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Tacoma plans no cuts in service

By John Larson

Tacoma Weekly
jlarson@tacomaweekly.com
Published on: November 20, 2008

Despite the slumping economy, the city of Tacoma does not expect to lay off employees or reduce services in the next two years as it prepares its budget for the 2009-10 biennium.

The city plans to tap into $13.9 million in savings to prevent cuts in the $2.66 billion budget.

“We are using the rainy day fund to get through the recession so that we do not have to reduce or eliminate any services and can maintain the momentum we have established in service improvement and economic development,” said City Manager Eric Anderson.

For several months Anderson has stated his view that our nation is indeed in a recession. The average length of a recession since World War II has been 14 months; he expects this one will be longer.

The city will actually add staff, 17 new workers.

While delaying some construction projects was considered, the ongoing rise in labor costs and construction materials has led city officials to proceed with planned projects.

Amy Palmer, assistant director of finance and budget for the city, has given several presentations to Tacoma City Council recently. During a budget hearing Nov. 18, she said the general fund will be at $440 million heading into the next biennium.

The city projects total taxes will be up by just $3.9 million, to $361.6 million. In the current biennium, the city projected them going up by $30 million. Sales taxes will drop by $6.8 million, Palmer said, and business taxes will be down by $3.5 million in 2009-10.

A public hearing on the budget will take place during the Dec. 2 council meeting. The council will have a final reading of the budget Dec. 9.

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