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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