Laserfiche WebLink
• <br /> October 27,2004 <br /> STRATEGIC OUTLOOK <br /> The City of Everett.like most cities,has endured an extended period of <br /> declining or stagnating revenues as a result of the national recession end • <br /> voter Initiatives.In 2005.for the first time in four years,we expect to see <br /> our revenues <br /> a positive direction.The brighter revenue picture <br /> combined with the proactive expenditure reductions we made in March <br /> enable me to present to you a budget that proposes no service cuts or <br /> reductions In workforce. <br /> While it is encouraging to see our local economy begin to turn around,we <br /> must be mindful it is unlikely we wgl ever experience the type of growth <br /> seen in the late 19906 because of legislated limitations. As we look <br /> ahead,our forecasting model continues to project gaps between annual <br /> revenue and expenditures that we must resolve to assure that the City will <br /> tinue to live within its means. <br /> Topping the list of issues that threaten the City's financial future is the <br /> high cost of employee health benefits.The double-digit increases that we <br /> have experienced over the past few years are placing an enormous strain <br /> on City resources. We have been working hard to develop creative <br /> solutions to this serious problem and will seek to implement changes <br /> through collective bargaining. <br /> The alarming trend In our active employee health benefit costs extends to <br /> our police end fire pension plans.These rising costs work directly against <br /> our best efforts to fully fund the pensions by the year 2020 so that the <br /> burden Is not passed on to future generations.A new actuarial study will <br /> be commissioned In January of 2005. Based on the experience of the <br /> past two years,we fully expect the increase In annual conMbutions <br /> required to maintain the 2020 target date wit be revised sharply upward, <br /> thereby placing additional pressure on our operating budget <br /> IN CLOSING <br /> The proposed 2005 budget maintains our commitment to core City values <br /> and priorities. We are maintaining funding levels for public safety. <br /> investing in our infrastructure,and continuing our work in economic end <br /> community development I went to thank City Council and our dedicated <br /> City employees for consistently making the best use of our limited <br /> • <br /> • <br /> 340 <br />