SEQUIM — The Sequim City Council has approved a $28.1 million city budget for 2016 that anticipates an improvement in economic activity within the city.
“Year to date, on sales tax, we are up about 8 percent, so we are forecasting conservatively . . . that we will continue to see some increase in sales activity,” City Manager Charlie Bush, said Tuesday.
The anticipated revenues will provide support for street operations, equipment and replacement reserves, and to fund debt services and centralized general fund services to a greater degree, staff said.
Debt service on the bonds for the new Civic Center will continue for the second year; at the same time, the city will no longer have the burden of rent for office facilities, staff said.
Also, the debt for the purchase of Keeler Park will be paid off in 2016, staff said.
Overall staffing is reduced by a 0.75 full-time equivalent (FTE) employee.
The budget incorporates current union contracts, and the projected increases in health benefit costs and contributions to retirement plans.
It also incorporates the reduction in overall Labor and Industry (L & I) rates for the city.
Overall budget
Overall, expenses are set at $28,100,203, with an anticipated revenue estimated at $25,201,198, which leaves a deficit of $2,899,005.
That is due to planned capital improvement projects, which will be paid through city savings or the beginning fund balance of the year of $13,932,012, Sue Hagener, city of Sequim administrative services director, said Tuesday.
“We use the fund balance to do capital projects or take advantage of one time opportunities,” she said.
“We have saved money in the past to be able to perform capitol projects this year.”
The budget was approved 6 to 1 — Erik Erichsen, council member, was the sole dissenting vote.
Erichsen, during the meeting, said he opposed the budget because it included a provision to provide $75,000 to charities.
The City Council in 2014 decided that $75,000 would be given to human service organizations annually for a period of three years.
“We should not take [taxpayer] money and give it away to charities of our choice,” he said.
“I cannot approve this budget because of that.”
Utility Rates
Water utility rates have been adjusted with a 3 percent increase and sewer utility rates have been increased by 2.5 percent to meet the increase in revenue of 4 percent recommended in the 2013 rate study.
For a household using 1,000 cubic feet of water per month, the sewer bill will increase $1.72 per month and the water bill will rise by $1.12 per month for a household total of $3.89, city staff said.
The study said that the annual adjustment is important to maintain the financial health of the utility operations, meet current and future debt levels and maintain target reserves.
Low income discount
The budget includes the continuation of a low income discount policy which reduces utility bills or those who qualify.
Applications are due Jan. 15. They are available at the Civic Center, the state Department of Social and Health Services office, Sequim Community Aid, St. Vincent de Paul, Serenity House, United Way, Sequim Senior Center, and on the city’s website www.sequimwa.gov.
For more information, call the city of Sequim Finance Department at 360-683-4139 with questions.
Property tax
The 2016 budget includes a 1 percent property tax increase allowed by law. This results in an estimated $3 annual property tax increase on a $200,000 home for the city’s portion of the tax.
The actual change in property tax will be relative to the assessed home value and is dependent on the actions of other taxing districts in Clallam County.
Capital projects
As outlined in the budget, in addition to water and sewer projects, the city will continue to work on street pavement rehabilitation, will complete the street light conversion to energy saving Light Emitting Diode (LED) units, and make upgrades to the City Shop facilities.
Improvements to the Guy Cole Convention Center at Carrie Blake Park will be funded by lodging tax and a $450,000 grant from the state Department of Commerce Community and Capital Facilities program.
Other park improvements include additional parking to support the Albert Haller Playfields and the development of pickleball courts.
To view the complete city of Sequim 2016 budget, visit www.sequimwa.gov.
________
Sequim-Dungeness Valley Editor Chris McDaniel can be reached at 360-681-2390, ext. 5052, or cmcdaniel@peninsuladailynews.com.
