Association of Washington CitiesJanuary 17, 2005

Cities’ ability to meet financialneeds in the next 5 years

compared to FY 2004

Less Able82%

Better Able8%

Aboutthe Same

10%

Local conditions most often cited as worsened over past 5 years

75% 73%

57%

50% 48%

Impacts ofunfundedmandates

Overall citybudget condition

Traffic congestion Unemployment Drugs/alcoholabuse

Top negative budget influences(% of cities citing as 1 of top 3)

61%

56%

33%

Tax-limiting voter initiatives Cost of employee healthbenefits

Infrastructure needs

Majority of cities expect to delay capital programs over next 6 years

Don't know20%

No9%

Expect to delay capital programs

71%

Majority of cities cannot fund transportation maintenance from

their general fundOther3%

Yes46%

No51%

Demands for other services competewith transportation general

fund resources

No16%

Yes84%

Cities face $3.4 billion transportation capital shortfall over next 6 years

(2004-2009)

Local revenue $3.37 billion

State gas tax$454 million

Federal revenue $541 million

Funding gap$3.41 billion

Other revenue (TIB, WSDOT, other state)$703 million

Infrastructure needs for water, sewer and storm water have increased by 40%

40% Increase

$3.24 billion

$2.39 billion

1998-2003 2004-2009

Cities are pessimistic about providing economic development services over the next five years

Somewhat Pessimistic

38%

Somewhat Optimistic

34%

VeryPessimistic

20%

VeryOptimistic

8%

City actions due to statewide initiative impacts

54%

46% 45%43%

39%

Used some or allof undesignated

reserves

Increased userfees

Reduced stafftraining and

travel budgets

Increased taxes Eliminated staffpositions

Impacts on service delivery past 4 years

79%

62%

40%

19%13%

Roaddeterioration

Less parkmaintenance

Decreased policeservice

Reduced libraryhours

Increased fireresponse time

Where we go from here:Maintaining our cities’ fiscal health

• Allocate state funding to struggling cities and towns

• Implement a comprehensive transportation package

• Provider greater flexibility in the use of existing resources

• Develop new fiscal tools to address the inadequacy of current revenues to meet needs

• Invest in economic development