A plan to eliminate property and B&O taxes, reduce the utility tax, and introduce monthly user fees for police, fire, and library services could move forward if the Tacoma City Council decides to create a task force to study the financial and legal feasibility associated with such a move, according to a discussion during the council budget workshop last night.
“This is really boiling it down to truth in taxation,” said City Manager Eric Anderson, who has championed the idea as a longterm strategy for balancing the city’s budget. “It’s as clear as it can possibly be for the person paying the freight.”
Under this plan, Tacomans would receive an itemized monthly or bi-monthly bill based upon assessed property valuation for police, fire, and library services. According to City Manager Anderson, this plan would allow Tacomans to more easily understand the costs associated these services.
“People in the city will determine how much they will pay, and how much service they will get,” said Anderson. “If it’s too much, it’s too much, and that means services would need to be reduced.” He added that the plan would give citizens more control over how much money is spent on police, fire, and library services because a vote would be required before citizens could raise or lower taxes in these areas.
Still, the plan has many obstacles before it would be implemented. The city must determine the total costs for these services (early estimates indicate user fees for police, fire, and library services would have to meet or exceed $150 million — the revenue currently generated from the city’s B&O and property taxes — to pencil out), analyze the impact such a tax structure would have on Tacomans, explore partnerships with other jurisdictions, and address associated statute and ordinance changes. The city would also need to authorize an advisory referendum, develop a legislative strategy, and authorize a binding referendum.
Another hurdle is with councilmembers, who are receptive to the idea but not entirely sold on it.
During last night’s meeting, Councilmember Mike Lonergan was concerned that Tacoma citizens could essentially vote to eliminate funding for one of the three services. He compared the model to some areas of Puget Sound where voters have decided against operating levies for school districts.
“We would have to consider what would happen if a referendum failed in a given year,” he said. “Presumably, we wouldnt have a police department. Im concerned about putting ourselves in the perilous situation that schools are in right now.”
Anderson said that the plan wouldn’t make the city “any more or less vulnerable, as long you are thoughtful” about the referendum.
“If the citizens say they want to eliminate the tax, then they just got rid of their police department,” he said. “I cant imagine that would happen.”
Councilmember Lonergan was also concerned that this plan could potentially pit fire, police, and library departments against one another during campaigns to raise taxes. “I picture public campaigning that turns negative in a hurry,” he said. “Truth is the first victim, and it can get ugly. I’m not sure I’m ready for that. How do you keep these departments from pitting against one another?”
Last night’s meeting was the third in a series of budget workshops leading up to the first reading and public hearing on the biennium budget, which is scheduled Dec. 6. The council is expected to finalize the budget Dec. 13.
On Nov. 15, Tacoma residents and neighborhood activists filled City Hall as City Manager Anderson outlined a plan to use projected budget surpluses to fund a community-based pilot project designed to team city and social service resources with residents in four designated areas in order to address neighborhood concerns.
The plan would create a community-based services team that would report to the city’s executive leaders and support two community action teams, and one technical support team. The community action teams would include a police officer, code inspector, and a representative from the city’s Human Rights and Human Services Department. The technical support team would include inspectors from the Public Utilities and Fire Departments. In turn, these teams would serve four neighborhoods that would use the resources of four newly-hired community coordinators to resolve issues of public safety, code enforcement, and community perception of neighborhoods.
During the first year of the pilot program, community action team members would participate in neighborhood meetings, the city would proactively address code enforcement based upon neighborhood concerns, neighborhoods would develop community action plans, and community coordinators in each neighborhood would maintain a means of communication between City Hall and neighborhoods.
All of this work would be carried out without a drop in the levels of service provided to other parts of the city.
Funding for the program would come from a $5.6 million surplus through 2007.
On. Nov. 8, Anderson laid out his plan for balancing the city’s budget through 2008 by cutting 41 jobs, eliminating a projected $12.25 million deficit through 2007, creating a surplus, and avoiding property tax increases.
The budget proposal also calls for aggressive reorganization of city government, such as eliminating the General Services Department, renaming the Economic Development Department, shifting duties from Human Resources to the Legal Department, creating an Information Technology Department, and establishing compensation policies, performance standards, and a performance-based pay structure for city staff.
Anderson was hired May 24 largely based upon his cost-cutting efforts as a city manager in Des Moines, Iowa. Last year, the Tacoma City Council discovered a $29.6 million deficit while balancing its biennium budget. The council approved a two-year, $356 million general fund budget on Dec. 14, but with provisions that provided funding for one year toward services such as the Proctor District fire station and community liaison police officers. In addition, the city’s expenses have climbed over the past several years, the result of higher costs for wages and benefits, and a law limiting property taxes citywide.
Full details of the City Manager’s budget proposal, including the slideshow and background materials, are available at http://www.cityoftacoma.org/tacomanews. Citizens can also submit their budget questions through the Web site.
