1. Association of Washington Cities January 17, 2005

2. Cities’ ability to meet financial needs in the next 5 years compared to FY 2004

3. Local conditions most often cited as worsened over past 5 years

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

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

6. Majority of cities cannot fund transportation maintenance from their general fund

7. Demands for other services compete with transportation general fund resources

8. Cities face $3.4 billion transportation capital shortfall over next 6 years (2004-2009)

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

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

11. City actions due to statewide initiative impacts

12. Impacts on service delivery past 4 years

13. 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