Last week, I presented my proposed 2014 Budget to Marysville citizens and the City Council, a cautious but optimistic spending plan that takes investing back into Marysville’s future to the next level.
Marysville has steered through some difficult financial challenges in recent years, but we have continued responsibly to take the necessary steps to protect the interests of our citizens, guided by a disciplined operating philosophy.
We have reduced expenditures, built up emergency reserves to save for a rainy day, paid off city debt (specifically on the public safety building and library), refinanced long-term bonds at better-than-expected rates and without extending the life of the loan, made government more efficient and planned for long-term financial stability by investing sensibly in Marysville’s future.
We are in an enviable position. The city’s finances are healthy and stable, thanks to difficult decisions made and past actions of the City Council and Department Directors who have held the line on spending.
If the Great Recession taught us anything, it’s that moving forward our city government needed to instill a culture of financial stewardship that carries throughout the organization. We have done that. It’s a culture change that is here to stay.
The $115.5 million Preliminary Budget for 2014 is a balanced spending plan that keeps Marysville on a healthy financial course, and protects core services and investments that have helped our city withstand the recession better than many other jurisdictions.
Despite what looks like modest improvements in the economy, we have cause to be wary that our budget challenges are not over. Local governments were hit hard during the recession that caused sales tax revenues to plummet.
The General Fund in the proposed 2014 operating budget is $41.5 million, a 3.7 percent increase over 2013 spending levels of $40 million. The General Fund is used for police and courts, contracted fire and emergency services, parks and recreation, planning and engineering, street repair and other day-to-day general government operations.
The increase in 2014 is mainly to reinvest into city assets and the community, which would include funding for new police officer positions and an increase in subsidy of $290,302 for operational needs in Streets. For the first time in several years, assessed property values went up, easing the challenge to one of the city’s largest funding sources. The 2014 proposed budget forecasts a rise in assessed values, as estimates from the County Assessor are considered. Retail sales taxes in 2013 show increases from the year prior; new construction contributed almost half, and retail sales continue to grow, with larger items such as vehicles and appliances being prominent among purchases. Although these are signs of a slow recovery, a conservative approach is prudent for 2014.
The city of Marysville’s healthy and stable financial picture will allow us to continue building upon our investments back into the community. We are able to continue to rebuild funding for some of the core government services that got put on the shelf because of the unstable economy.
Over the past two budget cycles, mine and the Council’s goal was to begin replenishing our Fund Balance to 10 percent of revenues. In 2012, we reached 10 percent, and met our emergency reserve target ahead of schedule. In 2014, we are confident that we will be able to maintain this level of emergency reserve.
Marysville maintains one of the lowest employee-to-citizen ratios in the state. We will continue to run lean on staffing levels while providing the highest value of service for our taxpayers.
Several proposed initiatives in the 2014 budget are worth mentioning, since they will enable us to keep advancing our goals for economic development, transportation infrastructure and other key service priorities:
Transportation investments remain one of our top priorities. We are looking forward to bringing online these projects in the new year:
This spending plan seeks to maintain Marysville’s status as a desirable community in which to live, work and play, while maintaining a stable economic foundation on behalf of our citizens.
This preliminary budget builds on our priorities and community values, but it needs your voice. I invite you to become a part of the budget process by joining us for a public hearing to share your input on the preliminary budget scheduled for 7 p.m. Monday, Nov. 25, in the Council Chambers in City Hall, 1049 State Ave. To view the budget online, visit the City website at http://marysvillewa.gov/budget.
I encourage your questions and suggestions on the community issues important to you, and the services your City provides. You can contact me by telephone at 360-363-8089 or email email@example.com.