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City of Seattle
Gregory J. Nickels, Mayor
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NEWS ADVISORY
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| SUBJECT: Nickels' proposed 2007-2008 budget invests wisely in city's future
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FOR IMMEDIATE RELEASE:
9/25/2006 2:00:00 PM |
FOR MORE INFORMATION CONTACT:
Alex Fryer (206) 684-8358
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Nickels’ proposed 2007-2008 budget
invests wisely in city’s future
Includes new investments in transportation,
public safety and the environment
Seattle – Mayor Greg Nickels today proposed a 2007-2008 budget that
builds on the strong economic growth and good financial management during the
last few years and invests wisely in expanding basic services. The proposed
budget includes new investments in transportation, police and firefighters,
combating global warming and protecting the environment, ending homelessness
and building strong neighborhoods.
“When we do have the resources to invest in our future, we must invest
them wisely to provide people with the best and most efficient services possible,” Nickels
said. “This budget reflects a vision for our community that puts public
safety first, creates economic opportunity and jobs, reduces climate changing
emissions, and provides people with homes.”
Transportation is a critical issue facing Seattle . The mayor’s proposed
budget continues current transportation maintenance efforts and adds significant
funding under Bridging the Gap, a transportation maintenance and development
program that includes a property tax levy lid lift, a commercial parking tax,
and a business transportation tax. The property tax measure is proposed for
the November ballot. If approved by voters, approximately $40 million and
$52 million will be generated by the three revenue sources for transportation
investments in 2007 and 2008, respectively.
“We can fix and build sidewalks, we can help improve transit service,
we can improve bike safety and trails and we can start rebuilding our streets
and bridges,” Nickels said in a speech today.
In addition, Nickels’ proposed budget:
- Invests about $18.5 million to create a three-part Environmental Action
Agenda:
$14.3 million to reduce greenhouse gas emissions; $3 million to expand and
maintain Seattle ’s tree cover; and $1.2 million to improve the city’s
streams and shorelines.
- Includes $3 million to expand Housing First, a strategy offering housing
for the homeless with support services to deal with additional challenges
of drug or alcohol abuse and mental-health issues. This funding is part of
the city’s commitment to the 10-Year Plan to End Homelessness. The
proposed budget also includes money to continue the current number of shelter
beds.
- Invests in neighborhoods: approximately $1.7 million for South Park for
programs focusing on youth, economic development, street paving and more;
approximately $375,000 to continue revitalization efforts in the Broadway
neighborhood; and $150,000 for Southeast Seattle to support a possible community
revitalization effort.
- Includes about $2.5 million for a downtown parks initiative of maintenance
and program expansions, which includes hiring five new park rangers to improve
security and service.
- Provides an additional $500,000 to expand the Seattle Public Library’s
collections budget. Overall the Seattle Public Library budget reflects $4
million in additional resources to operate new and expanded facilities, additional
hours and added collections to better serve Seattle Public Library patrons.
- Includes approximately $800,000 to expand apprenticeship opportunities
at City Light, Seattle Public Utilities, and the Fleets and Facilities Department.
- Raises the threshold for business and occupation (B&O) tax payments
from $50,000 to $75,000, which means firms with annual revenues less than
$75,000 would not be subject to Seattle’s B&O tax.
- Adds approximately $633,000 to ensure removal of most graffiti on
public property within 48 hours because one of the most effective deterrents
to graffiti is prompt removal.
- Adds six patrol positions in 2007 at a cost of about $600,000. Includes
$585,000 to put combined camera and mobile data computers in all Police Department
patrol vehicles.
“In 2007 you will see some of most significant investments in our environment
that the city has ever embarked on,” Nickels said. “Global warming
is threatening our planet. We no longer have the luxury of waiting for the
federal government to join the community of nations working to combat climate
change. The change must start here at home.”
The revenue estimates in the proposed 2007-2008 budget reflect an expected
slowdown in the national and regional economies over the next few years, in
response to higher interest rates, a slumping housing market, higher energy
prices and other issues. The city of Seattle also faces significant challenges
in this biennium:
- Changes made by the Legislature in city B&O tax laws could result
in a $20 million revenue loss for Seattle’s general fund in 2008; and
- Rapidly increasing health care costs for employees are expected to grow
by about
$45 million, or 14.4 percent per year between 2005 and 2008.
Despite the expected challenges, the city’s long-term fiscal health
is good. The proposed budget includes additional money for the city’s
emergency subfund and continues to maintain all reserve funds. The city’s
very high credit rating was not changed by the rating agencies despite the
severe recession of 2001-2003.
The proposed general fund budget – which pays for services typically
associated with city government, such as police, fire, parks and libraries – is
$807 million for 2007 and $813 million for 2008. The total proposed budget
(including utilities) for 2007 is $3.3 billion and $3.4 billion for 2008.
The City Council will spend October and November reviewing the mayor’s
2007-2008 proposed budget and capital improvement program (CIP). The budget
and CIP must be adopted no later than Dec. 1. State law requires Seattle adopt
a balanced budget.
For more information, visit the mayor’s web site at www.seattle.gov/mayor.
Get the mayor’s inside view on initiatives to promote transportation,
public safety, economic opportunity and healthy communities by signing up for
The Nickels Newsletter at www.seattle.gov/mayor/newsletter_signup.htm.
Read the text of the speech
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Office of the Mayor
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