Ordinance 3637-18 - Laserfiche WebLink

ORDINANCE NO. 3637-18 AN ORDINANCE adopting the budget for the City of Everett for the year 2019. WHEREAS, Everett's revenue growth, like most cities and counties in Washington State, is not keeping pace with expenditure growth. The City has faced an ongoing structural deficit in its general government budget since the passage of Initiative 747 in 2001. Throughout the recession,the City balanced the budget through a combination of actions, including deferring maintenance on City properties and facilities, deferring investments in capital improvements and vehicle replacements, deferring contributions towards long-term obligations, and eliminating vacant positions through attrition. The City implemented an initial series of fee and rate increases in 2014,as well as targeted service reductions. A surge in construction activity in 2015 and 2016 also boosted revenues, allowing the City to restore contributions to reserves and long-term obligations and begin addressing deferred maintenance and vehicle replacements. The positive revenue trend began to change in 2017. Construction activity returned to a more normal level, and the continued shift of Everett's tax base to the north and east of the city further impeded revenue performance. The City currently faces a projected deficit of$10.9 million in 2020, growing to $20.6 million by 2023. In early 2018, Administration prioritized addressing the structural budget deficit in a comprehensive, sustainable way through a series of actions laid out in a Mayoral Directive. In collaboration with the City Council and with input from City staff, Administration identified more than $5.6 million in ongoing spending reductions through the 2019 budget development process. Administration also reorganized staff teams to consolidate functions to improve operational efficiency and effectiveness, and reassigned positions to promote greater transparency in the cost of services. Beyond the changes that will be implemented as part of the 2019 budget,the City Council and Administration support exploring alternative funding and delivery models for major City services. Everett continues to provide a wide range of programs and services that most Washington cities no longer offer. Given the tremendous growth our city and region continues to face,we must innovate in order to expand and improve those services in a way that is more resilient and regionally connected and encourages the growth and economic development we want. Taking action now will help protect the quality of life for residents and enhance the City's ability to attract and retain businesses and has the potential to minimize future service reductions. The City Council and Administration support conducting a comprehensive review and evaluation of City services,to include, at a minimum: • Development of procedures and processes for City Council and Administration collaboration that emphasize transparency and public engagement;