SeaTac lawmakers expressed opposition on Aug. 11 to Initiative 1033 that will be on the November general election ballot.
The Tim Eyman-backed measure would limit the growth of state, city and county general fund revenue to the rate of inflation and population growth.
Any additional revenue collected would be used to reduce the next year's property tax levy.
City Manager Craig Ward said the initiative would have a "pernicious impact."
"Economic development would not be useful," Ward declared. "We would receive more jobs but any windfall from economic development would count against us."
Senior Assistant City Attorney Mark Johnsen noted that if the economy improves, the city would not be able to keep the extra revenues generated if voters approve the measure in November.
"It is unfortunate that we have had a bad year because this year is the base year," Mayor Ralph Shape commented.
In other business, council members approved an agreement with the South Correctional Entity (SCORE) to pay the city $84,660 to mitigate traffic impact from the new Des Moines regional jail.
The misdemeanor jail will be located on a 14-acre lot at South 208th Street and 18th Avenue South in Des Moines. But the access road to the jail is off of South 200th Street on 18th Avenue South in SeaTac.
The compensation fee is equal to the city's traffic mitigation fee for developers, according to Johnsen.
Officials from SeaTac, Des Moines, Burien, Tukwila and three other partner cities participated in a groundbreaking ceremony for the new jail on Aug. 10.
The 668-bed facility is expected to open in mid-2011.