City Weighs Where to Cut $3M

—grappling with their worst budget crisis in nearly 40 years—is urging City Council to wield the budget axe and cut approximately $3 million in operating costs.

According to a city press release, lagging revenues brought on by the recession have created a projected $2.9 million shortfall in 2011 and a slightly larger shortfall in 2012. To address the shortfall, City Hall is proposing a biennial budget that includes spending reductions as well as new sources of revenue. The next budget hearing is tonight at 7 p.m., followed by another hearing on Thursday, Nov. 4.

"The City is working hard to help maintain the high quality of life Mercer Islanders enjoy to the extent possible in the current economy," said City Manager Rich Conrad. "Staff have put together a proposed budget that maintains essential services that help ensure the welfare and safety of the community while reducing some non-essential services. Although Mercer Island is faring better than other cities, the Council still has some tough choices to make."

The press release also states the city prioritized "essential" public safety services and proposed cutting $2 million in spending, including the elimination of employee cost of living adjustments (COLA). Conrad also proposed eliminating 7.15 full-time-equivalent (FTE) jobs in 2011, or 4% of the city's workforce.

According to the press release, Mercer Island City Council will meet at City Hall to also consider the following major program and service reductions that include:

• Eliminating the City's tree planting program
• Reducing maintenance levels at specific fields, public restrooms, and other parks facilities
• Ending the City's subsidy for the fireworks show at Summer Celebration
• Eliminating the following City-sponsored events and activities: Mostly Music in the Park, Shakespeare in the Park, Outdoor Summer Films, Spring Egg Hunt, Arts Council Winter Dance, Family Valentine Winter Dance, Volunteer Recognition Party, Fun Mobile, and Adventure Playground
• Ending off-Island contracts with providers for the following programs: Reinvesting in Youth, King County Sexual Assault Center, and the Children's Response Center (the proposed budget will preserve nearly all Mercer Island Youth and Family Service programs and services)

Also proposed is $544,000 in revenue increases. The City Council will also deliberate on the following new revenues:

• Increasing property taxes by 1% (about $12 per year per household)
• Implementing a fee for ambulance transport, a service currently provided by private ambulance transport companies at an average cost of $800 per transport
• Increasing building fees so that they more accurately reflect building costs on Mercer Island
• Instituting an access fee for the scheduled use of the City's athletic fields
• Increasing room rental rates at the Community Center at Mercer View
• Instituting development fees related to Fire Marshal plan review and building permits

"Interested Mercer Islanders are encouraged to participate in this open, public process as the City Council considers the spending cuts and new revenues proposed in the 2011-2012 budget," Conrad said.

Remaining City Budget public hearings:

• Nov. 1 - Regular Council Meeting, 7:00pm—Public hearing: preliminary budget review of other operating funds (beautification, municipal arts, Mercer Island Youth and Family Services Department, equipment rental, computer equipment, contingency, and firemen's pension funds)
• Nov. 4 - Special Council Meeting, 6:00pm—Public hearing: Preliminary budget review of criminal justice fund and general fund (City Council, City Manager's Office, City Attorney's Office, Finance Department, Fire Department, Human Resources, Maintenance Department, Municipal Court, non-departmental and Police Department operating budgets)
• Nov. 15 - Regular Council Meeting, 7:00pm—Public hearing: Preliminary budget review of general fund (Parks and Recreation Department and Development Services Group operating budgets, follow-up items, adoption of 2011 property tax levy, adoption of 2011 utility rates, adoption 2011 development fees)
• Dec. 6 - Regular Council Meeting, 7:00pm—Adoption of 2011-2012 Final Budget

Mercer Islanders can also comment on the budget by sending an email to customerservice@mercergov.org.