While the city of Des Moines struggles with choosing between police and parks in adopting next year's budget, the city of SeaTac managed Nov. 24 to introduce its proposed budget, hold a public hearing and adopt the budget in one night.
The city plans to spend $16.2 million more than it takes in. But that will still leave it with $48 million in reserves. In all funds, the city has budgeted $76.3 million in expenditures and expects to receive $60.1 million in revenues.
In the general operating fund, the city expects expenditures of $29.2 million and revenues of $28.2 million. That will reduce the general fund reserves by about $953,000, down to $7.8 million.
Finance director Mike McCarty said the reserves could cover three months of operating expenses. The city's past policy was to have four months of reserves on hand but the general recommendation is to have one to two months of operating expenses in reserves, according to McCarty.
McCarty said the budget would maintain current service levels with no layoffs expected.
City staffers will receive 2 percent raises but must take five unpaid furlough days next year.
The city plans to spend $16.2 million on its two light rail station areas, including $14 million to acquire the Dollar surface parking lot at South 176th Street and International Boulevard, next to the new airport/city center light-rail station.
Lawmakers condemned the property last month and plan to build a parking garage on the spot. The facility would serve patrons of a planned downtown entertainment district. The city will hold an open house on the downtown plan on Dec. 7 at the Holiday Inn Conference Center, 17338 International Boulevard, form 5-8 p.m.
John Houlihan, attorney for the Dollar owners, said the city is planning to pay for the entertainment district project through a $30 million bond. SeaTac taxpayers may have to pay an additional $20 car tab fee and 2 percent utility tax, Houlihan said.
Acting City Manager Todd Cutts noted that the new taxes are only one option being discussed. A bond would not be proposed until 2011, he added.
Recalling a campaign promise he made 12 years ago, Deputy Mayor Gene Fisher said he could not vote for the budget because yearly expenditures would be more than yearly revenues.
Newly sworn in councilwoman Pam Fernald said she did not have enough information on the city's capital improvement plan to approve the budget.
Mayor Ralph Shape as well as council members Chris Wythe, Tony Anderson and Mia Gregerson voted to approve the budget. Councilwoman Terry Anderson was absent.
