The Mayor's Office, the Budget Process and the Attitude of Fiscal Accountability.

 

Every year the Mayor is required to prepare and to present to Council a balanced budget for the following year based on his or her priorities.  Council then takes this budget, has the opportunity to match it with their priorities and adjust it as they see fit.  typically what is passed is a blended model where no one gets everything they want, but is representative of the core values of each member.  Since taking office in 2004, this process has fallen to me to begin.

 

The Budget process is not as simple as looking at how much you expect to bring in, and adjusting spending accordingly.  There is never enough money coming in to cover all cost and there is fiscal requirements that place additional limits on what some monies are spent on.  For a city, this process is spread over a couple of months and includes the input of citizens, business, department heads and the state itself.  Unlike the federal government we are not allowed to run a deficit, with the exception of loans, our spending is limited to the revenues we take in, carry over and reserves.

 

When I took office in 2004 our city was in trouble.  An outside audit performed in 2002/03 showed that in prior years mistakes had been made on budgets that were presented to council.  Although it was more bookkeeping errors than anything else, the city had to commit to use of Interfund loans to re-balance previous budgets and we entered the 2004 budget year in debt.  We have now paid off all of those Interfund loans and had in fact built almost a $1 million dollar reserve before the downturn in the economy.  We did this by looking closely at what our priorities were, combining some positions, and an attitude of fiscal conservatism since I took office.   

 

Changes in State Law also created challenges.  Prior to the Washington State Legislature's passage of the Streamlined Sales Tax (SST) sales tax generated from our businesses here in Pacific paid that sales tax to us.  Following SST that sales tax was destination based and was paid out to the home city of the purchaser, if that city could be determined.  Since much of our sales tax was construction related (sales of heavy equipment etc.) we took a dramatic hit.  Combined with the model B&O ordinance, reductions in grants and other funding and the overall economic downturn, the world we budget in today is much different than it was under past administrations.

 

With the State of Washington looking at additional cuts across the board there are a number of funds that I will not take into consideration when I create the budget proposal over this next two weeks.  A division of liquor sales was earmarked for cuts in the governors budget and might also be amended by initiative on November 8th.  For Pacific it is approximately $26,000 that I will set aside and not count on for revenue. I am currently going over the Governor's recommendations to the Special Session to find additional funds I need to do the same thing with.

 

As for Property, Sales and B&O Taxes, my recommendation will basically be flat.  Although I may propose the 1% increase allowed by law, this amount is miniscule and is more than offset by the loss of the homes taken out by King County for their flood protection plans.  With the economy still on shaky ground it would be irresponsible to count on any appreciable increase in business related revenues such as B&O and sales tax.  In the 2011 revenue projections we made conservative predictions that proved to be lower than our actual figures.  Because of this, instead of drawing down our reserves as we did last year and provided a cushion with this year, we will be able to start building them back up.  but our priorities need to be building those reserve funds back to what is prudent and required for fiscal management.

 

When I propose the 2012 budget in November it will be based on the following realities.

1)     We can not count on certain revenues we have seen in the past including many of those that fund community service programs. As I have always been very protective of and believe in the value of our Senior and Youth programs we will need to be creative to make sure these programs can continue.  These are an investment in our community and must be continued.

2)    We cannot count on a measured recovery of our economy in the next 12 months.  Although I do expect to see steady progress in the pattern we see now, I will not count it now, before we have those revenues in hand.

3)    Although the Washington State Legislature will attempt to find ways to help local governments survive, I am not going to hold my breath.  If I am wrong, at least it will be more money coming in and not less.

4)    The outside pressures placed on our community by outside forces will continue.  We need to work as a regional partner in gang prevention, environmental issues, transportation and many more topics.

 

I would love to be able to present a budget that included appropriate increases for some of our overworked employees.  We currently have lower wages on average than most other cities our size.  I would love to fully fund programs, fix our streets and solve all of our community problems.  But that is not going to be a fiscal reality.  As we bring new businesses in (and we have many new companies who will come on line this year) and our current businesses do better, we will see increases in our revenue capacity.  My job now is to balance what we see coming in our future with our needs and provide the council with a proposal that represents the best interest of our community as a whole.  Along with everyone else, I would want more but we must maintain accountability to our future.  

My opposition to King County's Flood Protection Plan.

 

Since the flood of January 2009, the discussion of how we prevent flooding of residential areas has been a constant discussion.  With additional requirements of the Endangered Species Act it is no longer as simple as dredging the river. However that does not mean debris removal should not be part of the equation.

