In a press release from the City of Kent, issued April 6, 2010:

Economic Downturn Triggers More City Service Reductions
Annexation Staffing Plan to Cushion Layoffs

Kent, Wash. – April 6, 2010 – The economy continues to negatively impact the City of Kent’s revenues.  Despite spending cuts of over $6 million, including the layoff of 28 employees last year, Mayor Suzette Cooke recommended an additional $7 million in spending cuts and $100,000 in revenue increases to the Kent City Council on Tuesday.

“The recession is not easing its grip on Kent’s finances,” said Cooke.  “We projected flat revenues for 2010, but tax collections and fees continue to decline below 2009 levels.”

According to Kent’s Finance Director Bob Nachlinger, in closing the City’s books for last year, declining revenues in November and December, and other factors impacted the final 2009 fund balance.

“We can’t control the external environment,” said Nachlinger.  “It’s impossible to know exactly how we’ll finish the year until all the numbers come in.  We receive many of our revenues two months in arrears so I’m unable to close the prior year’s books until March.”

“Although we ended the year with a positive fund balance, it is not at the target both the Council and Mayor requested,” said Nachlinger.  “Besides reduced sales tax, we saw reduced income from revenue sources in many departments.  Utility tax revenues were also down due to our mild winter and people not using natural gas and electricity as they would normally.  The threat of flooding has further slowed commercial activity, and finally, an underpayment of $600,000 by the State’s Department of Revenue for Streamlined Sales Tax mitigation left a huge hole.”

According to John Hodgson, Kent’s Chief Administrative Officer, revenues for the first two months of this year are below last year’s levels and other fund sources are also trending downward, forcing the need to make adjustments now.

“Maintaining a strong fund balance is the goal of the Mayor and Council,” said Hodgson.  “It allows us to make our monthly obligations, which is critical given that revenues don’t come in at equal amounts during the year.”

36% of the City’s General Fund revenues come from property taxes paid in April and October.

Hodgson said he’s been working with department directors over the past two weeks to identify operational adjustments, new revenue ideas and cuts to address the budget situation.

“We reviewed services and looked at what was considered mandatory and required by City ordinance.  We looked at preserving our physical assets, what services were discretionary yet improved Kent’s quality of life, and we looked at levels of service delivery overall.  The fact is it’s very difficult after the elimination of programs and staff reductions we already made last year,” Hodgson said.

“We reviewed the staff reductions recommended by department directors in relation to our staffing needs for when the Panther Lake annexation is effective July 1,” said Hodgson.  “While trying to anticipate and plan services in the annexation area, we’re able to utilize many of those employees, yielding very good, high producing staff there.  Unfortunately, we aren’t able to place seven employees, forcing us to lay them off, or reduce their work hours, at the end of this month.”

Kent’s proposed annexation staffing levels have also been adjusted to reflect revenue shortfalls in the Panther Lake area.  Key annexation positions including police, street maintenance crews, land use experts, prosecutors and courts will continue to be filled.

“While police officers on streets and firefighters on engines will not be impacted, the proposed budget cuts will impact every department and level of service city-wide including the annexation area,” Hodgson said.

Some of the impacts of the proposed budget adjustment include:

• Lay off or reduce work hours of seven employees
• Require Spotlight Series performances to be self-supporting
• Transfer some police officers from special units, e.g. investigations, to patrol
• Transfer some fire fighters in special units to fire suppression
• Reduce development services staff due to continual decline in commercial development
• Eliminate the lunch program subsidy at the Kent Senior Activity Center
• Reduce financial support to the Kent Meridian Pool

Mayor Cooke also proposed doubling the fine for parking violations from $20 to $40 and adding a 5% admissions tax to green fees at the Riverbend Golf Complex.  Pending approval by the City Council, these fees would yield an additional $100,000 per year.

The City Council will review the Mayor’s proposed budget adjustments and will take action later this month or in early May.

Wednesday, February 3, 2010, Kent, Washington–Today Kent Mayor Suzette Cooke gave her annual State of the City Address at the February Kent Chamber membership luncheon. With a packed room at the ShoWare Center, Mayor Cooke revisited 2009.

“This past year was challenging, not just for this city, but for all governments, large and small,” Mayor Cooke said. “Kent, like all cities, worked under a tightening budget.”

