Des Moines faces a 1.4 percent decline in revenue in 2009 compared to the current budget year, city council members have been informed.
"The [city's] revenue forecast for 2009 reflects the economic slowdown," with Washington revenue forecasts assuming "a near-recessionary state in the fourth quarter of 2008 and the first half of 2009," said Finance Director Paula Hammond.
This news follows a report to council members in August that the city has a $2.9 million deficit resulting from emergency road and bridge repairs following landslides last winter, and from unanticipated delays in a one-time payment from the Port of Seattle for the transfer of vacated streets within the planned Des Moines Creek Business Park.
Council members, who expected the payment would be received earlier this year, included it in the 2008 budget. But it has been on hold until the Port, which owns the property, secures a developer and the city agrees to preliminary plans for the business park. The Port's first developer recently withdrew in the wake of current economic conditions nationally.
Hammond said General and Street fund revenues for 2009 are anticipated to total $17.7 million. Of this amount, $10.68 million - 60 percent - is expected to come from taxes, almost $2.5 million from charges for city services, $1.2 million from licenses and permits, $1.17 million from inter-fund revenues, with the balance coming from a variety of other sources.
One-time funds will account for $1.46 million of total revenues.
The forecast for property tax revenue is $2.96 million, an increase of just over $100,000 from this year. That does not include revenue from the property tax levy lid lift for police services, which is calculated separately.
Despite the slumping economy, sales tax revenue is projected to be $1.99 million, up almost $90,000 from this year.
But Des Moines apparently will not benefit from a sales tax distribution program created by the Legislature that was expected to bring additional revenue to the city.
Utility taxes for electricity, natural gas, solid waste, cable television and telephone services are expected to be $3.4 million, an increase of more than $200,000.
"Never have I worked with or even experienced this kind of economy," said Planning and Building Department Director Grant Fredricks.
City Manager Tony Piasecki told council members the city's 2009 revenue forecast currently "changes week to week, day to day."
