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FOR IMMEDIATE RELEASE
January 11, 2021
City of Kenmore Communications
communications@kenmorewa.gov
425-398-8900
Kenmore City Council Adopts Two Year Budget
The 2021-2022 Budget follows the Financial Sustainability Plan adopted last September
Kenmore, WA – On November 23, 2020, the Kenmore City Council adopted a two-year City budget for 2021 and 2022. The total budget for the two years is $132,209,358, which includes $63,424,032 in one-time capital projects that are substantially grant-funded, such as the West Sammamish River Bridge replacement. The City’s main operating fund, known as the General Fund, was approved at $27,067,770 in expenditures for 2021-2021 and reflects a 3.77% decrease from the prior 2019-2020 biennium (adjusting for one-time, federal grant-funded covid expenses in 2020). The City’s other operating fund, the Street Fund, was adopted at $3,328,167 in expenditures for 2021-2022, which is a 28.19% decrease compared to the prior biennium.
Many of the budget cuts made in spring 2020 as the pandemic unfolded will continue into the next biennium. Such spending reductions include discontinuation of the City’s involvement in the business incubator, reductions in other economic development programs, and decreases in some operational service levels, including landscape maintenance along several arterials (relying on abutting property owners instead). Other reductions that will continue into the next biennium include cuts in public safety expenditures, including discontinuation of the City’s financial contribution to the School Resource Officer program.
New initiatives include augmenting the “RADAR” program which provides mental health professionals to ride along with police officers at times and provide follow-up mental health services. The City Council also adopted resources to develop and implement a Diversity, Equity, and Inclusion policy and program, as well as funding to develop a Climate Action Plan. Other City Council priorities, including pedestrian and bicycle safety and affordable housing will continue to have dedicated time and resources allocated over the next two years.
The adopted budget also follows the Financial Sustainability Plan (FSP) that a citizen task force recommended and the City Council adopted in September. The FSP included expenditure reductions now and no new taxes during the height of the pandemic. In keeping with the FSP, additional revenues are assumed to begin in mid 2022, including a 6% utility tax on cable TV (not internet) and a traffic photo enforcement program in spring or summer of 2022. Revenue (net of operating the program) from traffic photo enforcement will go toward road pavement preservation and traffic safety.
As stated throughout the FSP development process, revenue growth has not been keeping pace with the cost of providing city services and a combination of both expenditure cuts and new revenues are needed for long term financial sustainability. For example, state law limits property tax growth to 1% per year or the Implicit Price Deflator, whichever is lower (plus new revenue from new development, which is negligible compared to the total amount). As another example, utility tax revenue has been declining, as shown on the following graph:
Also in keeping with the FSP, the City Council opted not to increase property tax by 0.6% during the pandemic in 2021, which is the maximum increase allowed by state law, given this year’s Implicit Price Deflater. Not increasing the City’s share of property tax by 0.6% will save the owner of a $700,000 home approximately $4.30 for the full year in 2021 (assuming the home’s value adjusts by about the same percentage as the city-wide average).
“Despite the pandemic and the recession,” said City Manager Rob Karlinsey, “this proposed budget and the resources and initiatives contained in it will allow us to continue to propel Kenmore and our organization to new heights. We will continue to create a thriving community where all people love where they live.”
Find out more at www.kenmorewa.gov.
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