Passing a budget during tough economic times isn’t easy and members of the Enumclaw City Council made adjustments to their 2011 spending plan until moments before adoption.
The plan all along was to adopt a budget Dec. 13 and that goal was successfully met. In the hour before adoption, however, the council added money for two social service agencies and chopped in half a proposed tax increase.
In the end, the coming year’s budget was approved 6-1, with Councilman Mike Ennis – who took a firm no-new-taxes stance – casting the lone dissenting vote.
The last-minute discussion centered upon a proposed increase in the tax levied on natural gas purchases. The proposed budget, drafted by city administration, called for an increase from 4 percent to 6 percent in the tax rate, a move that would have generated $91,000.
Pointing out that a previously-identified reserve fund had been met, Councilman Jeff Beckwith argued that the additional money, if collected, should be returned to citizens in the form of services. It was the same approach he had taken Nov. 23 when he successfully argued that Plateau Outreach Ministries and the King County Sexual Assault Resource Center should receive city funding.
The second time around, Beckwith again asked his council colleagues to fund a series of efforts. The council added two more to the funding list, granting $15,000 to Auburn Youth and Family Services for operation of the city youth center and $1,000 to the YWCA to support its efforts in the area of domestic violence.
Beckwith had made other requests but was rebuffed. He had suggested adding $15,000 to support a small-business program administered by Green River Community College; $10,000 to enhance efforts to create a historic district in downtown Enumclaw; $10,000 so the public library could purchase additional materials; and $4,000 so the city’s Parks and Recreation Department can continue offering popular offerings like December’s Magical Morning, the annual Halloween party and an Easter egg hunt.
The council rejected those four proposals, which could have been funded from the proposed natural gas tax increase, Beckwith said.
As part of the budget negotiating, Beckwith suggested the increase in the gas tax was not necessary, an idea that failed by a 4-3 margin. Later, the council agreed to implement just half of the proposed increase. Beginning in January, the tax on natural gas will jump from 4 percent to 5 percent, bringing the city another $45,000.
In other Dec. 13 action related to city spending and collections, the council:
• agreed to secure $45,424 in “banked capacity.” That sum represents money the city could have previously collected in property tax but did not. Instead of missing out on the money, state law allows cities to collect the cash at a later date. There’s no obligation to collect the funds, but the city retains the right to do so in subsequent budgets.
• set a 2011 property tax levy that calls for the 1 percent increase allowed by law. In addition, the city will collect money stemming from new construction, plus a small amount that represents a financial adjustment made by King County.
• authorized a 5.4 percent decrease in the cost of natural gas for city customers and a 3.5 percent increase in the water rate. The gas decrease stems from a drop in prices in the open market and a favorable contract the city was able to obtain. The water hike is caused by decreased usage, Public Works Director Chris Searcy explained. When less water is purchased, the rate has to increase so the department’s budget can be met, Searcy said. He added that a 3.5 percent bump in the rate will likely be suggested for 2012 and 2013.
Ennis has argued that voters made it clear during the November election they are fed up with additional taxes.
“Still, we raised taxes in two areas,” he later said, citing the 1 percent increased in both the property tax and natural gas tax. “They’re not significant, but they were still increases.”
