City Manager T.C. Broadnax Presents 2015-2016 Proposed Biennial Budget

-- Budget Maintains Current Service Levels While Including Funding for Deferred Maintenance and Strategic Infrastructure Investments --

In today's presentation of the 2015-2016 Proposed Biennial Budget, City Manager T.C. Broadnax outlined a plan to maintain current service levels, while directing more money toward street maintenance, repair and capital projects. The City’s total 2015-2016 Proposed Budget is $3.07 billion. $423.3 million is allocated to the General Fund which maintains a financial reserve of 15 percent of annual expenditures. Savings from 2013-2014 will be used to fund one-time reinvestment and redevelopment efforts to cultivate a more walkable community and vibrant business districts. 

“The 2015-2016 Proposed Biennial Budget reflects the City of Tacoma's continued commitment to strong financial responsibility," said Broadnax. "It was developed with a distinct focus on what our community has said it wants, and is a framework for how we plan to deploy City resources to help realize these community priorities."

In the 2013-2014 Biennial Budget, the City addressed a $60 million General Fund budget gap between revenues and expenses by balancing the need for savings with the effective delivery of services.

"Over the last two years, the City carefully reviewed expenditures, monthly financial reports, and methods for monitoring its budget," said Budget Officer Tadd Wille. "As a result, the City is expected to meet reserve goals, set aside savings to fund one-time projects in 2015-2016, and propose a balanced 2015-2016 budget that funds recurring expenses with recurring revenues."

With revenues projected to grow at approximately 2 percent annually over the next two years, the City is identifying areas where fees are not covering costs of service and working to enhance compliance efforts to ensure fair implementation of existing tax codes. Major revenue sources for the General Fund include property taxes, sales taxes, business taxes and utility taxes. 

"The 2015-2016 Proposed Biennial Budget includes over $12 million in enhanced General Fund and capital funding to improve the City’s infrastructure needs," said Broadnax. "It also includes $2.6 million in new funding for a dedicated permanent pothole repair crew to help achieve quicker and longer lasting pothole repairs."

As part of the City’s response to expressed community desires for a walkable community, over $3 million in funding is included in the 2015-2016 Proposed Biennial Budget for citywide sidewalk, pedestrian and trail improvements. 

General Fund and capital funding will be used to leverage grant funding. $2.3 million in City funding for streets and infrastructure will generate an additional $19 million in grant funding from federal and state sources. 

Police and Fire services remain at 2013-2014 service levels. The 2015-2016 Proposed Biennial Budget includes no reduction to fire station staffing or police officers, and fully funds firefighters and police officers that will no longer be funded through federal SAFER and COPS grants. Updates to fees for Fire related services are included in the 2015-2016 Proposed Biennial Budget to help offset the impacts of expiring SAFER grants and maintain Fire staffing levels. 

Also included in the 2015-2016 Proposed Biennial Budget is funding to revitalize city neighborhoods and business districts, support development opportunities for local companies, retain and attract new business, and create jobs for the community. There is also funding to support revitalization and streetscape improvements in key corridors and business districts. 

Through a combination of General Fund and Library Trust funding, the Library System will be able to purchase Radio Frequency Identification tags for all libraries, program software that interfaces with the current integrated library system, and fund one self-check station and security gates for the Main Library.

Investments in deferred maintenance will allow the City to address a backlog of repairs and help improve service delivery to its residents. This includes upgrades to computers and software, $2.8 million to address fleet maintenance for Police, Fire and Public Works vehicles, and $1.4 million for maintenance and facility improvements at the Tacoma Dome and Greater Tacoma Convention & Trade Center.

Existing resources will be used to begin an equity and empowerment initiative, a top City Council priority. An Office of Equity and Human Rights has been created to assist in identifying and eliminating the underlying drivers within the community that perpetuate inequity and provide opportunity and advancement for all. 

While developing the 2015-2016 Proposed Biennial Budget, the City met with staff from every department, held community meetings in each of the City’s five Councilmanic districts and also utilized an online civic engagement platform and survey. The City also rolled out a dedicated budget website and interactive budgeting tool to help community members better understand how the City's finances work and gain an enhanced level of insight into community priorities. 

Details about the 2015-2016 Proposed Biennial Budget, as well as an updated schedule of community meetings taking place Oct. 13-30, is available on the City of Tacoma’s website.