Yazici says tough choices ahead
November 21, 2008
By J.B. Wogan
In the next few years, the city will have to adopt a new tax, according City Manager Ben Yazici.
The city’s executive reminded business leaders of the unpleasant news at a Nov. 21 Sammamish Chamber of Commerce luncheon.
City Manager Ben Yazici presents his annual address to the Chamber of Commerce. Photo by J.B. Wogan
So far, the city’s finances are in good standing, Yacizi reported, explaining that the 2009-2010 budget won’t require layoffs or program cuts. In fact, the City Council authorized minor increases in spending to the proposed budget at its Nov. 18 meeting.
Still, a problem in the taxing structure looms in the future. The city will have the option of adopting a business-and-occupation tax, a real estate excise tax, or a utility tax, but at least one will be necessary to avoid a projected problem in 2015 where expenditures will exceed revenues.
“We need to have a meaningful discussion with our community over the next three or four years,” Yazici said.
The reason for the crossover point is an average increase of 4 percent in operating expenses each year, while the city only enjoys an average increase of 1 percent in operating revenues.
Another way the city could address the crossover point would be to slow its average yearly spending, Yazici said.
Mayor Lee Fellinge also spoke at the luncheon, describing his relief that Sammamish did not share the budget problems of some other cities in the country. Having just returned from a National League of Cities conference, budget shortfalls and their causes were on his mind, Fellinge said.
“It was sobering in some respects,” he said. “Those who get into trouble — the signs were there for a long time.”
Both Fellinge and Yazici lauded the city’s long-term financial planning, which they believed could avoid serious trouble in the future.
Yazici’s report to the chamber also pointed to a survey published in May that indicated 78 percent of respondents agreed that the city was on the right track. While the city received positive feedback about its leadership on most topics, Yazici did notice some dissatisfaction about road work.
About 66 percent of respondents said they were pleased with the city’s progress on roads project, which has motivated Yazici to push forward with the East Lake Sammamish Parkway and 244th Avenue construction projects. The proposed biennial budget also includes an increase for a roads repair fund from about $350,000 to $1 million per year.
Reporter J.B. Wogan can be reached at 392-6434, ext. 247, or jbwogan@isspress.com.
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