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November 7, 2012 <br /> We have been working hard to preserve essential public services since <br /> revenues began to decline in mid-2008, and the budget balancing <br /> decisions become more difficult with each passing year. Despite some <br /> improvement in the aerospace industry, our economic recovery remains <br /> very slow, due in part to offsetting losses, such as the closure of the <br /> Kimberly-Clark plant in early 2012. <br /> We began the 2013 budget process with a $10.6 million gap between the <br /> General Government's annual revenue and expenditure forecast. Closing <br /> that gap required many difficult decisions. The most significant include: <br /> • committing to holding a minimum of 25 vacant positions open <br /> throughout the year <br /> • establishing monthly contributions for health benefits for elected <br /> officials and appointive employees <br /> • eliminating departmental M&O increases for the 4th year in a <br /> row <br /> • making 2010 temporary budget reductions permanent, and <br /> requiring departments to further reduce spending in 2012 so <br /> that the savings can be used to pre-pay 2013 reserve <br /> contributions; and <br /> • suspending the annual contribution to the LEOFF 1 police and <br /> fire pension funds. Even with this action, the City will still be on <br /> track to fully fund its LEOFF 1 Pension obligation by the year <br /> 2030. <br /> The City is making every effort to minimize the impact that these and <br /> previous budget reductions have on our residents. While we have been <br /> able to avoid some of the more drastic measures other cities have faced <br /> as a result of the recession, it is frankly not possible to continue to cut <br /> funding year after year without having some effect on municipal services. <br /> Whether it is extending the lawn mowing cycle at our parks or a longer <br /> waiting list for sidewalk repair, it is inevitable that our ability to maintain <br /> service levels will be impacted. Furthermore, until we see a trend toward <br /> substantial improvement in our revenues, we must be prepared to take <br /> additional steps to reduce spending to ensure that we will continue to live <br /> within our means and keep Everett on a sound financial footing. <br /> 304 <br />