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EmailPresident Obama recently delivered an eloquent address to both houses of Congress. He spoke frankly about the economic crisis, the worst in many decades. But, rather than dwell on our losses, he adopted an upbeat approach to difficult times. He reminded us that “we can turn this ordeal into opportunity.”
Like the president, I believe that we in the city of Seattle can — we must — use this downturn to show our strength, our resilience, and our creativity. We must put everything on the table, explore ways to streamline government, and make government more efficient. To accomplish these tasks will require your help.
Here’s the situation: Revenue experts now say there may be a gap of $20-25 million between the City’s anticipated income and actual receipts. In other words, we know that Seattle is going to have to revisit the 2009-10 budget passed last year and adjust spending. A balanced budget isn’t just a worthy goal; in Seattle it’s a charter requirement.
Among the steps the City Council is taking is calling on Seattle citizens for advice. We’re in this together and city services and programs important to us all are at stake. What are YOUR priorities? Which programs do YOU value? Are there places where YOU believe the city can save? We want to hear from you during this second look at the budget. There will be ample opportunities for public comment during special budget meetings and by mail, email, and phone. Check the council Website for councilmembers’ mailing and email addresses. It’s important for the council to hear from YOU.
One of the first opportunities for input will come at a special public meeting beginning at 5:30 p.m. March 26 in the Council Chambers. After the public hearing, there will be a series of Special Budget Committee Meetings, timed to follow Council Briefings on Mondays in April. Starting time will be around 10:30 a.m. on April 6, 13, and 20. For home viewers, the meetings will be broadcast on the Seattle Channel, with streaming on demand.
And once again, it’s worth repeating: Everything is on the table. We will have to look at such tough choices as furloughs and staff reductions. The opportunity part of the ordeal may be achieved when we look at ways to streamline government and make it work better for citizens. The council will view budget revisions in light of priorities adopted last year: public safety, human services, transportation, the environment, pedestrian safety, and neighborhoods. However, with a deepening recession, it may become necessary to consider some reductions even in core areas.
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Comments:
Posted Fri, Mar 6, 5:58 p.m. Inappropriate
Postpone anything with the word "streetcar" in it.
Posted Fri, Mar 6, 7:24 p.m. Inappropriate
The city could probably save thousands of dollars in new stationery and printing costs by not renaming its departments just because a new mayor takes office. For example, the department of transportation has been known under different mayors as SEATRAN and SDOT and City Engineering. The department of construction has been known under different mayors as DCLU (department of construction and land use) and DPD (department of planning and development). The urban planning department has been known under different mayors as SPO (strategic planning office) and DPD (department of planning and development). The parks department has been known under a number of names, most recently DP&R; (department of parks and recreation).
And in each instance of a department name change, the public footed the costs for all-new stationery, employee business cards, and new office or facility signage around the city.
Posted Fri, Mar 6, 10:25 p.m. Inappropriate
There are so many obvious places to start, considering the list of concessions and favors heaped on special interests and downtown developers by the council. Why not start with the most recent give-away that alters Mercer Street for Vulcan by reducing the streets capacity to move vehicles by eliminating a lane and installing a planter strip down the center? This is a plan that appealed to almost no one but the council and the mayor’s office and it will only costs the tax payers two hundred million dollars. ($200,000,000) .
Then, if you’d just re-build the viaduct...
Posted Fri, Mar 6, 10:41 p.m. Inappropriate
Kill the Mercer Street giveaway to Paul Allen boondoggle.
Stop operating the S.L.U.T.
Don't even think about putting any city revenue into remodeling KeyArena.
The deficit becomes a surplus immediately.
Posted Sat, Mar 7, 12:20 a.m. Inappropriate
Anything that does not enable people to simply continue living -- i.e., food, emergency shelter, housing, human services, medical care -- should be sent to the bottom of the list. Period.
Posted Sat, Mar 7, 7:30 a.m. Inappropriate
Jean--
Balancing the budget may be a charter amendment but it might not be a "worthy" goal right now. One of the fundamentals of government during hard times like this, when neither businesses or consumers are spending, is to do no harm. Reducing the number of public projects and cutting employees (I do not work for the city nor do I contract work with the city) only adds to the problem. We need government to see itself as an economic engine, not as a family budget. Seattle has had plenty of good times when money could have been set aside for the bad times. Certainly you knew they were coming. Now is the time to maintain employment and continue projects that will employ others. That might mean floating deficit spending. When the economy returns we can pay them off. This is bigger than the petty goal of simply balancing the city's bottom line.
