Economic recovery
Thu, 05/14/2009
(Editor's note: The following article appears originally in Seattle City Council President Richard Conlin' s newsletter "Making it Work.")
On Monday, May 11, the council committee of the whole on economic recovery approved a resolution outlining the strategies and actions that the council intends to undertake to mitigate the impacts of the current economic recession on Seattle residents and businesses, and to help promote the economic recovery of the city and region.
The council has worked with community members and businesses over the last few weeks to identify steps that we can take that will help those who are unemployed, at risk for foreclosure, or otherwise impacted by this severe recession. We have identified 17 specific actions that we can take that will assist those in need, help businesses weather the current downturn, and prepare Seattle for the next economy.
The following actions are included in the resolution:
- Providing relief to small businesses. Increase the B&O Tax threshold from $80,000 to $100,000, which will exempt approximately 1,800 small businesses from paying the tax; use the expanded Community Development Block Grant (CDBG) funds included in the federal stimulus legislation to increase loans to small businesses that have been unable to obtain credit elsewhere; extend the term of Master Use Permits (MUP) that have already been issued (saving developers the expense of reapplying for a MUP once the economy begins to recover); approve an exemption from the admissions tax for live music venues; and cap the amount businesses pay in 2009 and 2010 toward the Employee Hours Tax ("Head Tax") at 2008 levels, so that businesses that increase employment in 2009-10 will not need to pay a Head Tax in excess of what they paid in 2008.
- Refine the mission of the Office of Economic Development to improve the City's overall "Business Climate". Orient the city's Office of Economic Development (OED) towards providing more focused support for small businesses, and establish Council priorities and benchmarks to measure OED's effectiveness in this regard; develop OED as a "single point of entry" to help businesses navigate city government with greater ease and improve city-wide coordination among relevant departments, including the Department of Development (DPD), Seattle Department of Transportation (SDOT), and the Department of Executive Administration (DEA); have OED partner with neighborhood chambers and others to develop and promote a "Buy Local" campaign, including encouraging Seattle residents to "vacation locally"; and reallocate resources within OED to encourage the creation of "green" businesses in Seattle and improve the environmental efficacy of existing businesses (this could include helping businesses access the various city programs that provide financial assistance for certain conservation improvements (e.g. utility rebates), encouraging "Buying Co-ops" for compostable products, and accessing technical expertise on green building incentives and opportunities).
- Review the City of Seattle's taxes, fees and utility rates. In response to the "Seattle Business Coalition's" request for a competitiveness study, work with the Office of Economic Development and the Office of Policy and Management to lead a review of recent economic development trends in the city (employment, business relocation, construction, etc.) and assess what impact city imposed costs (taxes, fees, utility rates, etc) have had on the trends; proceed cautiously when considering future tax, utility, and fee increases, and keep utility rates stable through at least 2010; and review DPD's existing fee policies with the aim of considering a "refundable" permit fee if DPD does not complete its permit review within an established timeframe.
- Support individuals affected by the economic recession. Use approximately $5 million in federal stimulus funds to help homeless households move to stable housing and prevent further homelessness by providing temporary assistance to those at risk of losing housing; determine how funds from the city's housing levy can be leveraged to prevent homelessness and best assist people dealing with the impacts of the recession; and use the city's Web page to help direct Seattle residents to Web sites (e.g. 2-1-1) that provide information on human service, housing, and employment resources.
- Invest available resources in actions that will aid recovery. Continue to seek the maximum amount of funds available to the city from the American Recovery and Reinvestment Act, and make judicious and strategic use of funds that are awarded, such as the $5.1 million for weatherization and $6.1 million for energy efficiency programs; work with regional partners to coordinate proposals and increase the region's competitiveness for federal funding awards; and continue to identify "shovel-ready" projects from the 2008 Parks and Green Spaces Levy and other city capital projects that can be implemented as soon as funding becomes available.
- Set priorities for city services and achieve operational efficiencies. Emphasize maintaining basic services in the city budget, such as public safety, transportation, and human services; set a new course in budget review, allocating time outside of the annual appropriation process to review program outcomes and results so that annual incremental appropriation requests and changes are made within the context of overall program funding; and encourage city departments to employ progressive management techniques to identify and implement program efficiencies.
Some of these recommendations will require specific pieces of legislation, which will be developed and worked on by the council over the next few weeks. Work can begin on the parts of the resolution that do not require additional legislation immediately following council approval.
Seattle cannot create economic recovery on its own, but we can do our best to minimize the impacts on Seattle, to be at the forefront in achieving recovery, and to foster and create the next economy. Our skilled workforce, creative business community, healthy urban core, and commitment to integrating economic development with ecological stewardship position us well to be at the forefront of the 'green economy' that will be the next engine driving prosperity in the United States.
Email council president Conlin at richard.conlin@seattle.gov or call 684-8805.