Information included in a July 2 article by reporter Eric Mathison in the Highline Times may have been confusing to some readers. The article titled "SeaTac retreats from entertainment district," was reporting on information presented to the SeaTac City Council at the June 22 Council Meeting.

This information related to a proposed budget amendment that, in part, removed the 2010 budgeted expenditure appropriation amounts for various capital expenditures in the SeaTac/Airport Station Area in accordance with previous City Council actions. It was more than anything else an accounting mechanism.

In the first three sentences of the article, it was stated, "The City of SeaTac will receive $9 million less in estimated revenue this year. But SeaTac lawmakers also voted June 22 to not spend $18.1 million in capitol (sic) expenditures that were part of the original budget. That left a net gain of $9.1 million."

While it is true that the proposed budget amendment results in a net decrease in estimated revenue of approximately $9 million, this $9 million represents transfers of existing resources from other funds in the City to the fund that would make the capital expenditures related to the SeaTac/Airport Station Area.

It did not represent an expected revenue source (property tax, sales tax, parking tax, etc.) that the City was now not going to receive.

It should also be clarified that the reduction in capital expenditures is $9.1 million, not the $18.1 million reported in the article. $18.1 million was the net decrease in total expenditure appropriations, and included the $9 million transfers out of two City funds to the fund that would actually make these capital expenditures.

In essence, the $9 million budgeted as a transfer in ("revenue") and as a transfer out ("expenditure") was an accounting transaction budgeted to affect the transfer of $9 million out of two funds into the fund making the actual capital expenditure.

Because the $9.1 capital expenditure wasn't going to occur, it made sense to delete both the $9 million being transferred between funds to pay for it, as well as the $9.1 million capital expenditure itself, from the 2010 Annual Budget.

Mike McCarty
Finance and Systems Director
SeaTac