Mukilteo proposes property tax hike
Published 12:01 am Monday, March 21, 2011
MUKILTEO — The city is considering raising taxes over the next three years to close a hole in the budget.
Property owners face a 1 percentage point property tax increase through 2014, if the plan is adopted. The city is also considering for the first time imposing a 2 percent tax on water and sewer use that will increase by 1 percentage point in 2012 and again 2013. The utility tax will remain at 4 percent in 2014 and will stay at that level unless increased in the future.
The plan is scheduled to go before the City Council on Monday night.
If the taxes go into effect, the owner of a typical home in Mukilteo will pay an extra $13.71 this year.
The city is spending more from its general fund than it’s taking in. Even with the proposed tax increases, the city is projected to overspend its general fund revenues by about $644,000 this year.
“We are asking the council to accept that, if we want to get out of the gap mode, we have to increase (taxes,)” said Scott James, the city’s finance director.
The average assessed value for Mukilteo homes this year is $383,200, according to Snohomish County Assessor’s Office.
A 1 percentage point property tax increase for this year already is included in the budget and will bring in $45,000. The 2011 budget also calls for the 2 percent water and sewer tax, but the City Council and the city’s two water districts haven’t formally approved it. This tax is expected to bring $172,500 in additional revenue to the city this year, according to the proposed gap-closing plan.
Mukilteo resident Charlie Pancerzewski told the council at a meeting earlier this month that the city spends too much on art projects and recreational areas, such as the Lighthouse Park, the Rosehill Community Center and the Japanese Gulch.
“The city has raised a lot of taxes already. Why aren’t we finding ways to make cuts?” he asked.
The Emergency Medical Services levy approved by voters last year will help close the hole in the budget with an estimated $1.8 million in revenue each year.
The proposal also calls for cuts of $45,000 in 2013 and 2014 to spending on city staff. That reduction can come from furloughs, layoffs or a drop in city’s contribution to employee health care plans. It’s too early to say, however, if these measures will be needed, James said. The economy could start to bounce back by then.
Katya Yefimova: 425-339-3452, kyefimova@heraldnet.com.
Meeting tonight on tax increase
A proposal to increase taxes is on the agenda for Monday’s City Council meeting. The meeting is at 7 p.m. in the City Hall Council Chambers, 11930 Cyrus Way, Mukilteo. For more information, go to the city’s website at www.ci.mukilteo.wa.us.
