Shoreline City Manager presents 2011 proposed budget

At the Shoreline City Council’s October 18 meeting, City Manager Robert Olander presented the 2011 proposed budget, which is balanced in all funds and totals $69.9 million.

The 2011 proposed budget consists of two major categories: $36.2 million operations budget and $33.7 capital budget. The 2011 operations budget net one-time accounting transfers has decreased by 1 percent compared to the 2010 budget, while the City continues to experience increases in police and jail costs, health insurance premiums, and state mandated retirement costs.

The proposed budget assumes passage of Shoreline Proposition 1; and therefore, includes $1 million in net property taxes to fund basic services including police, emergency protection, neighborhood patrols and crime prevention; preservation of safe parks, trails, playgrounds, playfields and the pool; and for community services including senior center and youth programs.

“While the recession has resulted in sharp declines of sales tax and development revenue, the most significant financial challenge that the City faces is that property tax levy increases have been limited to 1 percent annually, which has not kept pace with inflation,” says the City Manager.

The cost to fund day-to-day City services, in inflation adjusted dollars, is approximately $461 per resident, nearly 10 percent lower than in 2000. The City has had to do more with less given that inflation has grown 28 percent since 2000.

On the November 2 ballot, the City is asking voters for an increase of $.28 per $1,000 assessed valuation. If Proposition 1 were approved, it would restore the City’s regular property tax levy rate to $1.48 per $1,000, which remains under the $1.60 legal limit.

If Proposition 1 were to fail, it would result in approximately $15 million in significant service and program cuts over the next six years. The City Manager will submit a revised adoption schedule in November in the event that Proposition 1 fails.

There are several initiatives, including Shoreline Proposition 1, on the November ballot that could impact the 2011 budget. This proposed budget does not take into account liquor initiatives 1100 and 1105 and King County’s Proposition 1 (0.2 percent sales tax). The City’s long-term projections would need to be updated to include this revenue loss and/or revenue gain.

The budget adoption process includes three public hearings: November 1, 8, and 15, with final adoption scheduled for November 22. All meetings start at 7:00 pm and take place at City Hall. The City Council encourages the community to provide input.

For more information about Shoreline’s budget, visit the City website.