PORT ANGELES — The city of Port Angeles’ $900,000 estimated deficit for next year is not expected to hinder its waterfront redevelopment plans, though street paving and other infrastructure-related projects may suffer.
“We’ll have to reduce some of our focus on infrastructure, street maintenance and improvements,” said City Manager Kent Myers on Thursday.
“We’re looking at decreases in some of that area.”
City Council members were told of a possible $900,000 deficit for 2012 at a budget work session Tuesday.
Disparity in deficits
The disparity in the projected deficit’s impact on projects mainly has to do with how they are funded, Myers said.
The waterfront development project is funded through the economic development and lodging tax funds, while the deficit itself is limited mainly to the general fund.
The general fund supports core city services, such as police, fire, streets, parks and recreation.
It can also be used to support other funds, including the capital facilities fund, which covers large infrastructure projects.
But this year, because of the projected deficit, no such contribution to capital projects is expected to be made.
Operating expenses
City Finance Director Yvonne Ziomkowski said the projected deficit is made up almost entirely of the city’s operating expenses.
Only one infrastructure-related project, a citywide wireless network for the police and fire departments, is a factor.
That project is budgeted at $300,000 and will be funded by the Port Angeles Police Department’s reserves.
The city’s Waterfront and Transportation Improvement Plan, which includes redevelopment of the waterfront, is expected to cost the city $1.7 million to develop.
No general fund contributions are expected to be made.
Nathan West, city economic and community development director, said he is requesting $500,000 from the economic development fund to begin construction of an esplanade, a portion of the waterfront plan.
$3.5 million fund
The fund has $3.5 million.
The esplanade is budgeted at $1.9 million, and West said the city would need to receive grant funding to cover the additional cost and break ground.
“Our hope is that goes to a grant match,” he said of the funding request.
The entire waterfront plan is estimated to cost around $17 million to implement.
Myers said the city is breaking the project up into phases, so there is no commitment to spend the entire amount.
But he said the city is pursuing the project even while facing budget constraints because the public is behind it.
Myers: Residents pro
“Based upon public hearings and public input, the citizens want to continue the project over the next several years,” Myers said.
The city this week started looking at how to reduce the deficit.
Myers said cuts will likely affect all services supported by the general fund.
But he said proposed program cuts have not been decided.
“It’s too early to tell on that,” Myers said.
The budget will be approved in December.
Public hearings on the budget are scheduled for Sept. 27, Nov. 1, Nov. 15 and Dec. 6.
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Reporter Tom Callis can be reached at 360-417-3532 or at tom.callis@peninsuladailynews.com.
