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NOVEMBER 1998

City to mull 8.71% property tax hike

SUNNYSIDE (Monday 11-9-98)--The city council last night discussed an 8.71 percent tax hike on real and personal property of Sunnyside residents

 

City staff asked the council to approve an ordinance setting an increased city tax levy for 1999, plus an ordinance justifying need for a 1999 tax increase.

 

City Finance Director Hugo R. "Bud" Schatz indicated the tax increase was necessary to maintain the "quality of life" in Sunnyside.

 

Some councilmen weren't convinced. They would like to see shifts in the existing budget rather than an overall budget increase and tax hike.

 

Schatz indicated the 1998 real and personal property levy was about $2.73 per $1,000 assessed valuation. So a person with a $100,000 home paid $273 in property taxes during 1998.

 

If approved, the 1999 levy would talley at about $2.95 per $1,000 assessed valuation. So the same person with the $100,000 home would pay $295 in property taxes in 1999, or about $22 more.

 

It's not only land and buildings--real properties--that would be taxed more in 1999. Taxes on a wide variety of personal properties--boats, campers, motor homes, and other big-ticket items--would be raised.

 

Nobody escapes property tax hikes. Owners pay right up front when they get their tax bill in the mail. Renters pay when their rents increase, because landlords aren't going to foot the bill when taxes go up on their residential or business property units.

 

Schatz said the levy would generate about $92,390 or 6% more in 1999 than the city received from property owners in 1998. These bucks would go to pay for increased current expenses, personnel costs, streets, the city library, and inflation.

 

But that's not all.

 

The city also needs to pull in another $570,000 via a 2.71% additional tax hike to pay debts it owes for the fairly new swimming pool and Law & Justice Center (principle plus interest).

 

Bottom line, the city in 1999 would bring in $1,124,440 or 106% of the city's 1998 take, plus the $570,000, for a total $1,723,190.

 

Consideration of the tax increase comes at a time when the assessment rates have stayed the same. That rate is set by the county assessor and the city has no control over it. In the past several years, the city has raised taxes 6% a year.

 

Councilman Don Vlieger does not approve a tax increase.

 

"Voters have told us they don't want increased taxes. If we had increased assessments, I could see it. If not, we need to stay lean," he said.

 

Mayor Ed Prilucik said he believes the tax hike is needed. He said citizens he talks to say the city needs to continue it's annual 6% increase to keep up with increasing costs. "I think the city needs it this year," he said.

 

Vlieger said it's not an either-or proposition. We have a preliminary ('99) budget now. We can look in other places (to find street money). My priority is not to raise taxes," he said.

 

Schatz said if the tax increase isn't approved the street fund will have to be cut by $63,000. He said the city will have to dip into reserves to finish street projects.

 

"Government can always use more money," Vlieger said.

 

Councilman Mike farmer said "I'm tired of Big Brother coming to tax us more. But as a council member, I see a need. So I believe we need to prioritize. Right now, I'm not in favor of a tax increase," he said.

 

Councilman Chad Werkhoven said the city now has only a preliminary budget. "We're asking citizens to pay more, when we don't even know what we're spending it for. It's tough to sell a tax increase anyway," he said.

 

Councilman Roy Anciso wanted more time to discuss budget details among staff and council before another public hearing is conducted on the budget.

 

City Attorney Mark Kunkler told the council any budget and tax discussions must be held in public, and in public hearings, crimping any private meetings in-between.

 

On a motion by Anciso, and seconded by Farmer, the council agreed on a split vote to hold a public hearing on the budget and tax increase at 7 p.m. Nov. 23. Voting against the measure were Don Vlieger and Mike Aguirre.

 

In other business, the council:

Presented awards to Community Accountability Board members for their volunteer work with Sunnyside kids. Superior Court Judge Susan Hahn and several court administrators congratulated volunteers as well.

Discussed the idea of creating a paid volunteer coordinator position. While the population is 13,000 in Sunnyside proper, the greater Sunnyside area hosts some 30,000. Councilman Chad Werkhoven, who also sits on the Chamber of Commerce, said such a coordinator might recruit, test, and train needed volunteers. "This is in the idea stage only," he said.