
Despite being a day after Mayor Cary Bozeman presents his 2009
budget to the Bremerton City Council, Bozeman and more than a dozen
mayors of small- and medium-sized cities will meet in Seattle
Thursday for a budget summit.
The economic turndown, prodded by the global financial
slowdown/freeze/crack up that started with too many high-risk home
loans, has hit cities where it hurts. Cities, and the state, don’t
have income taxes, and largely depend on people buying and selling
houses and flat screen TVs to pay for programs.
With less money flowing – except for stocks in tear gas, bottled
water and firearms – cities will have less money to pay for street
paving and beat cops, although Bozeman has said his budget proposal
will not cut public safety services.
The summit will give mayors a chance to talk about different
remedies to less robust revenues, Bozeman said.
As mentioned before, it comes after the administration presents
its budget. So, it appears anything that is learned will not likely
be much help in planning for 2009.
City councilmembers may be invited to attend – they weren’t as
of last week – but reporters are only going to be allowed to
observe discussions for two hours of the 5.5 hour meeting.
The city council will mull over the budget, expected to contain
a heap of cuts to close an expected $4.4 million hole.
Here is the list of mayors, and others, expected to attend. Note
that Port Orchard, Poulsbo and Bainbridge Island mayors have
confirmed they will attend.
1. Jane Christensen, Asst. to the
Mayor Redmond
2. Jim Lauinger, Mayor
Kirkland
3. Dennis Kendall, Mayor
Marysville
4. Linda Bird, Mayor
University Place
5. Eric Faison, Govt. Affairs Manager
University Place
6. Bud Norris, Mayor
Mount Vernon
7. Alicia Huschka, Finance Director
Mount
Vernon
8. Ralph Shape, Mayor
Sea Tac
9. Ava Frisinger, Mayor
Issaquah
10. Jim Slowik, Mayor
Oak Harbor
11. Doug Merriman, Finance Director
Oak Harbor
12. Jim Pearman, Mayor
Mercer Island
13. Laure Iddings, Mayor
Maple Valley
14. Kathryn Quade, Mayor
Poulsbo
15. Lary Coppola, Mayor
Port Orchard
16. Karen Rogers, City Council, AWC
Pres. Port Angeles
17. Jim Justin, AWC
AWC (Association of Washington Cities)
18. Megan Owen, Governor’s Office
Governor’s Office
19. Mary McClure, KRCC
Kitsap Regional Coordinating Council
20. Cary Bozeman, Mayor
Bremerton
21. Laura Lyon, Finance Director
Bremerton
22. PS Reilly
Athena
23. Athena Staff Person
Athena
24. Darlene Kordonowy, Mayor
Bainbridge
Island
25. Choi Halladay, Asst. City Manager
City of Lakewood
Here is the agenda:
9:30 – 10:00 Check-in and networking
10:00 – 10:15 Welcome & Introductions
10:15 – 12:00 Identification and Discussion of Key
Topics
• Growing Revenues In A Recessionary Economy
• Financial Risk Mitigation
• Balancing the Expenditure Budget
• Others as Identified
12:00 – 1:00 Working lunch discussion – Can Mayors Benefit
from More Connection?
———————————–Press Arrives—————————————-
1:00 – 1:15 Morning Session Recap
1:15 – 2:45 Additional dialogue and calls to action
• Follow-on comments from morning topics
• Necessity Breeds Invention
2:45 – 3:00 Closing Comments
I like the warning line slashing through the agenda labeled
“press arrives.” Might as well say, “flu arrives.”
And finally, here are the discussion suggestions:
Growing Revenues In A Recessionary Economy
Statewide initiatives have placed local governments in the
position of needing perpetual economic growth to generate revenues
to cover cost increases related to payroll and other ongoing
expenditures related to the provision of core governmental
operations. What actions or ideas do you have to
actually grow revenues in an economy that is receding?
Is constant economic growth (in an amount sufficient to cover
inflation pressures) possible given Growth Management Act
expectations and increasingly expensive energy resources?
Financial Risk Mitigation
City government’s core operational expenses (largely payroll
and supporting supplies) are relatively stable and growing in
nature – while revenues are often volatile due to changing economic
conditions. Volatility can happen year to year, month
to month, and even within the month – in the short term having
impacts on cash flow management and in the long term having
impact on the City’s ability to deliver core services (such as
public safety). What actions have you taken (or are
considering) to reduce financial risk related to this volatility
mismatch of City revenue sources to governmental operations
expenditures? What’s your assessment of how quickly you
can substantially adjust course in your organization and do you
have adequate financial reserves to give you time to make those
changes?
Balancing the Expenditure Budget
Our citizens rightfully expect us to conduct City business
in the most efficient manner possible. There is a point
however, when revenue and cost pressures far exceed any capacity
for additional efficiency improvements to balance the budget – and
outright reductions become necessary. How do you
balance the need to provide expected government services with the
need to invest in growing your City’s future revenues (economic
development)? Does your organization have clear
priorities of which services/programs are to be removed first or
has the approach been one of more general across the board
reductions? If you have clear priorities – how did they
get established? By whom? For those
making service or program level reductions, how are you managing
citizen expectations and communicating those changes?
Necessity Breeds Invention
Often, difficult times produce positive
outcomes. A financial crisis by its very nature creates
change – some good – some painful. It forces a review
of operations and priorities that goes beyond the effort typically
applied in more fortunate times. What innovative approaches
or solutions have emerged from your current budget balancing
challenges? Has your leadership team risen up to meet
the challenge?