Not an official copy.

MOUNT VERNON, WA
RESOLUTION NO. 546

A RESOLUTION of the City Council of the City of Mount Vernon, Washington, expressing opposition to Initiatives 722 and 745.

WHEREAS, Initiative 722 proposes to roll back taxes, fees, and charges adopted between July 2, 1999 and December 31, 1999; and

WHEREAS, Initiative 722 also proposes to roll back property values for taxing purposes to 1999 levels, and limit regular state and local property tax levy increases to the lesser of 2 percent or the rate of inflation, whichever is less; and

WHEREAS the provisions of Initiative 722 that seek to roll back taxes, fees, and charges could have a particularly adverse effect on the City of Mount Vernon, because the City, in November of 1999, adopted a sewer fee schedule calculated to provide sufficient revenues to fund federally required improvements to the City’s sewer treatment plant; and

WHEREAS Initiative 722 would repeal the ability of local governments to protect future tax levy capacity, and thereby encourage local governments to either impose the highest tax levies allowed, or lose the ability to impose higher levies when future conditions demand it, and

WHEREAS, in that many properties actually lose value from year to year, and of those properties that appreciate in value, they do not appreciate at the same rate, it is inequitable for taxpayers whose property that does not rapidly appreciate in value to potentially assume a larger tax burden than taxpayers whose property value rises more quickly, especially when such a tax shift would become larger and larger over time; and

WHEREAS, the rollback of the state's portion of the property tax would, in the opinion of King County Assessor Scott Noble, shift the tax burden from properties situated in the quickly-appreciating Puget Sound region to properties situated outside that region, including properties in Skagit County, where values are rising much more slowly, and

WHEREAS the Skagit County Assessor’s Office has similarly opined that, over time Initiative 722 will result in significant shifts in the tax burden from areas benefiting from strong economic growth (such as the Puget Sound region) to areas with slower job growth (such as Skagit County), and that, with 66% of the total property value in Washington State located in King, Pierce, Snohomish and Clark counties, the impact of the tax shift will be significant, and

WHEREAS the Skagit County Assessor’s Office has also opined that those taxpayers who participate in the Senior Citizen and Disabled Tax Benefit Program will see the benefits of that program reduced over time, such that senior citizens and the disabled will pick up a larger share of future tax increases, and

WHEREAS, the state Department of Revenue has produced the following estimates of the impact of the property tax limitations in Initiative 722 for Skagit County:

WHEREAS, the calculations of tax burdens necessitated by Initiative 722 are of such scope and complexity that it is not possible for any individual taxpayer to determine if it will be necessary to pay more or less tax; and

WHEREAS, Initiative 745 proposes to require that 90 percent of state and local transportation spending be for road construction and maintenance, and to exempt road construction materials from sales and use tax; and

WHEREAS, Initiative 745 removes the flexibility of local communities to solve their transportation problems by imposing a "one size fits all" approach to communities from Seattle to Pend Oreille County, and here in Mount Vernon; and

WHEREAS, Initiative 745 will likely result in an annual loss of $53 million to the state and local governments, to fund driver education and safety programs; and

WHEREAS Initiative 745 will cut transportation services that are relied on by seniors, the disabled, those without cars, people too young to drive, and others who depend on a range of transportation choices for their livelihoods, their independence, and their ability to lead productive and social lives; and

WHEREAS Initiative 745 is based in part on the faulty presumption that only 47 miles of new roads have been constructed since 1986, when in fact, as reported by the Puget Sound Regional Council, over 298 lane miles were added to arterials and highways in just the Puget Sound region between 1990 and 1998; and

WHEREAS, Because the initiatives are ambiguously written, with key terms left undefined, the initiatives will cause expensive and unnecessary confusion that must be resolved by the legislature and in the courts; and

WHEREAS, the City Council held a public meeting, after due public notice, regarding consideration of the Council taking a position on the two initiatives, and allowed equal time for expression of opposing views; and

WHEREAS, the City Council has carefully considered the implications and impacts of Initiative 722 and Initiative 745 and believes the initiatives to be contrary to the best interests of the City of Mount Vernon and the services and programs provided to its residents and business community;

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mount Vernon, Washington as follows:

The City Council of Mount Vernon hereby takes an official position in opposition to Initiatives 722 and 745, which will be voted on by the electorate at the November 7, 2000 election.