, security gates for main library

Deferred maintenance

• Replace $2.8 million worth of vehicles – 45 TPD patrol, one TFD pumper truck, and one water truck
• Facilities improvements - $900,00 for event restrooms and wayfinding signage at the Tacoma Dome, $450,000 for replacing exhibit hall lighting at the Convention Center, and $1 million in performing arts theaters continued maintenance.
• $6.2 in IT infrastructure ($2.5 million from the general fund) for computer replacements, SAP business initiatives to drive efficiency, and enhancements to improve records management, search functions, storage, etc.

NOT in the budget

• $5 million for a new Eastside Community Center. There is, however, $2 million earmarked in capital reserves for the project, when it is ready to move forward.
• $10 to $15 million for Link Light Rail expansion due to timing, which will put construction out past the end of the 2015-16 biennium.
• $5 to $10 million for Broadway Center funding. The minimum commitment of $5 million is beyond what the City can do at this time.
• $10 million for new Tacoma Dome Seating
• $500 million for citywide residential street construction

Conversations on finding funding for all of these items will continue, but the money isn’t there right now.

For more on the budget, you can watch the October 7 study session presentation online, download the budget (with lots of nitty gritty numbers, and some good looking graphics) and budget presentation slides, or join one of three upcoming community meetings on the budget.

• Monday, October 13, 6:00-8:00 p.m. at Evergreen Community College, 1210 6th Avenue (Citywide meeting, Mayor hosting) 
• Wednesday, October 22, 6:00 - 8:00 p.m. at Wheelock Library, 3722 North 26th Street (Regional meeting for North End, New Tacoma, West End, and Northeast Tacoma)
• Thursday, October 30, 6:00 - 8:00 p.m. at Lincoln High School, 701 South 37th Street (Regional meeting for Central, South Tacoma, South End, and Eastside) 

There's plenty in the budget to consider, especially if you want to get into the weeds with the full budget document. A balanced budget is a good thing, as is beginning to address some of that deferred maintenance we've been hearing so much about. Streets maintenance, especially potholes, has been the hot topic for the budget this year; this budget begins to address the issues, but it's only a beginning... 

It's a big budget - what do you see that gets your attention?