Posted Sat, Mar 7, 8:44 a.m. Inappropriate
Are these the same "revenue experts" who previously anticipated linear growth in sales and property tax revenues? Who is my representative council member? That's right...I DON'T have one.
Posted Sat, Mar 7, 12:22 p.m. Inappropriate
Lincoln, the city revenue used on KeyArena would come from KeyArena activity taxes if, and only if, there is an NBA team selling $95 tickets to tax, and parkers parking for that event. The revenue will not exist or be spent unless there is an NBA event there.
But thanks for trying.
How about charging the Storm rent on the team shop retail space? Oops, too late for that.
How about decreasing the budgets of the activities paid for by REET by the same rate and proportion as that revenue has fallen?
How about we keep the hotel tax being given to the Washington State convention center and use it to pay for stuff we are currently funding with REET? If the state can claim its matching portion to use in its general fund, then the city should do the same. HB2250 and 2252 are not law yet.
Posted Sat, Mar 7, 8:46 p.m. Inappropriate
Mr. Baker: How about showing everyone exactly how much revenue you expect an NBA team to generate for the city of Seattle that the city would not be getting without the NBA? Your fantasies and lies are getting old. Much of the money that would be spent on NBA tickets is being spent (and taxed) on other things in Seattle, such as M's tickets, Storm tickets, movie tickets, and other entertainment options that ex-Sonics fans are spending that money on. Or perhaps you think that the money people used to spend on Sonics tickets is just being flushed down the toilet?
At any rate, exactly how much money do you believe the Sonics generated in tax revenues for Seattle? Care to spell that out for us, source by source? Or just want to continue to make up garbage like your prior post?
Here's a hint for you: unless you are a complete moron, you know that all the parking revenues from all events at KeyArena would go to the NBA team, if a new NBA team played in KeyArena, and NONE of the parking reveune would go to the city. This is the way it works at Safeco Field and Qwest Field -- the teams get ALL revenue from parking at ALL events held in those stadiums, and the public gets ZERO. This is the same deal the NBA wants from KeyArena.
Perhaps you are ignorant of that fact.
Posted Sun, Mar 8, 9:13 a.m. Inappropriate
Passing the buck is the key theme here. Asking the public to prioritize
what needs to be cut and what needs to be saved is pushing the raging battle
of budget cuts off of their plates and onto the special interest groups in Seattle. Typical.Spineless.Political.Maneuver. Jean.
Folks, we are talking about budget cuts here. Construction is DEAD,
B&O; taxes are DOWN, sales tax are DOWN, and utility taxes are DOWN.
This downward trend is expected to continue way pass 2011.
Councilmember Godden is being disingenuous. She is the BUDGET & FINANCE CHAIR
for Seattle. These are same budget "experts" who work under her oversight that she is trying to distance herself. The same "experts" that Jean has
24/7 access and full disclosure. Oh, THOSE experts. While, others have to speak off the record with certain folks to gain the true impact of this budget crisis. Tricky Jean, FUD does not work here.
We are facing at least a $40 million dollar shortfall for 2009-2010 AND
we are being conservative here. There are three ways to go:
1. Budget cuts
2. Raise utility taxes (again, again and AGAIN).
3. City charter amendment to allow deficit budgets to the voters.
#2. City council already raised utility taxes and water taxes twice.
However, utilities are price sensitive, like any other goods or services.
People are cutting back. A big win for you Greenies.
Sorry, Jean, a monopoly means nothing if you are not going to use it.
#3. Good luck.
So, #1 Budget cuts are left standing. If you read the City Charter carefully,
Jean and the City Council know EXACTLY what they need to cut and to save by
LAW. Unfortunately, there is no accountability in our at-large system
of city government. It is easier push for consensus from the public, when
they are bound to do some hard things that needs to be done.
If you have read this far, where am I going with this.
