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RESOLUTION NO. 04-052
A RESOLUTION OF THE CITY OF PORT TOWNSEND, WASHINGTON
PROVIDING FOR THE SUBMISSION OF A PROPOSITION TO THE QUALIFIED
VOTERS OF THE CITY OF PORT TOWNSEND AT AN ELECTION, NOVEMBER
2,2004 FOR THEIR RATIFICATION OR REJECTION, PROVIDING FOR
AUTHORITY TO INCREASE THE PERMANENT REGULAR PROPERTY TAX BY
100 CENTS PER THOUSAND OF ASSESSED PROPERTY VALUE NOT TO
EXCEED $2.945 PER $1000 OF ASSESSED PROPERTY VALUE, FOR THE
PURPOSE OF PROVIDING FUNDS TO MAINTAIN CURRENT LEVELS OF
SERVICE, SETTING FORTH THE BALLOT PROPOSITION; DIRECTING THE
CITY CLERK TO CERTIFY TO THE COUNTY AUDITOR A CERTIFIED COpy
OF THIS ORDINANCE; PROVIDING FOR OTHER MATTERS PROPERLY
RELATED THERETO.
Whereas, Initiative 695 (enacted in 1999) reduced the revenue available to the City for
the purposes of providing services to the citizens of the City in 2000, and removed capital
funding for parks and roads, in excess of$115,000 annually, and assistance from the State
Legislature only provided approximately 25% of the general fund shortfall; and
Whereas, fire protection services costs have increased since adoption ofI-695, and
Whereas, police protection services costs have increased since adoption of 1-695, and
Whereas, the City has an unused portion of its permanent regular property tax authority;
and
Whereas, 1- 747 (enacted in 2001) also restricted the City's ability to derive revenue from
property tax, and
Whereas, the City of Port Townsend is heavily reliant on property tax (deriving
approximately 28% of its total operating revenue from property tax), and
Whereas, between 1-747, and 1-695, in 2005, the City will have lost about 30% of its
property tax authority.
Whereas, overlaying this reduction of revenue is the fact that governmental services
increase in costs above the normal inflation, so we're facing almost twice as much impact
because of our dependence on labor-based services as well as contract services.
Whereas, in addition:
.
The workers compensation insurance rate is going up 15%-20% per year;
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.
Health care costs are up approximately 6% this year and are projected to increase 10%
per year in the next four years;
.
Labor contracts, especially those subject to binding arbitration, are increasing more
rapidly than inflation, which makes it more difficult to sustain services;
Preliminary estimates show the City paying 32% more for County services next year;
and
.
.
Partnerships to achieve economy of scale have been implemented to cut costs.
Whereas, current staffing is lower than it was in 1998. Since staffing is geared to
programs, reducing staff means reducing programs. Since 1998, staff has been reduced in
general services departments, but increased in public safety. Calls for service in public safety
have grown an average of 10% per year for the last five years. There are currently three
Firefighter positions that are vacant and require funding before they can be filled. Employees are
paying more for their benefits since the City switched to a co-pay plan for health insurance in
response to rising costs. The City has binding arbitration with three bargaining units - Police,
Fire and General Government - and each round of contract negotiations with the employees has
brought more cost conscious agreements, and
Whereas, the City Council has looked and continues to look at alternative service
delivery mechanisms, such as partnering with other governmental units, as a means of reducing
costs, and
Whereas, the City Council desires to reduce the impact to City services from a loss of
revenues due to the passage ofInitiatives 695 and 747 by allowing the electors to vote to ratify or
reject an increase in the regular permanent property tax on real property within the City; and
Whereas, the proceeds of an increase in the regular property tax on real property will
provide funding for the continuation of necessary services provided by the City to its citizens,
and
Whereas, the proceeds of an increase in the regular property tax on real property arc
necessary in order just to maintain existing services for the citizens of the City as a result of
decreases in revenue from Initiatives 695 and 747, and
Whereas, in order to fund other needs, the street fund has been funded at a minimum for
a number of years (approximately, $250,000 in 2004, and approximately $400,000 in previous
years), and
WHEREAS, estimated City revenues for 2005 are $7,900,000 (rounded), and estimated
expenditures based on current level of services and programs are $8,400,000 (rounded), leaving a
deficit gap of $500,000 (rounded); and
WHEREAS, if in 2005 the street fund is funded at $500,000, the amount estimated to
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fund needed street maintenance and improvements (instead of $300,000 (rounded) in 2004), the
deficit gap grows to $717,000 (rounded).
