While King County and neighboring cities are struggling to balance their budgets, Burien’s staff is telling the City Council they do not need an additional one percent from property taxes next year.
Burien is expecting to end the year with a fund balance of $2.5 million. The fund balance at the end of 2011 is expected to be $500,000 higher, at $3 million. Even with additional services and expenses associated with annexation of the north Burien area, the city’s revenues next year are estimated to be $1 million more than their expenditures.
Burien expects to bring in $41 million in revenues next year. The majority of those revenues come from property and sales tax.
Burien is expected to see a $1.5 million increase in property tax, $4.3 million in 2010 to $5.8 million in 2011, due to the annexation. The majority of the property in the North Highline area is residential.
Sales tax revenues in Burien are expected to dip slightly next year, from $5.1 million in 2010 to $4.9 million in 2011.
Sales and property tax together make up nearly 60 percent of revenues for the general fund.
When the King County Assessor initially gave the city the property values of the city, Burien would have been making too much in property tax to raise it the one percent they are legally allowed to each year. But the assessor just came back and told the city the property values were lower then they stated at first.
This lower number would allow the city to add one percent in property taxes next year, raising $70,000.
“I think it is important to show our citizens we are prudent managers, for the most part, of their money,” Councilmember Jack Block Jr. said.
City Manager Mike Martin has not proposed any major cuts for next year. In a couple of cases he is asking council to spend more money.
City staff have not received a cost of living adjustment (COLA) for the last couple of years. Martin is proposing a one-percent COLA next year, and has tentatively scheduled a two percent COLA in 2012.
Martin has said Burien does not pay as competitively as other cities, but workers are happy in Burien because they know they will have a job.
Martin is also asking for $100,000 over the next two years to look into bringing the Burien police force in house. Currently Burien contracts with the King County, using King County Sherriff’s for their police force. Each year the contract increases by five percent, something that Martin has said is unsustainable. A study would determine the feasibility of bringing those services in house.
Currently 54 percent of the city’s budget is spent on police, jail and court expenses. At $21 million a year nearly all of the city’s revenues from sales and property tax go into paying for police and court services.
The council will likely approve the budget at the next council meeting on Nov. 22.