It’s almost time to ring in the new year – and with it, a new city budget.
The Enumclaw City Council passed its $90 million-plus budget on Nov. 25, and with it, some cuts and tax increases.
With an expected $950,000 deficit looming over the city, “Countless hours of discussion in their committee were dedicated to the 2025 budget and what the city knew early in this year, could affect city operations,” Mayor Jan Molinaro said in his introduction to the budget. “…. Changing the structure of this budget for not only 2025 but for future budget years, the council and administration tasked ourselves to figure out the best, most stable approach that would benefit both our staff as well as our entire community.”
Part of those structural changes is cutting three and a half positions as a way to also save general fund cash, as wages and benefits are the largest expenses.
However, no one was laid off: one custodian retired; one park maintenance rover transferred to a different job funded by utilities; and a building inspector position was frozen in 2024 and is now off the books.
“Completing the 2025 city budget has been the most challenging our staff has had for the last 7 years. Market forces from all angles converged at once to challenge each department and council in making decisions that affect not only the community in the long term, but also some city staff,” Molinaro continued. “Is the city on a more stable path for future budget years? I would like to think that what has been done these last several months would provide some stability for future years, though I cannot say with certainty that when we begin the budget process for 2026 in July of 2025 that we could be facing similar circumstances experienced these last 2 budget cycles.”
THE GENERAL FUND
While the city has a total budget of $90 million, what arguably matters most is the general fund, which covers everything from salaries and personal benefits to outside agency funding (like nonprofits).
Expected revenue for the general fund operating funds comes to $14.75 million which, while more than last year, gains have been shrinking.
When comparing actual revenues together, or to year-end estimates (as opposed to budgeted revenue, which can change as income shifts over the course of 12 months), revenue steadily grew from 2020 to 2023.
Income grew 6% from 2020 to 2021, then 7.4% between 2021 and 2022 and 8.4% between 2022 and 2023.
However, revenue from 2023 to last year grew just 3.5%, and this year, revenue growth has been budgeted to only grow 0.6%.
It should be noted that Enumclaw has consistently exceeded its estimated revenue since at least 2020 by half a million or more.
With shrinking revenue increases, Enumclaw has worked at cutting expenses.
Actual expenses shrank from 11.2% from 2021 to 2022; 7.75% between 2022 and 2023; 4.89% between 2023 and 2024. Expenses are estimated to grow just 0.13% this year.
And unlike estimated revenues, expense estimations tend to be far more accurate, being off by $400,000 or less.
Some saving have come from shrinking wage increases. After yearly salary increases from 6.5% and 7.5% between 2021 and 2024, budgeted salary expenses are estimated to grow just 1.4% this year. The elimination of the building inspector, custodian, and parks maintenance rover positions kept these expenses down.
Additionally, the city is aiming to have virtually 0% increases in personal benefits expenses from last year.
PROPERTY, SALES TAXES
Most of the city’s general operating fund revenue comes from various taxes, including property taxes.
Last year was the first time since 2014 that the city took the opportunity to raise the property tax rate, and it did so again this year.
State law requires municipal governments and other public agencies allowed to collect their own property taxes to only collect 1% more than the previous year (or the percentage of the Price Deflator, whichever is less).
With the tax rate increased from $1.08 to $1.1 per every $1,000 in assessed property, individuals with $600,000 in assessed property can expect their tax total to increase from $648 to $660.
That may not be much for homeowners, but the tax rate increase is expected to bring in $3.12 million this year, a 14% increase over last year, thanks to new construction and increasing total assessed values.
However, sales tax revenue is expected to decrease by 8% for a total of $4.9 million, and the $38,600 loss is enough to wipe out the property tax gains.
OUTSIDE FUNDING
Although elected officials and city staff had a tough time balancing its budget, general funds were reserved for outside agencies, though slightly less than last year at $147,000.
Local organizations receiving funding includes $60,000 to Rainier Foothills Wellness Foundation to continue providing mental health counselors for students; $50,000 to Plateau Outreach Ministries to be split into their rental assistance and utility voucher programs; $15,000 to the Enumclaw Expo Center; $13,800 to Visit Rainier $10,000 to the Enumclaw Chamber of Commerce; and more.
