In a 6-0 vote, Blaine City Council unanimously approved a reduced 2021 budget during its regular council meeting on December 14. One position is vacant due to the resignation of Alicia Rule on December 5 following her election as a state representative in the November general election.
The city expects a total revenue of $30.5 million in 2021, a 3.5 percent decrease from 2020. Council approved a 1 percent property tax increase during its November 9 meeting, as allowed by state law in anticipation that revenue from sales and utility taxes will be lower.
Total general fund expenditures of $6.7 million will drop by 8 percent compared to the $7.3 million in 2020, finance director Jeff Lazenby told The Northern Light. The general fund pays for city services like parks and facilities maintenance which have been cut by 19 and 24 percent, respectively.
Total spending in 2021 will drop by 2.8 percent compared to 2020, a reflection of the impact the pandemic has had on city finances.
“Sixty-three percent of general fund operating revenue comes from taxes, such as sales taxes, utility taxes, and property taxes,” Lazenby said during the council meeting. “This illustrates that any decreases in tax revenue can have an impact on general government programs and services, such as police, parks maintenance and general facilities maintenance,” Lazenby said.
The budget funds 65 full-time equivalent (FTE) positions, which is a decrease of four FTE positions from not replacing positions anticipated to be vacant, Lazenby told council.
“Another program that is experiencing a major reduction in spending is street maintenance, which is supported by special revenues such as the penny per gallon gas tax,” Lazenby said. “Due to the border closure, the penny per gallon gas tax is projected to decrease by 87 percent in 2021.”
The adopted budget will be monitored monthly with quarterly reports to city council and has flexibility to be changed.
Council also approved the budget for the tourism projects funded by the lodging tax based upon recommendations made by the Blaine Tourism Advisory Committee (BTAC). Fifteen local events and organizations received $86,700 in funding for 2021. Most of the applicants received less than what was requested.
• Blaine Chamber of Commerce event coordinator – $20,000
• The Plover – $15,000
• International Sculpture Exhibit – $5,000
• Hands Across the Border – $1,000
• Old Fashion Fourth of July – $13,500
• Blaine Harbor Music Festival – $6,000
• Drayton Harbor Days – $1,200
• Wings Over Water Northwest Bird Fest – $5,000
• Centennial Celebration Festival – $5,000
• NN59 Sailboat Restoration – $10,000
• Centennial Reenactment – $5,000
Bellingham Whatcom Tourism, Rocktoberfest, Peace Arch Park International Concerts and special projects and events didn’t request money this year.
In total, the applicants requested $137,450 but were awarded $86,700.
The lodging tax also funds other city-managed expenditures such as marketing and promotion. Marketing and promotion for items like advertising, downtown murals and centennial street banners were budgeted for $44,800, almost three times the amount spent in 2020.
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