Whereas, the City Council determines it advisable to submit to the qualified electors a
proposition whether the City should levy regular taxes for the purposes of providing funds
necessary, and to be used to maintain current levels of service; and
Whereas, the City is authorized to levy a permanent regular property tax not to exceed
$3.60 per $] ,000 assessed value on property within the City; and
Whereas, the City's current regular property tax is approximately $ 1.945 per $1.000
assessed value on property within the City, and
Whereas, RCW 84.55.050 authorizes voters of a City to permit the levy of taxes in
excess ofthe levy limitations established in RCW 84.55.010 by 1-695 and 1-747, and
Whereas, if the proposition passes, the City's current regular property tax would not
exceed approximately $2.945 per $1,000 assessed value on property within the City, and generate
approximately $763,000 additional revenues to the City, and
Now, therefore, the City Council of the City of Port Townsend, Washington resolves as
follows:
Section 1: Findings and Purpose. The City Council finds that to maintain current levels
of service is a public purpose. The City Council further finds that it is in the best interest of the
City to submit to the voters a proposition under RCW 84.55.050 authorizing a maximum regular
property tax levy rate for collection in 2005 not to exceed $2.945/$1,000 of assessed value for
this public purpose, which would establish the base for computing levy increase limitations
provided for in ch. 84.55 RCW for future years.
Section 2: Levy Proposition Submitted to Voters. An election is hereby requested to
be called, conducted and held within the City on Tuesday, November 2, 2004 for the purposes of
submitting to the qualified electors of the City for their ratification or rejection, a proposition
pursuant to RCW 84.55.050 to exceed the limitations on regular property taxes contained in ch.
84.55 RCW.
This proposition seeks voter approval of its regular property tax levy to be imposed in an
amount as determined by the City Council through its regular budget process not to exceed a
maximum rate for collection in 2005 of $2.945 per $1,000 assessed value on property within the
City. The maximum allowable dollar amount of this levy shall be used to compute thc
limitations provided for in ch. 84.55 RCW on levy increases occurring in future years.
Section 3: Submission to the County. The City requests the Auditor of Jefferson
County, as Supervisor of Elections in Jefferson County (the "Auditor"), to submit to the qualitìed
electors of the City for their approval or rejection at the general election held on November 2,
2004 a proposition authorizing the City to impose the City's regular property tax levy in excess
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Resolution 04-052
of the limits of ch. 84.55 RCW as described in Section 2 ofthis ordinance.
Upon the approval by a majority of the voters of the proposition set forth below, the City
may levy its regular property tax in excess of any limitations provided in ch. 84.55 RCW, as it
now exists or may hereafter be amended, as described in Section 2 of this ordinance.
Section 3: Ballot Proposition and Submission to Voters at General Election. The
Clerk of the City is authorized and directed to certify to the Auditor, at least 45 days prior to the
November 2,2004 election date, a copy of this resolution and the proposition, prepared by the
City Attorney in accordance with RCW 29A.36.071, to be submitted at the election in the
following form:
CITY OF PORT TOWNSEND, WASHINGTON
Proposition -
LEVY FOR MAINTAINING ROADS, PARKS
AND EXISTING CITY SERVICES
The City Council of the City of Port Townsend, Washington adopted Resolution
04-052 concerning regular property tax limitations. If approved, this proposition
would authorize the City to impose a maximum regular property tax levy of
$2.945/$1,000 of assessed value in 2005. That maximum levy would be used to
compute future levy limits under ch. 84.55 RCW. The revenues collected in
excess ofRCW 84.55.010 limitations would be used to maintain current levels of
serVIce. Should this proposition be approved?
Yes
No
The election will be held in conjunction with the statewide general election on Tuesday,
November 2, 2004. Polls will open at 7:00 a.m. and will remain open until 8:00 p.m., when they
will close. The location of the polling places shall be determined by the Jefferson County
Auditor, as ex otllcio Supervisor of Elections for the City. The Jefferson County Auditor shall
cause a notice of election substantially in the form attached as Exhibit "A" referred to herein, to
be published at least once in a newspaper of general circulation within the City. Such publication
shall take place not more than 10 days or less than three days prior to November 2,2004. The
Jefferson County Auditor, as the City's ex otllcio Supervisor of Elections shall conduct the
election, canvas the vote and certify the results in the manner provided by law.
Section 4. Notice of Ballot Title. For purposes of receiving notice of the exact language
of the ballot title required by RCW 29A.36.080, the Council hereby designates the City Attorney
as the individual to whom the Auditor shall provide such notice.
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Resolution 04-052
Section 5: Severability. If any provision of this resolution is determined to be invalid or
unenforceable for any reason the remaining provisions shall remain in force and affect.
Section 6: Findings. The findings of fact as set forth above are hereby incorporated by
reference.
ADOPTED by the City Council ofthe City of Port Townsend at a special meeting
thereof, held this 15 day of September, 2004.
C~.Ít~2~.~
Catharine Robinson, Mayor
Attest:
Approved as to Form:
Q~, 'li~
~} ~
John P. Watts, City Attorney
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Resolution 04-052
Exhibit A
CITY OF PORT TOWNSEND, WASHINGTON
Proposition 1
LEVY FOR MAINTAINING ROADS, PARKS
AND EXISTING CITY SERVICES
The City Council of the City of Port Townsend, Washington adopted Resolution
04-052 concerning regular property tax limitations. If approved, this proposition
would authorize the City to impose a maximum regular property tax levy of
$2.945/$1,000 of assessed value in 2005. That maximum levy would be used to
compute future levy limits under ch. 84.55 RCW. The revenues collected in
excess ofRCW 84.55.010 limitations would be used to maintain cUITent levels of
service. Should this proposition be approved?
_Yes
No
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Resolution 04-052