 

First it should be pointed out that much of the property adjacent to the White River (including the park) is owned by King County, they are the lead agency in any mitigation.  King County has long planned a levy setback on the east side of the river and the removal of armoring along the east bank to reintroduce a former oxbow back into the river.  The City of Pacific has always supported this project and believe it is a part of the long term mitigation strategies.  Since the flood of 2009 King County has expanded that idea to include a levy setback on the West side of the river as well.  for the purpose of protection of our citizens, we support this project as well.  It is how this project is aligned that we differ.

 

The West bank setback levy will run from the north side of Pacific Park (again, this is owned by King County) along 3rd Ave SE, this setback turns south along the west side of Pacific Park to the King/Pierce County Line.  Where Pacific has long believed that it was possible to run this levy behind 11 homes on White River Drive, King County bought these homes, moved or destroyed them and plans on running the levy across the middle of those properties.  This has disrupted the neighborhood feel of this area and has impacted the lives of not only those people who were forced to move, but the lives of everyone who live in the area.  It is my contention that if they had run along the back side of this property, millions of dollars could have been spent on other facets of the project far more effectively.

 

In addition, without long term maintenance of the river, both of the levy setbacks will be obsolete in just a few years.  The USGS recently completed a study that showed more than 750,000 tons of gravel, silt and other debris is moved down the White river each year.  Much of that settles in the less steep areas from Game Farm Park to Sumner.  That is why we see massive build ups in our city.  With this much debris building up each year, how long would it take to over run all mitigation projects currently underway?

 

A USGS study completed in November of 2008 showed that at the A street bridge the base of the river had risen almost 6' in the previous 20 years.  This build up raises the river level at all stages and reduces the capacity before you reach flood stage. At that same time the capacity of the White River was approximately 10,000 Cubic Feet per Second before water would over top any of the river banks in Pacific.  In January 2009, so much debris flowed down the river that the capacity of the river was reduced to under 5000 CFS in spots.

Currently we will see water flowing over the wetlands area south and east of White River Estates anywhere from 4500 CFS to 6000 CFS dependent on how much the soil is saturated and a few other factors.  In other words we no longer have the capacity needed for the Army Corps Engineers needs to safely operate the Mud Mountain Dam.

 

Now we do not need to do wholesale dredging.  I believe we can remove debris safely without destroying fish habitat or the turbidity of the river. By scalping the top off of exposed gravel bars we can increase the capacity and maintain a safe river system.

 

As Mayor I will continue to fight to create  safe, sustainable and affordable mitigation for our citizens.  I do not feel this needs to be an either or situation and will not allow our city to be run over by King County or anyone else.  I will make sure out interest are listened to.  In the interim, I will work with all Stakeholders to make sure that we do not see a repeat of flooding this year by supporting the temporary measures and careful monitoring of the river throughout the river.

Why I am proud to be your Mayor

I was discussing some of the reasons why it is important that I am reelected in November.  Yes, continued progress in preparing our citizens and city for disasters is part of it, but there are so many more reasons.

When I first took office in 2004 our city was millions of dollars in debt.  My first challenge as Mayor was to look at how we did things as a Government, prioritize services and look at what could be accomplished better by other means. As a result of changes made, we paid off that debt, built up a reserve of almost $1,000,000 and did so without big tax increases by the city.  We did so by increasing efficiencies, bringing in new businesses and helping our current businesses do better.  Due to these changes and my belief in fiscal discipline, when the economic downturn hit is 2008 our city was in a much better position than many to survive.  We did make cuts, but we did not need to slash programs and lay off employees because we were already operating lean.  Although our reserves have shrunk over this past few years, they did what they were supposed to do, provide for services during Pacific’s rainy days.

There are many other accomplishments we can be proud of.  Under my administration we have aggressively pursued grants and funding to improve our infrastructure.  We completely rebuilt Ellingson, added sidewalks and bike lanes on 3^rd Ave, built a new water tower and regional stormwater facility.  We are working regionally with Sumner to our south creating a new Manufacturing Industrial Center to create new jobs and moving forward to rebuild Valentine Road, Milwaukee and Butte early next year.  We are moving into our second phase of widening Stewart Road and preloading of the shoulders from SR 167 to Thornton should begin soon.  Much of this is funded by your tax dollars that are paid to State and Federal Government; we are just bringing those dollars home to benefit you.

What I am most proud of is what we have accomplished as a community.  In 2004 I asked a group of citizens to step forward and volunteer their time on civic functions in our community.  Out of this initial group, Pacific Partnerships was born.  By encouraging and empowering citizens to take active control of their lives, Pacific Partnerships now provides for much of our civic infrastructure; Pacific Days, The Giving Tree, our Tree lighting at City Hall, many of the activities that draw us together as a community.  We also have the White River Valley Lions Club of which I was the first of the founding members.  Both of these great organizations are not brought up to take credit for them or what they do, but to point out that I value the power and abilities that our citizens have and believe it is important for us as a community to always promote those values.