Jean, watch the 2009 city elections and you will see what the Seattle thinks
of you and your old, tired Seattle ways. Conlin and even Licata (whom I like) are going to be voted out. Thankfully, Dick and Jan are on their
last (drunk)junket. You and your sorry crew are next in 2011.
Seattle needs new and young blood running the city. Sorry, sons of
former insiders do not count (Royer).
There will be change in 2009 and 2011.
Posted Sun, Mar 8, 10:01 a.m. Inappropriate
Lincoln, more than half of the season ticketholders are from outside of Seattle.
Tax a Storm ticket, at their prices, for 15 games, for the 4800 fans and you can compare that to 2 to 3 times the fans, 2 to 3 times the games, etc, comparing Storm or Seattle U games to NBA games in taxable revenue is just dumb.
Posted Sun, Mar 8, 10:28 a.m. Inappropriate
Mr. Baker: give us the numbers. If you think that "new money" tax revenues to the city of Seattle from an NBA team would come close to paying off a $75 million bond, then, you are the one who is "just dumb."
As usual, you give zero facts and figures, just your foolish opinion.
What do Storm games and Seattle U. games have to do with paying off constuction bonds on KeyArena? There are NO construction bonds on KeyArena now! You are not aware of that? The city currently gets tax revenues from all events at KeyArena without having to spend a dime on construction bonds.
To lure a new NBA team to KeyArena would require about $150 million in public debt on new construction bonds. Please show us where the city would find the $15 million per year in revenues it would take to pay off that $150 million in new construction debt. Or even the $7.5 million per year to pay off $75 million in new debt, if some non-arena tax revenues are taken from other uses to subsidize a remodel of KeyArena.
As the article states, the city of Seattle is likely to be about $20 million to $25 million short of the revenue it needs to fund current spending. And you want to spend $15 million per year of tax recvenues on construction bonds for a remodeled KeyArena?
And please stop with your ignorant posts that the tax revenue to remodel KeyArena would just automatically appear. Give us sources and amounts. Otherwise all you have is what you have given us up to this point: ignorant opinion.
Posted Sun, Mar 8, 12:44 p.m. Inappropriate
Ok, I'll stop, but just one more ignorant post, as a parting gift.
Yes, I want to bond and build. It employs people now, and builds stuff that hangs around for a long time. but that $15 million a year is the first I have heard that it would cost that, where do you get your numbers from?
I know I'm just making it all up from what others (Nick Licata Chris Van Dyk, Dino Rossi, the Seattle City Council, that devil Mr Ceis) have said.
From SeattlePI
Last updated February 29, 2008 10:01 p.m. PT
A bid to keep NBA team in KeyArena emerges
Investors reportedly led by Griffin would help refurbish venue
City Councilman Nick Licata has supported efforts to limit tax spending on a new arena. If a plan emerges similar to what Licata has heard is in the works, he might be on board.
"I'm giving it serious consideration," Licata said. "I think that the bottom line for me is that it's a fair deal for both the city and the investors. I've never said flatly, 'No public funds.' "
In November 2006, Seattle voters overwhelmingly approved a measure restricting public subsidies for pro sports teams. Initiative 91 prohibits Seattle from contributing city tax dollars unless such investments yield a profit on par with a 30-year U.S. Treasury bond.
The suggested plan could comply with the measure, said Chris Van Dyk, who led the I-91 campaign.
"The key thing is that if it addresses the use of public funds in a positive way and allocates those public funds toward the public places and the public infrastructure," Van Dyk said. "If (new team owners) do that in a genuine and on the table (way, providing) a significant infusion of money, I don't see that I-91 is a problem."
http://seattlepi.nwsource.com/local/353269_sonicstalks01.html
Yes, you caught me, I do not have the numbers right in front of me. I guess I should get the dirty details from NBA advocate Chris Van Dyk, I may have been telling lies just to get the NBA back in Seattle. He's ignorant and filling my head with ignorance just to satisfy his basketball-jones. RATS!
Tell CVD he's a liar, I'll watch, it'll be fun.
How about that $250,000 a year in office space the Sonics were renting, nope, don't miss that.
How much B & O tax does a $400 million dollar company pay? There is another ignorant thing I'm posting, taxes, who needs that.
