Speaking to an informal local boosters club Dec. 11, City Manager Dave Ramsay warned of the many challenges Kirkland faces as the city is buffeted by a national recession.

Meeting with the “Oldtimer’s” club for their monthly breakfast meeting at George’s Restaurant, Ramsay reeled off the issues the city was forced to deal with as a result of the economic downturn: A severe downturn in city revenues, the city’s projected $19 million deficit, a deeply unpopular proposed business tax increase, an imbalance in the city’s economic make-up and city growth issues are all on the front-burner as the city tries to maintain the public’s safety and amenities.

“All the things going on around the world, it’s affecting us right here in Kirkland,” he said.

According to the city’s most recent figures, the city’s sales-tax revenues are running 8-9 percent below last year’s rate and are driven down primarily by the city’s over-reliance on auto sales and development revenues. Ramsay said the auto sales sector alone accounts for 22 percent of the city’s sales-tax revenue. and the volatility in the consumer markets are hampering the city’s efforts to plan a budget.

“We’re growth junkies,” he said. “We do not have a good growth foundation.”

Ramsay hoped the new Obama Administration’s proposed economic stimulus package might prove to be Kirkland’s saving grace in the form of substantial grants for infrastructure investment.

“We’re trying to position ourselves – when and if those programs come – we’ll be ready,” Ramsay said.

Trying to lighten the mood before the City Manager spoke, Fox Cleaners owner Scott Brown stopped by the restaurant dressed as Santa Claus and joked with the gathering, passing around candy canes amidst the laughter.

“I haven’t heard that many bad jokes since the budget process,” Ramsay said.

Set for the immediate future, the City Council is scheduled to pass the city’s biennial budget, decide on how the Parkplace shopping center can be redeveloped and decide on a proposed annexation of Kingsgate, Finn Hill and Upper Juanita in the new year.

Cognizant of the number of former City Councilmen, mayors and retired members of the local business community in attendance, Ramsay thanked them for the opportunity to speak and honored their years of public service.

“We need to be ever mindful of the people that went before us, that build the city into what it is,” he said.

Led by former Mayor Bill Woods, the Oldtimer’s forum meets the second Thursday of every month at 8 a.m. and is seeking new members, ages 65 and older. For more information, contact George’s Restaurant at 425-827-6622.