Flat City Budget Proposed For 2011

University Place's proposed 2011 budget keeps the city slim operations-wise, but it doesn't call for major layoffs, either.

The community – still adjusting to cuts University Place leaders made the past two years in police, parks and other departments, as well as requiring employee furloughs – likely won't see any bumps in operational expenses in the next biennium, if not longer. UP staff presented their proposed budgets this week.

The city proposes a $17.8 million operating budget next year, which is virtually the same as the prior year. It proposes an $18.6 million operating budget in 2012.

In his message to the city, Interim City Manager Steve Sugg called the budget conservative, but said it would help maintain services at core levels.

But one resident, perennial meeting-goer Dan Carnrite, suggested UP leaders need to go further in trimming their expenses. For instance, he suggested many of the city's paid, fulltime positions could be replaced by contracted work from the private market.

"You folks are not putting things into perspective," he told the City Council at Tuesday night's budget meeting. "You're losing sight of the forest of trees that's right in front of you."

The proposed budget doesn't call for a change in revenue. UP's sales tax, for example, is expected to remain flat after two consecutive years of losses. The city's property taxes won't grow either. Homeowners' tax rates will remain near $1.24 per $1,000 assessed property value in 2011, according to the city.

On the expense side, the city proposes to maintain salaries at 2009 levels with no cost-of-living or merit pay increases for its 48 fulltime employees over the next biennium. In terms of police, UP will retain 15 contracted officers from the Pierce County Sheriff's Department. The finance department proposes eliminating 1.5 positions.

Officials acknowledged that UP has one of the smallest workforces in Puget Sound in terms of employees (14) per 1,000 residents.

As far as the city's capital expenses, UP owes some $40 million in Town Center-related debt.

The public is scheduled to give its input on the budget during a November hearing; the City Council must finalize next year's budget by December.