Kent City Council weighs budget options

Kent City Council weighs budget options

The Kent City Council is considering other options rather than a $20 vehicle license tab fee to help balance the 2017-2018 budget.

If the council doesn’t approve Mayor Suzette Cooke’s proposed vehicle tab fee, it must come up with about $1 million from somewhere else to balance the budget in 2018.

The council at a Tuesday workshop discussed keeping more sales tax revenue in the general fund rather than the capital resources fund (for facilities, parks, streets); increasing property taxes; using general fund reserves; cutting expenses or some combination of those options.

Cooke proposed using the vehicle tab fee to raise $1.6 million per year starting in 2018 for the street operating fund, including a one-time expense of $623,000 for a new, extended sidewalk along 132nd Avenue Southeast. State law allows jurisdictions to form a Transportation Benefit District (TBD) and to adopt a vehicle tab fee without voter approval if the annual fee is $40 or less.

Councilman Les Thomas spoke against a vehicle tab fee.

“You are asking a lot of people, including the poor, to put $20 on their car,” Thomas said. “It’s not right at this point when the taxes in the state of Washington are among the highest that we raise taxes on everyone.”

City Finance Director Aaron BeMiller told the council one option could be keeping more sales tax revenue in the general fund rather than the capital resources fund to cover the $1 million gap. That would result in about 78 percent of sales tax revenues going to the general fund and 22 percent to the capital resources fund.

Another option would be to increase property taxes even higher than what Cooke proposed in her budget. Kent has about $6 million in what’s known as banked capacity because the city reduced its property tax levy by $1 per $1,000 assessed valuation in 2011 after voters in 2010 approved the formation of the Kent Fire Department Regional Fire Authority (RFA), which levies a property tax of $1 per $1,000 assessed valuation.

The use of banked capacity allows the city to raise property taxes above the 1 percent annual state cap imposed by Initiative 747 approved by voters in 2001.

Cooke’s proposed use of banked capacity would raise about $2 million per year to fund parks capital and major maintenance projects, including renovations at Lake Fenwick Park, West Fenwick Park and Kent Memorial Park. That would jump property taxes by about $53 in 2017 for the owner of a $400,000 home. That cost would go up another $27 in 2018 if the council approves a higher property tax hike to cover the $1 million gap.

BeMiller recommended against using general fund reserves to cover the gap. Staff projects the reserves to be at about $14 million by the end of this year or about 16 percent of the $90 million annual general fund budget.

“We don’t recommend that because we have some options available without using fund balance,” he said. “And our finance policy states that fund balance can only be used for one-time occurrences and this is an ongoing occurrence.”

Staff and the council didn’t discuss potential expenses that could be cut. Several council members, however, raised doubts about whether the city needs to form a new communications department that would include the hiring of a communications director and a cultural communications coordinator at an estimated cost of about $300,000 per year.

The council will meet again at 4:30 p.m. on Tuesday, Nov. 8, at City Hall to discuss the budget and potentially make some decisions about how to cover the $1 million gap.


Talk to us

Please share your story tips by emailing editor@kentreporter.com.

To share your opinion for publication, submit a letter through our website https://www.kentreporter.com/submit-letter/. Include your name, address and daytime phone number. (We’ll only publish your name and hometown.) Please keep letters to 300 words or less.

More in News

COURTESY PHOTO, King County
Driver reportedly going 111 mph in Kent fatal collision

SeaTac man, 33, faces vehicular homicide, reckless driving charges in Nov. 4 death of 38-year-old woman

A National Civics Bee in Arizona. COURTESY PHOTO, Civics Bee
Kent Chamber of Commerce to offer civics contest for middle schoolers

Essay competition first step as part of 2025 National Civics Bee

t
Kent Police help catch alleged prolific graffiti vandal

Tacoma man reportedly had guns, spray paint, rappelling harness and book about taggers in vehicle

COURTESY PHOTO
State Sen. Karen Keiser will officially retire Dec. 10 from the Legislature after 29 years in office.
Process begins to replace retiring state Sen. Karen Keiser

33rd Legislative District Democrats will nominate candidates to King County Council

t
Kundert pleads not guilty in Kent cold case murder

Faces charge of strangling Dorothy Silzel, 30, in 1980 at her condo

Dave Upthegrove. COURTESY PHOTO
Upthegrove looks forward to role as state lands commissioner

Des Moines Democrat will leave King County Council after election victory

COURTESY PHOTO, Kent School District
Kent School District levy passing after initially failing | Update

Nov. 12 results: Yes votes up by 602 with more ballots to be counted

File Photo
Kent Police arrest Texas man in 2013 sexual assault of 6-year-old girl

DNA match reportedly identifies 31-year-old man stationed in 2013 at Joint Base Lewis-McChord

Kent police investigate fatal two-vehicle collision

The collision killed a woman and left a 45-year-old Tacoma driver, suspected of intoxication at the time of the crash, hospitalized.

Competing for the 8th Congressional District: Carmen Goers, left, and Kim Schrier. COURTESY PHOTOS
Adam Smith and Kim Schrier will retain Congress seats | Election 2024

Smith represents the 9th Congressional District and Schrier represents the 8th Congressional District.

Courtesy of Democratic Caucus
Pictured left to right: Sen. Bob Hasegawa (D), Rep. David Hackney, and Rep. Steve Bergquist
Democratic incumbents in lead for 11th Legislative District

Bob Hasegawa, David Hackney and Steve Bergquist have strong leads, with Hasegawa and Hackney running unopposed.