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HomeMy WebLinkAboutReg 2014-10-06 Item 5.01 - 2015-2016 Biennial Budget - Mayor's LetterCity of Tukwila Jim Haggerton, Mayor 62oo Southcenter Boulevard • Tukwila, Washington • 98188 Tel 206- 433-1800 • www.tukwilawa.gov October 6, 2014 Dear Tukwila City Councilmembers and Community, I am pleased to present to you the proposed 2015 -2016 biennial budget, which will be my last as Mayor of this great city. The proposed budget is the culmination of collaborative work between the Council and the Administration, and reflects the priorities adopted by the Council in June. I would like to personally thank the Council for its collective effort on this budget. Budgeting by Priorities We identified six priorities drawn from and aligned with the Strategic Plan, which was adopted in December, 2012. The Strategic Plan has guided our initiatives and decisions since its adoption, and is the foundation of the 2015 -2016 priorities. These include: 1. Tukwila International Boulevard Community Transformation 2. Community Livability 3. Create Community Partners to Implement City -wide Plans and Visions 4. Develop /Implement Comprehensive Economic Development Plan 5. Continue to Create a More Effective Organization 6. Improve Communications and Community Identity Strong Fiscal Foundation We could not address these priorities without a strong fiscal foundation, and I am proud say that the budget presented today is financially prudent. We have held the line on new expenditures and are making smart investments in our future. This budget does not include usage of our general fund contingency reserves. In fact, we have achieved our reserve funding goals one year early, and the contingency fund is at 30% of general fund revenues. Additionally, this budget does not include any new taxes. We took an equally conservative approach to forecasting revenues for the upcoming biennium, projecting a 2.1% average increase in 2015 and a 2.9% increase in 2016. While we do expect construction activity to increase in 2015 and accelerate in 2016 due to Tukwila Village and additional Tukwila International Boulevard development, we did not include other planned development in our assumptions in order to maintain our conservative approach to revenue forecasting. Continuing our Commitments The foundation we have set over the past seven years and the priorities we have identified for 2015- 2016 demonstrate our continued commitment to ensuring that the Strategic Plan guides us as the city continues to grow and change. We have been able to add seven commissioned officers to the Tukwila Police Department, and we will continue to fund those positions. We will also continue to fund the Neighborhood Resource Center that we re- opened on Tukwila International Boulevard in 2012, as well as the new Community Resource Center we opened last month at Westfield Southcenter. 2015 - 2016 Biennial Budget City of Tukwila, Washington This budget also reflects our continued commitment to the most vulnerable in our community by funding a wide range of service providers who work closely with our Human Services staff to positively impact the lives of many Tukwila residents every day. It allows our Parks and Recreation Department to continue to provide innovative programs for our residents and guests. In the next biennium, the Parks & Recreation plans to take these programs out into the neighborhoods. Rather than relying on residents to come to the Tukwila Community Center, we are committed to going out to the community. I am excited to see the transformation. Focusing on our 2015 -2016 Priorities Tukwila International Boulevard Community Transformation: Since our last biennial budget, we have seen amazing changes on the Boulevard. Tukwila Village construction is underway, and the law enforcement action of August 27, 2013 has led to the City's ownership of the three most problematic motels in this area. We are currently in negotiations to purchase the Spruce Motel and Sam's Smokeshop, and demolition of the motels will likely occur in first quarter of 2015. I share the pride in what we have managed to accomplish on Tukwila International Boulevard with the support of the Council and the broader community, and I desire to do more, which is reflected in this budget. Just as we budgeted and planned to buy the motels in our previous budget, this budget includes planning for the next step of Tukwila International Boulevard's transformation, and funding to demolish the remaining motels and smokeshop and develop and implement a process to identify and secure a developer for the former motel site. Our ultimate goal is to have dirt moving for a new development on the former motel sites before the biennium is over. Community Livability: We know that the appearance, safety and overall quality of life in Tukwila is important to our residents, businesses, visitors and guests. This budget addresses this priority by providing funding for enhanced code enforcement, and continuing our ongoing work to improve residential streets by providing sidewalks, curbs, gutters and undergrounding for 42nd Avenue and 53rd. We can achieve this goal by using a small portion of our considerable bonding capacity to provide necessary infrastructure improvements to 42nd Avenue while capitalizing on a new agreement with Seattle City Light which will cover 60% of the cost of undergrounding. With previous bonds maturing and the favorable undergrounding terms with the utility company, this is a financially prudent way to achieve our goal of safer and improved residential streets in Tukwila. Also funded in this budget is the pedestrian bridge spanning the Green River that will connect the Southcenter district with the new Sound Transit commuter rail station and Phase 2 of the Duwamish Hill Preserve. Create Community Partners to Implement City -wide Plans and Visions: We recognize that the city can profit from increased partnerships and regional collaboration. Over the years we have seen great gains through our various partnerships, from the success of SCORE Jail and Valley Communications, as well as our memberships in Sound Cities Association, Association of Washington Cities and the National League of Cities. We are currently entering into a unique partnership with the Tukwila School District and the YMCA to provide high quality after - school programming at all Tukwila School District elementary schools. In addition, our exploratory work on potentially joining the Kent Regional Fire Authority is another opportunity to create a beneficial and efficient partnership. Develop/Implement Comprehensive Economic Development Plan: With the momentum we have created over the past few years on Tukwila International Boulevard, through the Urban Center planning process and the Tukwila South project, we must continue to drive economic development in Tukwila. Both the Council and Administration agree that an economic development plan is critical for the City to develop in the upcoming biennium. I am proud that we have created an environment in Tukwila that 11 2015 - 2016 Biennial Budget City of Tukwila, Washington businesses want to join, and I think this new focused, planned approach will catalyze even more future development. Continue to Create a More Effective Organization: City government continues to identify how we can become a more effective organization and use innovation and out of the box thinking to help us continually improve. With the exception of the Police and Fire departments, we are operating with about the same number of employees as we did 10 years ago. In addition, we have adopted Lean process improvement methods for some of our most critical services to ensure our processes are effective and responsive to both constituent and City needs. While this budget includes additional funding for code enforcement and public records, both of these areas are being evaluated through a Lean process to ensure that additional funding achieves the most efficient and effective outcome. One example of an innovation we are implementing to become a more effective organization is our new pre -filing diversion program, which is scheduled to commence in November of this year. This program targets specific non - violent defendants cited for theft in the 3rd degree or driving with a suspended license in the 3rd degree and provides the opportunity for pre - filing diversion, if they meet various mandatory criteria. Diversion agreements can include completing community service hours, attending awareness and safety classes and/ or paying restitution. Defendants who successfully complete their diversion agreement, will not have charges filed against them. It is expected that this program will save the City in excess of $100,000 by preventing the need to hire a fourth public defender, while still ensuring public safety and continuing to protect defendants' civil rights. Improved Communications and Community Identity: Throughout the Strategic Planning process we received feedback regarding the need for improved communication. In order to meet the shared goal of improving communications, we established a Communications Division and hired a communications manager who will begin implementing a City -wide communications plan focused on both external and internal audiences. This budget allows for implementation of this plan, as well as a process for the City to develop a positive identity and image. Preparing for the Future The 2015 -2016 budget provides a good foundation for Tukwila's years ahead, but it is important that we are all aware of the external forces that play a role in the City's future. Federal, state and county governments continue to reduce the services they offer and there is 110 evidence this will change any time soon. On top of this, these agencies are no longer the partners they once were in funding critical infrastructure projects. Over the past seven years the City has leveraged hundreds of millions of Federal and State dollars to accomplish projects such as the current work on Interurban and the construction of the Klickitat interchange, but these dollars are becoming scarce. Realities in Olympia in this upcoming legislative session, as well as future ones, may continue to erode state - shared revenues that supply additional funding to the City. In addition, City commitments such as health care costs and LEOFF 1 obligations continue to grow at speeds that outstrip revenue increases. On top of all this, Tukwila, like every other city and county in the state, remains constrained with the 1% property tax cap imposed by the State Legislature. There are some key policy issues facing the City that have the potential for significant long -term impacts, including facilities planning and the decision as to whether to annex to the Kent Regional Fire Authority. Regardless of what decisions are made, it is critical that we ago through a comprehensive process to identify our needs, options and potential timelines to ensure the best outcome for the city. III 2015 - 2016 Biennial Budget City of Tukwila, Washington Conclusion Tukwila is a city of perpetual change. My wife Carol and I moved into our house 42 years ago, and were annexed into the City almost 30 years ago. The Tukwila of the past looks very little like today's Tukwila. The growth around the mall, the significant changes on Tukwila International Boulevard, and Tukwila south with over 500 acres of developable land are all so different. We are now a broadly diverse community, where over 50% of our households speak a language other than English at home. Thousands of immigrants and refugees from all corners of the world now make Tukwila their home and, like the families who have lived here for multiple generations, want a safe, clean, vibrant city that provides opportunities for everyone. It is a privilege and a challenge to lead a city with such diversity in culture, language, tenure and income, and I am satisfied that this budget continues the work of the City to include everyone who lives here or comes to visit. I am proud of the work we have done over the years to protect the City's strong financial position, while innovating our delivery of superior services and reimagining our public spaces. Just as we have transformed areas such as the Urban Center, Tukwila Village and Tukwila South thanks to the work of smart, committed people before us, I know that our work together over these years has value and will lead to an amazing future for Tukwila. This budget continues our shared vision to ensure that Tukwila remains and flourishes as the city of opportunity and community of choice. Thank you for your partnership in this effort. Sincerely, "41: Jim Haggerton Mayor IV