2020

To the citizens of Enumclaw and Enumclaw City Council Members,

This year our City of Enumclaw’s Budget process began on July 1st and with its publication to the public
on October 7th will begin the discussion on funding to support our community. I wish to thank all city
staff for working through the budget process for several weeks. Your diligence and patience is always
appreciated when working within a tight timeline. I also want to thank all City Councilmembers for what
has been a successful 2019 in terms of budget and accomplishments. The various opinions and dialogue
experienced is valued as well as what makes our council and democracy dynamic. Thank you one and all
as this is always a team effort.

Each year departments within the local government submit budget requests for items needed to
maintain as well as enhance the functions of their departments. Not every request was included in this
budget. Some were funded partially and others were fully funded. What must be kept in mind during
this budget process is what will be the revenue source to support the expenditure side of the budget.
Will revenues in 2020 increase enough to fulfill items submitted to be included this year? From the
analysis done, revenues projected for 2020 would not be sufficient enough to fund all requests
submitted as well as include money for reserves.

Funding requests for budget year 2020 for both within the city and with all outside agencies came to a
total of approximately $437,000. This dollar amount includes requests for new and ongoing funding that
could be labeled discretionary spending in some requests as they need to be submitted annually for
approval by council.

The estimated increase in revenue to the city, which includes sales and property tax as the major
contributors, was at approximately $279,000. Capital & Project revenues are not included in this figure.
Taking a balanced approach to the needs of our city’s expenditures and revenue, factored into the
decision to not include some of these requests.

As seen, the request for new and ongoing expenditures does not balance out with new revenues.
Another aspect to consider is if these new expenditures are to be ongoing, what will occur if current
revenue streams such as permits and sales tax revenue decrease in the coming years? In approving
existing and new funding it is suggested the approach to be taken is to make prudent decisions.
Supporting new funding will be paid how, in short and long‐term? Can a smaller amount be provided
and accomplish the stated goal of that entity making the request? Would a portion of the total amount
requested, if approved this year, along with an additional requested amount next year still assist in
obtaining the items in need? Questions to consider as we move through this process.

The importance of keeping our reserves healthy is one of the essential elements in remaining a strong
financial city and accomplishes a couple of goals. One, the city’s bond rating could be impacted if those
reserves decreased to an unacceptable level, as this is one of the attributes taken into consideration.
Two, the unknown economic view for city revenue can impact operations within the city departments.

Allowing the reserves to remain stronger this year provides us with that level of confidence in smoothing
out some expenditures if the slowdown in the national and city economy occurs.

Mentioned in last year’s budget was the extent of deferred maintenance at the pool, Expo buildings, city
hall as well as other city owned buildings. Important strides have been made in all of these areas.
Whether it was through grant funding through efforts of councilmembers or state representation as well
as direct funding by the city these projects are moving in the right direction. Expo had buildings painted
and next year the roof will be replaced on one of the Expo exposition halls. Our pool will also be
receiving upgrades to the pool liner and deck. The aquatic center will also be receiving needed repairs to
the facility that were identified in past studies. Funding to make repairs to the exterior of city hall are in
place for 2020 to assist in preserving this near 100 year old landmark in our community. The old shops
building has funding available in order to be torn down. This facility has become too old and inadequate
to be utilized any longer.

Below are some items the city should accomplish in 2020;

‐ Growth should remain healthy through the summer of 2020 as existing developments continue
to be built out. This will be reflected in the impact and hook ups fees the city will receive.

‐ Our area parks will continue to experience upgrades in the grounds and equipment.

‐ This was listed last year and continues to be on the list and that is the consideration for
development of city owned property which is to include a pavilion. So many moving parts to this
project that the process can be frustrating.

‐ Additional street repairs and maintenance will continue in various areas of our city.

In closing, as we move towards our goals for the remainder of 2019 and into 2020, it is my desire that
we continue to provide our citizens here in Enumclaw with the highest level of core services that is
sustained with efficient spending. Being prudent with taxpayer money is an obligatory responsibility to
our citizens as well as to the operations of our city government.

Best wishes,
Mayor Jan Molinaro

2020 Preliminary Budget