By Cassie Franklin and Kyoko Matsumoto Wright / For The Herald
Cities across Washington state are working hard to combat significant and expensive challenges, ranging from public safety to quality-of-life issues such as the drug epidemic, housing crisis and violent crime.
We’re also waging a constant battle against the growing impacts of our state’s 1 percent cap on property tax levy increases. This limit puts our cities in increasingly difficult positions each year as we watch inflation drive up costs, our populations grow and the demand for services increase; all while our most significant and stable revenue source, property taxes, remain stagnant.
We’re joining together with other local leaders to ask the state Legislature to lift the cap on property tax increases from a maximum of 1 percent per year to 3 percent. This would give our cities a fighting chance to sustain the essential services our communities rely on while not overly burdening taxpayers, adding just $20 to the average homeowner’s annual tax bill.
As mayors, one of the most important things we do is to make difficult budget decisions. We take seriously the input from our residents about what services they expect and how to adequately fund them, which has become increasingly challenging since property taxes were arbitrarily capped at a 1 percent annual increase in 2001.
Everett is facing a significant budget deficit, which has required difficult service reductions, labor cuts, decreased investment in quality-of-life amenities, and street improvement project delays. According to Snohomish County’s Urban Growth Area targets for cities, Everett’s population is expected to grow by 56 percent over the next 20 years, nearly 3 percent per year. As mayor, my team and I have increased service efficiency and found outside funding for innovative programs serving the most vulnerable, but such significant population growth will greatly increase the demand on services; and revenue won’t be able to keep up.
Mountlake Terrace is also growing and facing a budget shortfall. Increases in the cost of providing public safety services such as police, jails, and courts have all impacted the city’s budget. But thanks to recent investments in infrastructure, housing and light rail, the city is also absorbing growth in Snohomish County in the way that the Growth Management Act prescribes, centered around transit and housing. In the next 20 years, Mountlake Terrace is expected to grow by 43 percent, or 2.2 percent a year.
On top of this population boom, average inflation has hovered around 3 percent per year for the last decade. We’ve done the math and the problem is clear; more people and more services at higher costs is simply unsustainable with our current revenue options.
Lifting the property tax cap modestly from 1 percent to 3 percent simply creates an option for cities and other property tax-reliant entities to make budget decisions based on the needs of their jurisdictions. It protects our “home rule authority,” a right guaranteed by our state constitution allowing local government to make important decisions without interference from the state. The lift we seek is focused on the local portion of property taxes; not your entire tax bill.
In a state as diverse as Washington, the specific wants and needs of our communities vary greatly, so a one-size-fits-all approach won’t always work, especially not on budgeting. We’re simply asking the Legislature to grant some flexibility back to our local governments.
Cassie Franklin is mayor of Everett. Kyoko Matsumoto Wright is mayor of Mountlake Terrace.
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