Not an official copy.
City of Clyde Hill
RESOLUTION NO. 338
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLYDE HILL, WASHINGTON, OPPOSING THE PASSAGE OF WASHINGTON STATE INITIATIVE NO. 747.
WHEREAS, Washington State Initiative No. 747 (I-747) will be on the November 6, 2001 election ballot; and,
WHEREAS, I-747 reduces the limit factor for property tax levy increases to 1% per year, unless a greater amount is approved by the voters at an election through the existing levy lid process; and,
WHEREAS, the City of Clyde Hill is responsible for the public safety and welfare of its citizens; and,
WHEREAS, the I-747 limit on property tax levy increases will impact the ability of the City of Clyde Hill to carry out its responsibilities to its citizens, and,
WHEREAS, if I-747 passes it would have an adverse impact upon the City of Clyde Hill's revenues and its on-going operations budget; and
WHEREAS, the Washington State Department of Revenue estimates Clyde Hill would lose property tax revenue potential of approximately $33,000 in Fiscal Year 2002, and would lose approximately $669,000 in property tax revenues over the next 6 years; and
WHEREAS, the City of Clyde Hill relies on property taxes to fund 31% of its operating budget; and,
WHEREAS, property tax revenue would normally be used to finance the on-going operations and services for the community of which police, fire, building and public works services account for 80% of the City's operating expenses: and,
WHEREAS, the City may be required to use its limited reserves to pay for or contribute to lost services or ask the voters of Clyde Hill to approve increases in property taxes and fees if they want to replace this lost revenue locally to maintain services at current levels; and,
WHEREAS, I-747 would hamper the city's flexibility to respond to emerging service needs, and require additional administrative costs to place a levy lid lift before the voters to raise property taxes above the new limit factor; and,
WHEREAS, the cost to place the question of increasing taxes at an election would be approximately $1,300, which is equivalent to 4% of a 2002 6% levy request difference; and,
WHEREAS, the requirement to increase property taxes beyond normal inflationary rates at an uncertain election creates the inability to adequately plan financially in a long-term way; and,
WHEREAS, Clyde Hill has already been financially impacted by the recent loss of motor vehicle excise tax revenue resulting from the I-695 movement; and,
WHEREAS, the loss of motor vehicle excise tax revenues represented about 10% of the City's operating revenues; and,
WHEREAS, statewide, the average city share of property taxes is $0.13 of every dollar and that the largest proportions of property taxes are dedicated for voter-approved levies and the state; and,
WHEREAS, Referendum 47 approved by voters in 1997, already includes a mechanism to control total property tax increases; and,
WHEREAS, the following is an estimate of the possible loss local governments would experience from the reduction in property tax authority if I-747 passed:
¬ Estimates based on 2001 property tax data indicate that cities would lose $19.9 million in 2002 and that losses would grow to $136.6 million in 2007.
¬ In addition, I-747 impacts all other property tax jurisdictions, many of which provide services to cities, including counties, fire districts, library districts, hospital districts, emergency services districts, port districts, and the state. Total local government losses, including cities, would be $56 million for 2002, increasing to $404.2 million by 2007; and,
WHEREAS, the City Council has carefully considered the implications and known impacts of I-747 and believes the initiative to be contrary to the best interests of the City of Clyde Hill and the services and programs provided to its residents and business community; and
WHEREAS, the City has given due public notice regarding consideration of a position on the initiative including the number and title of the proposition, and has allowed equal time for expression of opposing views; and,
WHEREAS, the City Council desires to make a public statement in opposition to the passage of this Initiative; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF CLYDE HILL, WASHINGTON, HEREBY RESOLVES
AS FOLLOWS:
The City Council of the City of Clyde Hill strongly opposes Washington State
Initiative No. 747 and hereby urges all voters to reject this Initiative.
RESOLVED this 9th day of October 2001.
APPROVED:
MAYOR, GEORGE S. MARTIN
ATTEST/AUTHENTICATED:
CITY CLERK, MITCHELL WASSERMAN
FILED WITH THE CITY CLERK: 10-2-01
PASSED BY THE CITY COUNCIL:
RESOLUTION NO. 338