She is, however, optimistic about three things:  1) that 2009 is over; 2) the economy appears to be recovering; and 3) flood season is ending. She recounted a number of the city‘s 2009 highs and lows, including:

1)  The popularity of ShoWare Center which brought 350,000 guests through its doors in 2009, including 60,000 guests who saw Disney on Ice at the new sports arena

2)  The implementation of the new CodeRED system which allows the city to make 60,000 emergency contacts per hour via phone, email and text message

3)  The four labor unions taking voluntary pay cuts to avoid staff reductions and to help the city save more than $1 million in 2009 spending

4)  2.8%, or $2.2 million, drop in revenue

5)  8.1%, or $1.5 million, drop in sales tax revenue

6)  Elimination of 56 positions within the city, about half of which resulted in layoffs. Other vacant positions were not filled.

7)  Expansion of Kent Station with the GRCC expansion

8)  1,677 Kent Parks volunteers

9)  4,000 volunteer hours spent removing graffiti

10)  Annexing Panther Lake to occur July 1, 2010, making Kent the sixth largest city in the state

In addition to these items, Mayor Cooke reviewed the 2010 budget, stating that public safety remains the city’s #1 priority. The 2010 budget is 5.6% less than the 2009 budget and it includes $1 million to be set aside for emergencies like potential flooding.

“Things are looking a lot better economically,” she added.

A topic of major concern was, of course, the flood risk of the Howard Hanson Dam. Once predicted at a 1 in 4 chance of flooding, the flood risk has dropped to 1 in 33. While this is a positive step, Mayor Cooke said, a permanent fix is not available for three to five years.

“Any kind of delay is simply unacceptable,” she added. “Until that dam is fixed, it is going to haunt us.”

To help control potential flooding, the city raised levies by three feet, successfully completing the task before the beginning of flood season last fall. In addition, Mayor Cooke thanked the community, business leaders and service groups for helping to spread the word about potential flood risks as well as helping one another fill sand bags and helping seniors and the disabled prepare for a flood.

Mayor Cooke singled out a number of city staff and community and business leaders for their support of the Kent community. She thanked them for their tireless service and for making Kent the great place that it is. One person instrumental in the city’s survival of a difficult year was Chief Administrative Officer John Hodgsen.

“John Hodgsen is an outstanding leader and worker in the city,” Mayor Cooke said.

The overall mood of the meeting was positive and Mayor Cooke left the audience with some new things to watch for:  a redesigned website, taking the inbox newsletter to an email format, and the second annual International Festival, set for June 26, and the Kent Refugee and Immigrant Forum.

“It’s 2010 and I’m smiling,” Mayor Cooke said.

The event was presented by the Kent Chamber of Commerce, sponsored by Allied Waste and co-sponsored by Kent Downtown Partnership. The program was taped to be shown on Kent TV21 at a later date.

This week a mailing went out to King, Pierce and Snohomish County voters from the King County Library System, outlining Proposition 1. This proposition, which is up for a vote on Feb. 9, 2010, would restore the King County Library System’s property tax levy rate to $0.50 per $1,000 of assessed value for collection in 2011.

What will happen if Prop 1 passes?

According to the mailer, KCLS would use the restored revenue to preserve the current level of library service, programs and resources at its 44 libraries and to maintain its outreach services to community centers, low-income daycare facilities and to the elderly and homebound.

What will happen if Prop 1 does not pass?

KCLS will face 10-15% in budget cuts which includes funding for books, computers and building maintenance. In addition, if the levy lid is not lifted, KCLS anticipates that library staff and hours of operation may have to be reduced in future years due to the lost revenue.

For more information, call 425-369-3275 or visit KCLS online.

In a show of support for their co-workers, City of Kent employees (union and non-represented) agreed to take a paycut to help save the jobs of their co-workers. According to a press release issue by the City yesterday, the move helped the City of Kent to bridge a portion of the projected 2009 budget shortfall of $4 million. In addition, the paycuts will help the City to avoid the layoff of 20 positions, saving the City $1.3 million.

Kent Mayor Suzette Cooke:  “I am extremely proud of the compassion and caliber of people working for the City of Kent. Their pulling together for their co-workers is very heartening in this tough economy.  It is this kind of teamwork that will see us through.”

City Administration continues to closely monitor the economy, and in particular, the State of Washington’s projected $8.9 million deficit.  “We are not out of the woods yet,” Cooke said.  “As we see what budget decisions are made in the state legislature we will develop and implement changes to the city’s budget accordingly.”

For more information, contact Michelle Witham at the City of Kent or view this online piece aired by KING5 yesterday.

The Kent School District’s Spring Break is just around the corner. Students, teachers and administration will have the week of April 6 through 10 off.

For more news on KSD, including the community’s input on potential budget cuts, visit the KSD site online.