Future initiative may challenge voter’s priorities

Published 12:20 pm Thursday, October 2, 2008

SNOQUALMIE – Snoqualmie is an expanding city that has been lining its pockets with money from an expanding home and retail base, but recent studies have shown that its government may have trouble keeping its level of services up.

During discussions on the proposed Snoqualmie Ridge Phase Two (SRII) development, Snoqualmie considered two studies about the financial situation of the city. While the studies, one of which was contracted by SRII developer Quadrant Corp. and the other by the city of Snoqualmie, reached different conclusions on how to deal with the deficits, both agreed that Snoqualmie will have problems funding basic services in the future.

Although other culprits are named, both studies cited Initiative 747, which passed in 2001 and limits all property tax increases to one percent, as a major reason Snoqualmie and other municipalities around the state will have funding problems. One study estimated that over the next 20 years, the city will accumulate a $3.7-million operating deficit.

Things could get worse if Tim Eyman, the Mukilteo businessman who fathered I-747 and other anti-tax initiatives, has his way. In the coming months Eyman will be ramping up an effort he announced last year to pass an initiative that would cut property taxes by 25 percent. The initiative would spare voter-approved taxes such as school capital levies, but every other taxing district falls under its provisions. According to state Department of Revenue official Mike Gowrylow, the initiative would save a homeowner $177 a year on a $162,000 (state median value) home. For taxing districts throughout the state, it is estimated to cost $550 million, according to Eyman.

Eyman said the initiative is needed to help common tax payers who are not privy to the kind of breaks companies like Boeing received.

“This helps everybody in the state,” he said.

What it would mean exactly for Snoqualmie is unclear, but city officials are not excited about it. Property taxes are projected to account for about 32 percent of all general-fund revenues in 2004, more than any other revenue source. As the City Council mulled Snoqualmie’s finances last November and December, discussions arose on how to fund the city’s future. The city has the power to put a levy lid lift before voters, but they know it would be a hard sell. Depending on what kind of deal it gets from Quadrant, Snoqualmie will have to fund many capital expenses in the future with help from a property tax that doesn’t even keep up with inflation or cost-of-living raises in salaries.

Snoqualmie Mayor Fuzzy Fletcher has said in the past that he is reluctant to cut any staff at the growing city, but that decision may be at hand unless changes are made.

“We are doing more with less but it is my opinion that we are at a split in the road now,” Fletcher said. “We will either have to reduce service to the citizens or raise taxes through a vote.”

How public safety will fare in all this has been a principle concern of the City Council that believes protecting its residents is a primary function of government. Leaving public safety alone, however, would be costly to other areas. Law enforcement, fire, emergency services, jail and dispatch services make up nearly half of the general fund, accounting for 48 cents of every dollar. Moreover, the city has only so much control over some of those expenses. The city contracts out its jail and dispatch services, which can only be supplied by one provider, at the cost of more than $100,000 each.

“I don’t see how we could support many of our normal services [if the new initiative passes],” said Snoqualmie City Councilman Greg Fullington.

Eyman said causing cities to look hard at their budgets is exactly what his initiatives were intended to do. He said the state was forced to do some soul searching in previous years to figure what the most important services it provides were, a process local municipalities and other taxing districts should go through as well.

“It’s about priorities, priorities, priorities,” Eyman said.

If public safety is a priority to the city, a levy lid lift will have to be considered, according to Snoqualmie Police Chief Jim Schaffer. Whether the city has its own police and fire departments or contracts them out, Snoqualmie will have to incur the costs. When North Bend considered contracting out its police services to Snoqualmie last year, Schaffer said there was not a significant difference between what the city offered and what King County did.

“You are going to pay what it costs to have police and fire,” Schaffer said. “Clearly, Mr. Eyman is not considering public safety.”

With North Bend’s fire service provider King County Fire District 38 losing its past two levy votes, Valley cities know that public safety is not above the public’s skepticism of higher taxes. Schaffer said the fire and police departments will have to present the benefits of funding public safety, such as a quicker response time, as well as prove no one in the departments are wasting tax money.

“We will have to show them [the voters] that we cut the fluff,” Schaffer said.

Fullington said it will ultimately be up to voters as to what kind of service the city can offer. Both sides of the tax argument can make their case, but it will be the voters who make the final decision as to what kind of city they want to live in and pay for.

“People will have to look at the city and decide if they want to pay higher taxes,” he said. “Hopefully, we won’t have to cut back.”

The city and Eyman will both be relying on the residents of Snoqualmie to come through in the months ahead.

King County Journal Reporter Jeff Switzer contributed to this story.