Oh, here is a known liar, Dino Rossi:
Wednesday, March 12, 2008
Rossi says plan for KeyArena is too good to ignore
In addition to the roughly $20 million in sales tax revenue that the state could bring in from the remodel arena itself, the Rossi campaign said, the new facility "could generate $25 million over 10 years through sales and (business) taxes on Sonics-related operations."
State Department of Revenue spokesman Mike Gowrylow said it's difficult to calculate revenue estimates on the operations at KeyArena without more-specific information, but the estimate was within the range of possibilities.
http://seattlepi.nwsource.com/local/354680_rossi12.html?source=mypi
Last franchise was here for a little longer than ten years, the state makes out ok, but it is all lies, and I'm ignorant, and just making all this up.
Here are the links to the pitch Tim Ceis gave t the state task force in December on Seattle center and Key Arena, there is all kinds of stuff in there that Ceis made up that I just believed.
Here is the meeting from Dec 1
http://www.leg.wa.gov/joint/committees/lfokc/meetings.htm
and direct links:
heres' 1
http://www.leg.wa.gov/documents/joint/lfokc/2008-12-01SeattleCenter1.pdf
and here is 2
http://www.leg.wa.gov/documents/joint/lfokc/2008-12-01SeattleCenter2.pdf
KeyArena is about 380,000 sf of enclosed space, a remodel would enclose the exterior beams for restaurants and retail space, enlarging the enclosed space to 720,000 sf (I'm making that up too), and adding a second ramp down to the floor so the big shows can get on and off the floor, and on to the next city, in a more resonable amount of time. tear down and prep for the next event is wasted time and lost revenue, just ask the convention center folks.
For some strange reason I think adding restaurants and retail to the exterior of the KeyArena bowl is a good thing for the Seattle Center site, just my opinion. I also think that having people come to Seattle Center for more events, and having an anchor tenant is a good idea, but that's not my opinion, that's the Seattle City Council crazy talk during Seattle Center subcommittee meeting comments on why a break even proposition with the Seattle Storm was a good thing for Seattle, and Seattle Center. Call Jean a liar about that one, she was there. Or, does this just apply to professional womens basketball?
Parks and Seattle Center Committee January 27, 2009
Link to video: http://www.seattlechannel.org/videos/video.asp?ID=2050902
When I'm not here being called a liar I update a little blog on this particular topic:
http://seattlecenterarenareboot.blogspot.com/2009/03/i-am-easily-offended.html
Posted Sun, Mar 8, 5:34 p.m. Inappropriate
When a government sells 20-year bonds, the ballpark figure for debt service is about 10% per year for 20 years. If $150 million in bonds is sold to remodel KeyArena, 10% of $150 million is $15 million per year for 20 years. That is the approximate debt service that the public would have to pay on $150 million in KeyArena construction bonds: $15 million per year for 20 years.
For example, look at the figures on page 19 of the "KeyArena Subcommittee Final Report and Recommendations." It gives the debt service on the construction bonds for the last remodel of KeyArena. "As part of the building refinancing, the city issued $73.4 million in General Obligation Bonds..." (page 18) The bond service on that $73.4 million in construction bonds was $7.55 million in 1999; $7.553 million in 2000; $7.551 million in 2002, and so on. The debt service on that $73.4 million in construction bonds was around $73 million per year for 20 years. That is the rule of thumb used on 20-year construction bonds: debt service is about 10% per year for 20 years. For $150 million in bonds, that would be payments of about $15 million per year for 20 years.
As for the tax revenues from KeyArena: The KeyArena Economic Impact Assessment, done for the city in 2006, found that the total NEW MONEY tax impacts from ALL events at KeyArena to LOCAL GOVERNMENTS (which includes King County, as well as the city of Seattle) was about $2.73 million per year. (page 32)
Let's say the Sonics generated about half of that (the Sonics were about 44 out of the 149 yearly events at KeyArena when this study was done).
