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Bainbridge passes tax increase, just in case
Bainbridge passes tax increase, just in case
By Todd Westbrook, Sun
staff
Revenues could increase to around $8 million in 2000.
Whichever way the Initiative 695 vote falls Nov. 2, Bainbridge council members
Thursday night ensured they could maintain revenues and provide a sustained
level of service to the island over the next three years.
The council, meeting in the second special session in as many weeks, passed
by unanimous vote a series of ordinances and referendums to address anticipated
lost revenue and extra costs arising from the possible passage of I-695.
The initiative would reduce drivers' motor vehicle excise tax and require public
votes on tax increases.
"If the wisdom of the voters is to vote yes (on I-695), we certainly ought
to comply," said council member Andy Maron. "This will change how we do business
... and the idea is not to make those changes required by I-695 in a crisis,
but to do it methodically."
Shortfalls created by a flat-rate car tab fee of $30 are expected on Bainbridge
to be $1.2 million in 2000, $1.6 million in 2001 and $2.1 million in 2002.
Those gaps will now be at least in part met by increased property taxes, increased
taxes on the profits of commercial parking businesses, a revised schedule of
fees for land-use and planning applications, an increased storm and surface
water management fee and a new 6 percent tax on cable television.
Revenue from those sources will total $1.275 million in 2000 and $1.375 million
in 2001. Some of the new taxes would be repealed if the initiative fails.
The remaining 2001 revenue gap of some $225,000 is expected to be met by increased
efficiencies derived from the new city hall and some cost cutting.
Also passed, but not to be implemented at this time, were measures to double
the business and occupation tax and to lower the threshold at which that tax
is applied.
That measure gives the council the option of raising revenues at a future date
without having to comply with the I-695-mandated public polling of any tax increase.
A few members on the council, while voting yes on the package of measures,
were unhappy with the potential increase of city revenues from $4.2 million
in 1999 to around $8 million in 2000.
"I'd be a lot happier if the city did as much work into reducing operating
costs as we put into this," said Merrill Robison.
The measures were largely the work of city finance director Ralph Eells, acting
on instructions from Mayor Dwight Sutton to find a way to protect revenues and
the current level of city service.
City officials moved so quickly to pass the measures in part to ensure a favorable
rating on a $5 million bond currently being sought to provide funds for road
improvements and a new water storage tower.
According to Eells, the measure is the only mechanism of its kind being brought
forward in the state.
Published in The Sun: 10/08/1999
