Seattle's budget goal: 311 help line

Buoyed by a robust economy, Seattle Mayor Greg Nickels proposed Monday to spend more on additional police and firefighters, neighborhood improvements and a 311 phone service to make it easier for the public to access city services.

With the national economy slowing, however, the mayor warned of economic uncertainty, and also proposed a new employer tax to replace revenue that would otherwise be lost because of a change to the state's business tax.

"The investments I'm proposing today will enhance all our neighborhoods, increase public safety, make it easier to get around, create a more open and responsive government and leave Seattle and our planet a better place to live," Nickels said in his Monday budget address to the City Council, which will review and approve a final city spending plan.

The biggest-ticket item in the mayor's spending plan is the $9 million 311 phone system. After the December 2006 windstorm, Nickels was frustrated with the long list of phone numbers citizens had to navigate to get help.

"We may not sell shoes, but we should take a page out of John Nordstrom's book when we serve the customers we serve, the public," the mayor said, calling the city's current phone system "confusing and unacceptable."

But Councilmember Richard McIver, chair of the budget committee, said, "A 311 phone system is a wonderful thing. My question is where it fits on our priority list. I still have to find out what we have done about the housing issues, what have we done about the feeding issues for the poor and underprivileged."

In his speech outlining his second-year proposal to the 2007-08 biennial budget, Nickels proposed the largest general fund in city history, $921 million. The proposed general fund, which is the discretionary part of the budget that pays for most city services, would rise by 9.5 percent compared to the 2007 general fund budget. It would be $70 million more than originally projected for 2008.

New spending would be partially funded by budget surpluses the city accumulated over the past few years, as well as strong growth in sales tax and the business-and-occupation tax.

Outside of the general fund, revenue from taxes on property sales, called the real-estate excise tax, is expected to rise to a new high — an estimated $63 million this year. That money can be spent only on capital improvements.

The total proposed city budget for 2008, including utility funds, is $3.5 billion. The mayor's office, which provided budget highlights, will not have the full budget proposal ready until next week.

Calling his budget proposal history-making, Nickels also wants to spend:

• $2 million to hire 20 new police officers, and additional funding to hire 15 new firefighters.

• $4 million to help nonprofits redevelop former school buildings.

• $1.3 million to hire park rangers and install security cameras in downtown parks.

• $1 million on a challenge grant to start planning a seven-mile trail that will circle Lake Union.

• $1.8 million to install 24 new traffic cameras to catch drivers who run red lights.

• $6 million to continue parks programs funded by the Pro Parks Levy.

• $3.5 million to build apartments for 40 chronically homeless people.

The budget also includes a proposal for a new business tax based on square footage. The tax would offset most of a $22 million loss from a change the Legislature made to the business-and-occupation tax.

That change, to take effect next year, will affect businesses that bill for services outside the city, such as large law and accounting firms. The mayor's office said business owners would not pay more in new taxes than they did under the previous business-and-occupation tax.

Council President Nick Licata said he was "favorably impressed" by the tax proposal. As for the mayor's other plans, Licata said he wants to see the full budget proposal.

He said the mayor's speech was "more touchy-feely than number-crunching."

Sharon Pian Chan: 206-464-2958 or schan@seattletimes.com