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City of Kirkland

Proposition No. 1
Utility Tax

The City Council of the City of Kirkland adopted Resolution No. R-4771 concerning increasing the tax on electrical energy, natural gas, and telephone services. If approved, this proposition would authorize the City to increase the tax on electrical energy, natural gas, and telephone services from the current 6 percent to 7.5 percent in order to provide revenues to create a more sustainable budget for the purpose of maintaining existing services, including parks, public safety, neighborhoods and other city services. Should this proposition be approved?

YES

NO


The purpose of this Proposition is to preserve the City of Kirkland service levels that were reflected in the City’s 2009-2010 adopted budget, which assumed a voted increase in the tax on private utilities. The City must adopt and maintain a balanced budget. The City’s revenues have not kept pace with the increased cost of providing City services. Without additional revenues the City will need to reduce the maintenance level of City parks and related programs, neighborhood liaison functions and other Police services, support for volunteer programs and other expenses in the Fire Department, funding for neighborhood traffic control, and other City services.

The effect of this Proposition would be to raise the utility tax from 6% to 7.5% on privately-provided utilities, including telephone, electricity, and natural gas. It is also the City’s intent to apply the same amount of tax increase to cable services. This is a 1.5% increase that would raise approximately $2.24 million in revenue per year. A customer’s monthly bill for telephone, electricity, natural gas, and cable would be increased $1.50 per $100 of utility charges for residential and non-residential customers. It is estimated that this proposed utility tax increase of 1.5% would result in approximately a $6 increase per month per household ($72 per year).

If this Proposition is rejected, the City’s utility tax will not increase and service levels of parks, public safety, neighborhood, and other services would need to be reduced.

The economic downturn is devastating to cities—Kirkland is no exception. The city responded with significant cuts; we’ve lost 35 full-time positions, and our remaining employees agreed to forgo cost of living increases in 2010. But that isn’t enough.

Without the 1.5% utility tax increase, even deeper cuts will be required. Some examples: We will lose youth and senior programs, pedestrian safety efforts, and neighborhood traffic control programs. Roads will deteriorate, and overgrown shrubs will obscure intersections. Our beautiful parks, the pride of Kirkland, will languish; maintenance will suffer, litter will increase, and the quality of sports fields will decline. We will lose concerts in the parks and many lifeguards. Juanita Bay Park Rangers will lose city support for wildlife habitat protection.

To keep the present essential levels of service and to help stabilize our city’s revenue in the future, we are supporting this utility tax increase of $6.00 per month for an average residential customer. Remember, with this tax you have some control—reducing your utility use will reduce your tax. This tax is not a cure-all, but without it many city services will vanish.

Vote Yes to Raise the Utility Tax by 1.5% — preserve Kirkland’s quality of life.

Are they kidding – a tax increase on people and employers who are struggling to pay their bills in this economy? Is government working for us or against us?

Council says they want to continue providing essential services at current levels. If they are sincere, essential services will continue to be funded regardless.

Using the city’s own service matrix that helps identify “core” services in a “sustainable” budget, at least $3.8 million can be saved without reducing services to citizens. It makes the $2.2 million tax unnecessary.

Council’s spending policies have gotten us into a growing $10 million hole, even more with annexation. Yet the Mayor said the citizens are capable of paying for it. His statement is reflective of the Council’s desire to take on more debt even when it’s not necessary. They denied us a vote then. Now they want it.

Public employee benefits will continue to grow. Ours will go down. Our services are already being reduced, even more with annexation. The council doesn’t want a “sustainable” budget. They want sustainable tax increases whether they’re essential or not.

Take the time to get the true budget facts at

www.ci.kirkland.wa.us/budget .

Employee layoffs and pay reductions have already happened; the city has cut to the bone and drained critical reserves. Now it is up to us as a community to decide what level of service we want. We can invest this small amount in our city or let our town languish in disrepair.

Support Kirkland – Vote Yes to Preserve Our Quality of Life.

