Cuts in city jobs could have been prevented

As we move toward this year's mayoral election, all citizens should review the financial policies of the current administration. Shortly after the election in 2005, our mayor terminated the four-year budget project process. As a result, a totally unrealistic outlook has dominated the budget process for the city of Kent.

As we move toward this year’s mayoral election, all citizens should review the financial policies of the current administration.

Shortly after the election in 2005, our mayor terminated the four-year budget project process. As a result, a totally unrealistic outlook has dominated the budget process for the city of Kent.

This has, and will, result in more city workers losing their jobs and city services being reduced. A large portion of this could have been avoided by sound budget management.

Consider:

1. The proposed 2009 budget projected a 9 percent increase in sales-tax revenue compared to 2008. Unrealistic given the known state of the economy.

2. The latest financial projections by the administration require $1.97 million of sales-tax revenue in each of the last five months of 2009, compared to the average of $1.17 million in each of the first seven months. A 68 percent increase.

3. The latest financial projections require $4.1 million in savings, but have plans for $1.7 million. Suspension of two months of health-care premiums account for $1.2 million of these “savings.”

4. The city has spent $9.7 million more than they have taken in for the first seven months. The general fund balance is now a negative $1.7 million.

5. Based on current trends, the fund balance will be a negative $4.6 million instead of the positive $6.5 million presented to the Council on Aug. 27.

In a recent communication to city employees, the administration describes the necessity of having a substantial general fund balance. It acts as a reserve to fund monthly variations in revenue, and to cover unplanned events such as flood clean-up and repair. The current negative fund balance, and projections of it worsening, is a disaster waiting to happen.

The example set by the mayor’s office is a poor one. The budget for her office is $2.7 million, compared to $1.7 million in 2006, a 59 percent increase.

Capable budget management and timely action by the mayor could have prevented a majority of the layoffs that will now be necessary.

Denton Hanford

Kent


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