SeaTac City Council passed a 6 percent utility tax
Thu, 10/30/2014
By James Bermingham
SeaTac City Council passed a 6 percent utility tax by a 5-2. The tax will take effect January 1, 2015.
The vote passed despite unanimous opposition during public comments. The tax, which will apply to cable, gas and electricity, stormwater, and landlines, was aimed at addressing a $5.5 million projected budget deficit for the 2015-2016 general fund. Recently, the council removed water and sewer from the tax.
Councilmembers Pam Fernald and Terry Anderson voted against the tax.
“The Reality is the only way we’re going to get there is by this tax, nobody likes to put a new tax out there,” said Councilmember Barry Ladenburg.
That sentiment was echoed by Deputy Mayor Tony Anderson, “We aren’t going to make up a multi-million dollar deficit with only budget cuts. Police and fire make up over half the budget and I don’t think we should make cuts in public safety.”
That sentiment was not shared by the many people who came to voice their opposition to the ordinance. Several audience members stated plainly that they had lost trust in council and that council was elected to represent the citizens and not the staff of the city.
“I look at these numbers and I’m sorry but I don’t believe you,” resident Earl Gibson said.
“The city has to take some responsibility for not being able to keep their house in order,” resident Ray Overhold said.
“Our citizens do not deserve another tax increase,” said resident Vickie Lockwood. “Wake up council and cut the fat out of the budget.”
Councilmember Fernald agreed with the chorus of people in opposition stating, “I have a responsibility to speak up, there is more we can cut.”
That view was not shared by the majority of the council. They stressed that bad economic times had hit them as well and that they were not happy about the tax but saw it as their only option.
“I don’t like doing this but I don’t have another answer,” said Councilmember Dave Bush. “This spreads it out so no one gets hit really hard.”
Councilmember Kathryn Campbell said they would all be better off if they worked together.
Councilmember Bush also said that once the economy was up they could possibly repeal the tax. This caused audible agitation in the audience.
“There’s lots of other resources around us,” resident Rick Forshler said.
In addition to the utility tax, the budget committee has also cut $910,000 in expenditure reductions as well as proposed $900,000 in fee increases for services. The budget deficit was a result of many factors including stagnant revenues, an increase in the cost of fire service and construction sales tax has not met projections.