Port Townsend City Council votes 4-3 to use unused tax capacity in 2008
By Jeff Chew, Peninsula Daily News
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It's not clear, however, how much more in taxes property owners would pay - possibly $40 or $47 in additional taxes per year for an owner of a home assessed at $300,000.
The Port Townsend City Council repealed a 2001 city ordinance that requires a nonbinding, advisory vote of the people before making use of banked capacity.
The council also gave preliminary approval of levying up to $198,000 of banked property tax capacity.
Mayor Mark Welch and council members Michelle Sandoval, George Randels and Catharine Robinson voted to repeal the ordinance and use banked capacity.
Council members Frank Benskin, Laurie Medlicott and Geoff Masci voted against repealing the ordinance and using banked capacity.
The vote on repealing the 2001 ordinance - which was approved by 70 percent of the voters - was the same as that on Monday. In order to repeal the ordinance, two readings were necessary.
Banked capacity exists when a taxing district increases taxes by a smaller amount than it is allowed.
The remaining unlevied amount is called "banked capacity," and can be levied in the future.
The action comes after a state Supreme Court decision two weeks ago that ruled Initiative 747 unconstitutional.
Prior to I-747's 2001 voter approval, which limited taxing districts to 1 percent annual property tax increases, the city had $168,000 of banked capacity.
With banked capacity accrued through I-747, the city has $198,000 of banked capacity.
Gov. Chris Gregoire has called a special legislative session on Thursday and is expected to reimpose a 1 percent annual increase tax cap.
The state Legislature is expected to repeal the amount of banked capacity made possible through I-747, thus limiting the amount the city can levy to $168,000.
However, if the Legislature allows taxing districts to levy banked capacity resulting from I-747, the city could levy $198,000.
The owner of a $300,000 home, if $168,000 is levied, would pay $40 in additional taxes.
If $198,000 is levied, the same property owner would pay $47 additional taxes in 2008.
City Manager David Timmons said that, with a Friday deadline to set levies for 2008, there was no time for voters to chime in on using banked capacity for next year's budget.
Pool, library
Sam Shoen, a member of the Make Waves! Strategic Planning Committee, urged city leaders not to shut down the Port Townsend public swimming pool to save money.
Makes Waves! is in the midst of an effort to raise funds for an aquatic recreation center that could cost up to $10 million. It has called on the city to keep the pool open, with increases in fees, until such an aquatic center can be built.
Joann Tyler, with the city Library Foundation, said she supported the council's action for the banked capacity.
"The city is falling behind in meeting its needs," she said, adding that she did not agree with bringing big box stores to town to boost city sales tax revenues.
David Hero, who is working with Make Waves! to raise funds on the aquatic center, thanked the council for making its decision.
Hero headed the capital campaign to raise dollars for the renovation of historic City Hall, where the council meets.
Sandoval urged the council to send a letter to the Jefferson Healthcare hospital board, urging them to support the pool for its health benefits to those prescribed by doctors to use it.
Agreeing with Sandoval, Randels said, "Everybody is involved and everybody has to come to the table to get involved" when it comes to the pool.
Sandoval also said the council should discuss across-the-board city cuts in the future, and call for community meetings to get the public involved in the discussion.
Citing the loss last week of car ferry service, Medlicott said, "We are facing a horrendous economic disaster" in Port Townsend and Jefferson County.
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Port Townsend-Jefferson County Editor Jeff Chew can be reached at 360-385-2335 or jeff.chew@peninsuladailynews.com.
Last modified: November 27. 2007 9:00PM