 

STATEMENT PREPARED BY: Sharon Sherrard, Tom Sherrard, Carolyn Hitter

 

Council mismanagement created the devastation. Few employees lost their jobs, not 35. Be factual. Highly paid manager assistants serve the Manager, not citizens, and positions whose abridged responsibilities do not justify their cost should be reduced. For every assistant released, we could have 2 to 3 more city workers serving citizens. Let’s restore unnecessary service cuts. More money for mismanagement reduces our citizens’ quality of life. Voting NO will improve it. We have budgets too.

 

STATEMENT PREPARED BY: Robert L. Style, Mike Nykreim

 

RESOLUTION R-4771

 

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KIRKLAND PROVIDING FOR THE SUBMISSION TO THE QUALIFIED VOTERS OF THE CITY OF KIRKLAND AT THE NOVEMBER 3, 2009, GENERAL ELECTION OF A PROPOSITION TO INCREASE THE UTILITY TAX IMPOSED UPON ELECTRICAL ENERGY, NATURAL GAS, AND TELEPHONE SERVICES FROM 6 PERCENT TO 7.5 PERCENT IN ORDER TO CREATE A MORE SUSTAINABLE BUDGET FOR THE PURPOSE OF MAINTAINING EXISTING CITY SERVICES, INCLUDING PARKS, PUBLIC SAFETY, NEIGHBORHOODS AND OTHER CITY SERVICES.

WHEREAS, RCW 35.21.870 permits cities to impose a tax on privately-provided electric, natural gas, or telephone services at a rate of up to 6 percent by legislative approval, and at a rate that exceeds 6 percent if approved by a majority of the voters of the city voting on such proposition; and

 

WHEREAS, the Cable Communications Policy Act of 1984 permits cities to increase the tax rate on cable television without a voter approval as long as the tax is not discriminatory against cable operators and subscribers; and

 

WHEREAS, increasing the tax on electrical energy, natural gas,  and telephone services, and cable services from 6 percent to 7.5 percent would result in additional total revenue of approximately $2.24 million annually; and

 

WHEREAS, revenues are needed to create a more sustainable budget and provide funds to maintain existing City services, including parks, public safety, neighborhoods and other City services; and

 

WHEREAS, the City Council of the City of Kirkland finds it is appropriate to submit to the voters of the City of Kirkland a proposition to increase the tax on electric, natural gas, and telephone services from 6 percent currently taxed to 7.5 percent, which would also be applied to cable services, in order to provide revenues to create a more sustainable budget for the purpose of maintaining existing City services, including parks, public safety, neighborhoods and other City services.

 

NOW, THEREFORE, be it resolved by the City Council of the City of Kirkland as follows:

 

Section 1.  A proposition authorizing the City to increase the utility tax imposed on electrical energy, natural gas, and telephone services, for a total of 7.5 percent, in order to provide revenues to create a more sustainable budget for the purpose of maintaining existing City services, including parks, public safety, neighborhoods and other City services, shall be submitted to the qualified electors of the City at the general election to be held November 3, 2009.  The intent of the City Council is to increase the tax on cable services by an equivalent amount.  The King County Elections Director is requested to assume jurisdiction of and to call and conduct such election and to submit to the qualified electors of the City the proposition set forth in Section 2. 

     Section 2.  The ballot title shall read as follows: 

 

CITY OF KIRKLAND

UTILITY TAX

 

The City Council of the City of Kirkland adopted Resolution R-4771 concerning increasing the tax on electrical energy, natural gas, and telephone services.  If approved, this proposition would authorize the City to increase the tax on electrical energy, natural gas, and telephone services from the current 6 percent to 7.5 percent in order to provide revenues to create a more sustainable budget for the purpose of maintaining existing services, including parks, public safety, neighbor-hoods and other city services.  Should this proposition be approved?

 

 [  ] Yes

 [  ] No

 

Section 3.  The City Council intends to increase the tax on cable services from the current 6 percent to 7.5 percent.  If the voters authorize the increase in the tax on electrical energy, natural gas, and telephone services from the current 6 percent to 7.5 percent, the increased tax on electrical energy, natural gas, telephone, and cable services would result in additional revenue of approximately $2.24 million annually.

 

Section 4. The City Clerk shall file a certified copy of this resolution with the King County Elections Director.

 

              Passed by majority vote of the Kirkland City Council in open meeting this 4th day of August, 2009.

Simple Majority (RCW 35.21.870)
1232 en-US Production

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