Monday, October 15, 2012

EDITORIAL: The 8% Property Tax Revenue Contribution to the Mayor's Budget is Too High

EDITORIAL:   Property Tax contributes 8% to the the revenues of the Mayor's proposed 2013-2024 Budget.  The Mayor is asking Council to approve an additional 1% property tax increase over the next two year biennium.  This tax is inflammatory to the largest growing demographic group of citizens in Redmond - the over 60 bunch.  The City Council should not approve this tax increase. 

This is the third time Marchione is asking for his 1% tax increase, now in a budget year where he has a $9.8 million carry-over surplus.  He doesn't need it but just because he can get it without a citizen vote of approval he's asking Council.  Council should remain steadfast this year and not approve this  rate increase. 

The 2013-2014 Preliminary Budget says on page 159:
The high price of housing makes it difficult for many to live in Redmond.  A household with an income of $82,000, such as an office manager or bank teller with two children, earns about $50,000 too little to qualify to buy the average Redmond single-family home...45% of Redmond households are considered to be cost burdened or severely cost burdened with regard to housing costs.
Many longer-time residents in their 50's and 60's purchased a home when prices were affordable.  Now many are burdened with demands to support continued, school levies, library levies, and others at time when their incomes are declining owing to their age or the Recession.  Many of these 60 year olds don't have a reasonable personal income that can compete with Finance Director Mike Bailey's statistics for "Affordable Price of Government."

Asking neighborhoods to pay for the high cost of elaborate Overlake and Downtown Stormwater treatment facilities is burdensome, too.  The Mayor wants a 4% Wastewater increase this budget.  A wet vault the size of three City Halls in Overlake may help the large landowners like Group Health to develop their properties, but not on the backs please of the single family home property tax holders.  The Council should set up a separate utility district to pay for these gargantuan trunklines and vault systems. 

Yes, this budget is a two year step in a 20-year plan in large part to develop two urban centers - but the neighborhood roads and sidewalk developments are being put on the back-burner.  The 160th extension to Red-Wood Road, 166th Avenue lane conversion, NE 116th Ave and NE 95th Street sidewalks, Union Hill widening, the 172nd Ave NE Roundabout are all put on hold untill a later, undefined budget cycle.

Neighborhoods on the Hills are paying more than their fair share for Urban Center projects while those living in the Centers - mostly technology workers on Visas - don't pay property taxes nor are they registered voters.  The city tax burden is placed on our traditional neighborhoods rather than those who largely benefit from them. 

The 8% property tax contribution to the budget is too much.  Especially, when the Council has a  surplus this biennium and proposess unspecified efficiencies and carry-overs to "innovative funds" and "technology."

By Bob Yoder
cc: Council

NOTE:  Finally, the largest cost center of the General Fund (26%) are "salaries and benefits" which are budgeted to increase 6% - more than inflation. The average salary and benefit/employee in 2010 was $108,136, for 624 emplyees on the payroll. Benefits have exploded by a 17% increase in the Mayor's proposal.

1 comment:

  1. Re: mostly technology (sic) works on Visas - don't pay property taxes nor are they registered voters

    They do pay property taxes - not directly but indirectly thru the Rents.

    ReplyDelete

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