HomeMy WebLinkAbout11082000CITY OF PORT TOWNSEND
MINUTES OF THE SPECIAL MEETING OF NOVEMBER 8, 2000
The City Council of the City of Port Townsend met in special session this eighth day of
November, 2000, at 6:40 p.m. in the Port Townsend Council chambers of City Hall,
Mayor Geoff Masci presiding.
ROLL CALL AND PLEDGE OF ALLEGIANCE
Council members present at roll call were Alan Frank, Vern Garrison, Geoff Masci, Bill
Wolcott, Syd Lipton and A1 Youse. Joe Finnie was excused.
Staff members present were City Manager David Timmons, Finance Director Michael
Legarsky, and City Clerk Pam Kolacy.
PUBLIC HEARING
AN ORDINANCE FIXING AND ADOPTING 2001 PROPERTY TAX LEVIES
Mr. Masci introduced Jack Westerman, County Assessor. Mr. Westerman gave an
overview of the tax levy process, noting that all taxing districts must hold a public
hearing and adopt a tax levy annually. Although the statutory limit in the past has been
106%, the passage of Initiative 722, if upheld by the court, would have the effect of
limiting taxing authority at a maximum of either 2% or the Implicit Price Inflator
percentage (currently 2.61%).
Mr. Timmons then noted updates to the budget situation: 1) the Teamsters Union has
raised rates for bargaining unit employee medical insurance which will impact the 2001
budget approximately $30,000; and 2) the county has been miscoding prisoners and as a
result, city costs will increase due to under-billing the city for the past three years.
He is currently recommending the following changes to the city manager's budget: 1)
same expenditures and reductions; 2) a wage freeze for non-bargaining unit employees;
3) active discussions with the union in regard to COLA and insurance costs for
bargaining unit employees; 4) eliminating a raise in property taxes since a mandated cap
of 2% will not likely help the general fund in a substantial way; and 5) eliminate the
General Fund subsidy to the street fund ($147,000). The net result could be a budget that
is within $31,000 of balancing.
Maintaining the current tax levy and eliminating general fund support to the street fund
would buy about two years of time; initially, the street fund could be subsidized by the
stormwater fund for street projects that have stormwater impact; however by 2001, a plan
must be in place to avoid a deficit situation.
City Council Minutes 1 November 8, 2000
An effort must be made to create a special levy for the street program.
Public Comment
Gale Wallis: supports 6% increase; she stated there is nothing wrong with raising taxes if
it gives the citizens the services they want.
Sarah Muirhead, Library Board Trustee: supports raising taxes to maintain the library
services.
Larry Thomas, Library Board Trustee: primarily supporting library, but notes that
concerns go beyond that and would support a raise in taxes for needed services.
There was no further public comment.
Mr. Westerman noted that a street levy would have to pass in 2001 and take effect in
2002. Levy lifts are allowed by statute for a specific purpose within a specific period of
time.
It was noted that a 2% tax increase would amount to about $5/year for a $100,000 house.
Mr. Frank requested an update of the 1998 State of the City report to show comparisons
of Port Townsend to other cities in regard to utility rates and taxes. Council agreed to
request this from staff before the final tax levy hearing on November 15.
Mr. Lipton asked if general obligation bonds were affected by Initiative 722. Mr.
Westerman noted that there would be no effect; a bond is a contract for principal and
interest payments.
Mr. Masci asked for any clarifying statements from the public.
Gale Wallis: noted it is against the law in Washington to charge an annual fee for library
cards.
Sarah Muirhead: said the mission statement of the library is to provide free and open
access to all citizens and fees would be contrary to this mission.
Motion: Mr. Youse then moved to postpone action on the tax levy to November 15, but to
allow deliberation this evening. Mr. Garrison seconded. The motion carried
unanimously, 6-0 by voice vote.
Mr. Frank stated that the community has some unreasonable expectations. For example,
there is support for renovating City Hall and building an annex, moving the Police and
Fire Departments to new facilities, and enhancing the parks system; however, there has
also been opposition to selling virtually every piece of city property being considered by
the Capital Facilities Committee, whether it has any identified use or not.
City ~ouncil Minutes 2 November 8, 2000
He added some inflationary expenses are unavoidable as are state and federal mandates,
and all must be dealt with in conjunction with a relatively flat tax base.
Mr. Garrison stated that although he is sympathetic to the library and the aspiration of
their mission statement, promising free access to all means that any service provided by
the library is paid for by all the taxpayers and at the same time, citizens are lobbying not
to raise taxes.
Mr. Youse raised the issue of city services provided without charge to non-city residents
and the "double taxation" of citizens of the city for certain county services.
Mr. Masci asked if there would be a prohibition on a special levy to enhance the library.
Mr. Westerman stated that a levy could be done for a specific purpose over a specific
period of time.
ADJOURN
There being no further business, the meeting Was adjourned at 8:17 p.m.
Attest:
Pm Kolacy, CMC
City Clerk
City Council Minutes 3 November 8, 2000