Yes, I am proud of what we have accomplished in preparedness.  We are on the cutting edge in many ways and have found creative ways to provide many of the same resources that communities four times our size struggle with.  We are teaching citizens not just how to prepare and save themselves, but to effectively work together in times of disaster.  I am proud to have been recognized as a Risk Innovator by Risk and Insurance Magazine and proud of the national recognition garnered as a result of our attitude, training and preparedness. 

There are many reasons I deserve to be reelected as your Mayor for another four years.  I am dedicated to this community and will always work to empower our community to be better than we are.  Some have complained that I am using my position as a stepping stone to a new career.  I have turned down job opportunities that would take me away from my ability to serve as your Mayor because I still had work to do here.  When I retire, I most likely will pursue a new career in emergency management because I have developed a passion for it.  I believe that it is important for everyone to look at how they can best serve others, and if my experience can help our nation become better prepared then yes, I will pursue that as a new career. But it is because of the passion I have for the subject and my desire to always serve in the best interest of our citizens that is the reason.  That is always something to be proud of.

The Values behind Service.

As I predicted back in January, this has turned into a nasty race for reelection.  But a conversation I had over this past weekend sums it up perfectly.  When an opponent is trying to unseat you they try to attack and discredit what your strong points are.  So in a way, my opposition has been saying my strong points are my integrity and my willingness to take on the added duties of emergency management.

Many people have asked why I even put up with the attacks I have. Why have I persevered when most people would have just thrown their hands up and walked away?   I have stayed because I believe in what I am doing and because I believe in fulfilling promises I made to the citizens of this city. Although we have accomplished a lot over this past 7 ½ years, we still have a ways to go.  Another reason why I would not just walk away is because of the values I was raised by.

My father was a retired US Air Force Captain.  He served as a Pilot (Commander of the Stewart Group) and later in the Office of Special Investigations for 16 ½ years before retiring on a medical discharge.  He then taught at Wilson High School in Tacoma for 20 years.  I was raised on the values of hard work, dedication to what I believe in and not giving up until you reach your goals.  My father taught me to be generous with community, to give back and to always honor our Servicemen and Veterans. I was proud to be a part of building the Veteran’s memorial in Puyallup (I donated all of the electrical work).  In the winter of 2006 when VFW Post 11401 was getting ready to build a veteran’s memorial in Milton I was proud to again donate my services as an electrician getting more than $4000 in material donated as well as providing all of the labor.  This was my way of remembering my father and honoring his service.

Those values of hard work go farther than just building veteran’s memorials.  From building sandbag walls (like we are doing this next Saturday (October 15^th) to the citywide clean up to an upcoming project of rebuilding a porch for one of our local seniors. I enjoy serving the community of Pacific and volunteer because of how good it makes me feel to give back.  This is also one of the reasons I ran for office in the first place.

My opponents have attacked me on taking the time to attend emergency management training.  One has even stated that he does not see why a Mayor needs to understand emergencies. First, if the Chief Elected Official or any elected official for that matter, does not understand what is needed, how are they supposed to know what needs to be done?  Do I know more than the average Mayor?  Yes, but that is something our city should be proud of. Over this past four years I have taken over 20 weeks off of my regular work as a Union Electrician learning aspects of Emergency Management I have brought back to our city.  Over this past two years I have spent countless hours working with staff, teaching classes for our citizens and continuing the refinement of our planning.  Other cities have spent hundreds of thousands of dollars just trying to get to the point we have for less than a thousand (after all donations, grants and reimbursements from FEMA we have less than $1000 invested).  As I stated in a different posting, maybe the problem is not I have had too much training; maybe the issue is my opponents have not had enough.

No matter what happens this fall I know I can hold my head high for what I have accomplished and how I have conducted myself.  As has been proven now by two outside investigations, my use of the credit card was not illegal, I have always maintained accountability and I have always been open and honest with the citizens. In the end, the only thing I was guilty of was listening to bad advice of our Finance Director at the time in how we purchased my wife’s airfare to a conference I was speaking at.  Even then it was funds donated by local business that was spent, not tax dollars. These businesses, General Equipment, Trimark Corp., Commercial Metals, Valley Freightliner, Valley Truck and Equipment, etc understood the value of the training I was taking, the importance of not just emergency management but the reputation our city was getting nationally as a leader.  The only thing these businesses asked for in return is that the knowledge gained be shared with the community to make everyone safer.

As this election draws near I am confident the citizens see through all of the political smoke.  I believe in this city and I know that many citizens believe in me.  In the interim I will continue to work hard (again a reminder about the sandbagging party this Saturday), serve our community and help keep Pacific a great place to live and do business.