That would mean that the NBA generated about $1.35 million per year in tax revenues for King County and the city of Seattle combined. So, for Seattle, the Sonics generated maybe $1.2 million in NEW MONEY TAX REVENUES per year. That was after the Sonics drew 675,490 fans in 2004-05. In their last season in Seattle, the Sonics drew only 547,556, or almost 20% fewer fans. Reducing the new money tax revenues from the Sonics by 20% from the 2006 study would give you LESS THAN ONE MILLION DOLLARS PER YEAR IN NEW MONEY TAX REVENUES GENERATED FOR THE CITY OF SEATTLE BY HAVING AN NBA TEAM IN KEYARENA.
And this study was highly biased to make KeyArena look like a good investment. All the impartial national studies done on pro sports stadiums show ZERO net financial impact for local governments from pro sports facilities. This KeyArena study makes the usual mistake of not subtracting the many tens of millions of dollars per year the Sonics players took OUT OF the Seattle economy, because almost all of the players lived outside the city of Seattle, and spent their multi-million-dollar salaries outside of Seattle, which hurt Seattle's economy -- not helped it.
Posted Sun, Mar 8, 9:17 p.m. Inappropriate
Is this the 380,000 sf or 720,000 sf arena?
And please, more ALL CAPS statements.
I need to email a link to Chris Van Dyk and let him know he has been duped, twice.
Posted Sun, Mar 8, 9:24 p.m. Inappropriate
The 720,000 sf facility generates more money than that 380,000 sf 1994 remodel, but go on, you are on a roll.
(Somebody tell Rashard Lewis to sell his QA home, he's still hurting Seattle).
Posted Sun, Mar 8, 10:27 p.m. Inappropriate
In what way does a 720,000 sq ft facility generate more tax revenue for the city, than a 380,000 sq ft facility? The seating capacity remains essentially the same, and the Sonics sold out very few games in their last couple of seasons, anyway. If Seattle got a new NBA team, attendance would likely be much lower than the Sonics drew, anyway, since many former Sonics fans are no longer interested in the NBA, since the NBA took their team away.
People will spend more money on restaurants and bars INSIDE KEYARENA, as opposed to outside the current Keyarena? How does that generate more tax revenue for the city, genius? Will the tax rates on food and drinks inside KeyArena be higher than they are in restaurants and bars outside KeyArena?
All the remodel would do is put more shops, bars and restaurants inside the arena. How does that increase tax revenues to the city of Seattle? For the city it makes no difference if people spend their money inside the arena or in a bar or restaurant outside the arena.
http://www.evergreenpolitics.com:80/ep/2006/02/why_remodeling_.html
"Why Remodeling Key Arena is Bad for Queen Anne Businesses
Josh Feit of The Stranger hits the nail on the head with his analysis of NBA Comissioner David Stern's testimony in support of a $240 million public subsidy for the Sonics, which is not about increasing seating, or even adding luxury boxes, but expanding the amount of on-site retail & restaurant space.
Stern was acknowledging that increasing the size of KeyArena from 350K square feet to 700K square feet isn’t about adding more seating capacity—it’s about Yupdating KeyArena for high-end customers.
And more important: It’s about keeping them in KeyArena rather than having them venture out into Queen Anne and patronizing the bars and restaurants there. This is the NBA’s model. A one-stop shop. "
The only article I ever read about Rashard Lewis's home when he played for the Sonics said he lived on Mercer Island -- not in Seattle. Nice try, though.
http://seattlepi.nwsource.com/basketball/90899_meet12.shtml
Meet the Sonics: Rashard Lewis
The first paycheck from his new contract hasn't arrived yet, but he has settled into the area for the long haul, buying a five-bedroom house on Mercer Island.
Posted Mon, Mar 9, 2:13 a.m. Inappropriate
eliminate the seattle TV cable channel, completely !
eliminate seattle climate action now website and ALL that support it !
cut employment in all departments by 10 % !
stop all funding to the so called 'youth violence' initiative !
