News - Local News

POSTED: Tuesday, Jun. 02, 2009

Bellingham mayor recommends higher taxes, red-light cameras to raise revenue

BELLINGHAM - A 1 percent property tax increase and red-light and school-zone traffic cameras are just a few of Mayor Dan Pike's recommendations to reduce Bellingham's budget woes in 2010.

Pike met with the City Council on Monday, June 1, to discuss his recommendations for what cuts and revenue ideas the city should accept from the Fiscal Alternatives for Stability Taskforce. The mayor recommended the adoption of a little more than $2 million out of the task force's $6 million in recommendations.

Pike appointed the task force in November in response to the recession's hit on Bellingham's finances. The task force includes city department heads and councilmen Stan Snapp and Gene Knutson, and its goal is to find ways to eliminate the projected $6 million general fund deficit for 2010.

Here are some of Pike's recommendations:

? A 1 percent property tax increase, saving the use of "banked capacity" for 2011 budgeting if the economy doesn't recover.

? The installation of enforcement cameras at intersections and school zones where the most traffic infractions occur, generating up to $500,000 in revenue.

? A reduction of general fund support to Whatcom Museum, based on a new membership model and admission fees, saving $300,000.

? Departments such as Parks and Recreation would have the authority to increase fees or have higher fees for nonresidents. This could generate $120,000.

? The consolidation of similar positions in warehouses, public information and marketing, reception and property acquisitions could save $360,000.

The remaining $3.9 million in reductions will be split among all the departments, which will have to make a plan for cuts or find new revenue ideas to submit to the City Council by the end of July. Employees who are losing their jobs will be notified by Aug. 15, with any reductions implemented by Oct. 1.

"This would be the fourth round of cuts they would have to endure if the stars don't align," said Chief Administrative Officer David Webster. "Right now we're just getting ready in case the worst-case scenario happens."

That scenario would mean Bellingham's sales and business and occupation taxes would continue to slide. The city made its 2009 budget thinking those taxes would be flat, but in the first five months of 2009, sales tax revenues have been an average of 15.5 percent lower and business and occupation tax revenues have been an average of 13 percent lower than last year.

The city is still negotiating with its worker unions on possible wage freezes and other money-saving measures that will reduce the cuts departments have to make.

"If we have to be painful, let's do it but do it right," Webster said. "As opposed to just pushing the problem out another year."