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HomeMy WebLinkAbout2554 Resolution RESOLUTION NO. 2554 A RESOLUTION regarding Initiative 722. WHEREAS, the November 2000 general election ballot will include Initiative 722, a proposal to limit property taxes and rollback tax and fee increases put in place between July 2 and December 31, 1999; and WHEREAS, in December 1999, the Pasco City Council elected to increase the local property tax to offset a significant portion of the loss of Motor Vehicle Excise Tax occasioned by the passage of Initiative 695, rather than close a fire station or make other significant service reductions; and WHEREAS, the effect of the property tax limitations contained in I-722 would result in the loss of at least $600,000 of annual property tax revenue from the City of Pasco general budget and such loss would compound each year thereafter due to the arbitrary 2% annual growth limit contained in I-722; and WHEREAS, the rollback of the property tax and other tax and fee increases put in place between July 2 and December 31, 1999 represents a total impact of more than $900,000, which I-722 would require to be repaid; and WHEREAS, the combined effect of the tax and fee refund, together with the mandated reduction of the ongoing property tax levy, results in a total financial impact to the City of Pasco exceeding $1.8 million in calendar year 2001; and WHEREAS, the loss of $1.8 million in calendar year 2001, as well as the continuing loss of more than $1 million annually, represents an extraordinary impact on the ability of the city to deliver its present array and level of services to the community; and WHEREAS, the City of Pasco has successfully reduced its crime rate from one of the highest in the state ten years ago to now approximate the state average, as a result of a focused community effort which requires the expenditure of 5% of its general fund budget just for annual jail costs, compared to the typical Washington city which spends less than 2% for annual jail services; and WHEREAS, the Pasco City Council was elected by the citizenry to make decisions in the best interest of the community while delivering the array of services needed by the community at the most affordable cost; and WHEREAS, I-722 effectively negates the present ability of the elected City Council to exercise representative government and imposes a "one size fits all" mentality, irrespective of the particular service needs of different communities; and WHEREAS, if I-722 is approved by the voters, it will leave little choice for the Pasco City Council but to reduce emergency (fire and/or police) services, recreation services, library services, park and street maintenance services; WHEREAS, I-722 will effectively require the owners of property with values growing slowly to pay a disproportionately larger share of the community's property tax levy, creating a distinct inequity in the distribution of property tax responsibility and unfairly benefiting the owners of property with values growing faster than average; and WHEREAS, the inequity created by I-722 is expected to affect predominantly those owning older homes in older neighborhoods and those of very low income and many elderly property owners living on fixed incomes; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO RESOLVE AS FOLLOWS: Section 1. That the Pasco City Council hereby opposes Initiative 722 and urges the state legislature to define an appropriate modification of the property tax levy in response to the taxpayer concerns reflected in the initiative. PASSED by the City Council of the City of Pasco at a regular meeting this 2nd day of October 2000. Michael L. Garrison, Mayor ATTEST: Catherine D. Seaman, Deputy City Clerk Leland B. Kerr, City Attorney