Posted Mon, Mar 9, 8:10 a.m. Inappropriate
The 2006 study, was back when the public portion was $220 million for a remodel, or $20 million if the team left and we want the arena to be at least up to "minor league" standards, good times. Since then the Steve Ballmer and Matt Griffin had taken back $70 million of that to the private investment side, added $64 million to Howard Schultz's 14 - 17 million ($150 million total on the private side, and all of the risk of cost over-runs), increasing the revenue potential of the building and limiting the risk to the public side, the Seattle Center Investors showed the revised remodel and revenue share projections to known basketball hooligans Nick Licata and Chris Van Dyk, and they were in agreement at that phase. Lots has happened since the 2006 report was published, including every referenced newspaper article I posted. The devil, David Stern, had to admit in writing that if Steve Ballmer ate 150 million in remodeling costs that the building would being in the middle of the revenue for NBA buildings.
(Rashard also has a home in Texas, and Orlando)
Ok, that's my last string of lies.
steptoe.fan
stop all funding to the so called 'youth violence' initiative !
What is the counter-cost in police and jails? would that actually save money?
The Seattle channel, King County broadcasts, TVW, UW channelssss could be combined, but that would involve different pools of government agreeing to something.
Posted Mon, Mar 9, 8:15 a.m. Inappropriate
Why is a 720,000 sf building better than a 380,000 sf building?
One of them has restaurants, retail, etc, around the outside of the bowl enclosed in the building.
That 240,000 space is almost as much space as the convention center folks wat at 5 times the cost, what would they do with their added space?
What do we do with space?
Let's ask developer Matt Griffin.
Posted Mon, Mar 9, 8:51 a.m. Inappropriate
The City's budget needs to be scrubbed for programs that are not essential when citizens are in a world of hurt. The city's TV channel is one example. It's working - perhaps too well. It has won national awards as the best public access channel. But it's gone beyond providing timely info on city government into pure entertainment. One only needs to compare it's 2009 budget ($3.4m, 18.25 FTEs) to the King County channel 2009 budget ($707K, 7 FTEs) to grasp the fact that there are opportunities for considerable paring to get back to a basic level of service.
Posted Mon, Mar 9, 9:49 a.m. Inappropriate
"Why is a 720,000 sf building better than a 380,000 sf building?"
To the city, it's not "better". Tax revenues to the city are the same whether people spend money inside KeyArena or outside. The only difference is it's better for the NBA owner, because the NBA owner gets the profits from the money spent in restaurants, bars and shops inside the arena, but the NBA owner gets NO profits from money spent in restaurants, shops, and bars outside the arena. Ergo: all the benefit from expanding KeyArena goes to the NBA owner, and ZERO benefit goes to the city.
"One of them has restaurants, retail, etc, around the outside of the bowl enclosed in the building." From which all the profits go to the NBA owner, and ZERO to the city.
"That 240,000 space is almost as much space as the convention center folks wat at 5 times the cost, what would they do with their added space?
What do we do with space?" The convention center would use the space for added floor space for exhibitions, speaking halls, etc., presumably. All the NBA owner would do with the added space at KeyArena would be to build restaurants, shops and bars which would take business away from the restaurants, shops and bars that already exist in Seattle. What does the convention center have to do with expanding KeyArena? Are they going to play NBA basketball in the convention center?
"(Rashard also has a home in Texas, and Orlando)" Like most pro athletes, Rashard Lewis spent very little of his multi-million-dollar salary in the city where his team played. What he did not save, he spent most of in his various homes, in Mercer Island, Houston and Orlando (so you say about Orlando). How does that help Seattle's economy to have someone earning many millions of dollars per year in Seattle and spending the vast majority of his money outside Seattle, in Mercer Island, Houston and elsewhere? That is the same thing as "outsourcing" jobs out of Seattle. Lewis made millions in Seattle, and took the vast majority of that money out of our city.
Once again, caught in a lie (that Lewis owns a home on Queen Anne, which he does not), you merely change the subject, and don't even admit that you had given out misinformation in your prior post.
Posted Mon, Mar 9, 11:55 p.m. Inappropriate
Mt Baker :
What is the far longer range cost of waisting this money while the same time the larger so called community lives a life of no cooperation with police, no personal responsibility wrt making babies, doing drugs, quitting school, abusing alcohol and demanding benefits from the surrogate parent state ?
How will this money change the fact that the identification of 50 or a 100 individuals 'at risk' ignores the everyday realities of life styles that are breeding new candidates at far greater rate ?
You live in the liberal ideal, an ideal that never has to deal with the reality of south seattle - just spend the money and lets move on ...