Council makes steps toward ‘filling the hole’

In an effort to bail a sinking budget – $3.8 million deficit by the end of 2016 – Stanwood City Council will review options for plugging the holes next month.

Joyce Papke, city administrator, and Crystil Robinson, finance director, will bring two resolutions to the April 22 finance workshop, both of which relate to property tax rates.

One resolution proposes raising the EMS levy to $.50 per $1,000 of assessed value. It’s currently at $.37, and the added annual revenue would be about $100,000 a year.

The second resolution deals with a property tax levy lid lift, which would compensate city revenue for the six-year temporary levy lid lift that expired in 2009.

This resolution will be brought before council with a variety of options, including a temporary lid lift, a permanent lid lift and several different rates. The original lid lift began at $.82 in 2003, and over time decreased to $.54 as the value of properties rose. When it expired, the city lost about $450,000 a year in revenue.

One option council will look at is raising the levy back to $.82, while another option is raising it only enough to regain the lost revenue.

Both levies would need to be approved by voters this year. To make it onto the August primary election ballot, council needs to adopt the resolutions by May 25.

If council approves the resolutions, Stanwood-Camano Fire Department has agreed to help educate the public about the need for revenues, which are directly related to fire services.

“If we bring out and pass the property tax levy lid lift and the EMS levy lid lift,” councilman Bill Carlton said, “it takes care of the big piece we lost.”

Papke agreed, but pointed out that, based on projections, “the city’s still flat broke at the end of 2016. We’re not almost $4 million in the hole, but we’re still flat broke.”

Council also agreed to take a third look at an ordinance that would increase the cable TV utility tax to 6 percent. It’s currently at 3 percent.

Papke said all other utilities are taxed at 6 percent, as are most other cities in the area, so the increase makes sense.

Council held off on making decisions about several other options for increasing revenue, but is interested in finding ways to decrease expenditures.

Mayor Dianne White admonished council to prioritize services.

“If we’re not going to increase revenue,” she said, “what are we going to get rid of?”

Councilman Timothy Loney recognized there are no easy answers to the city’s dilemma.

“There’s often a disparity between the level of services citizens desire and their willingness to be taxed at the level necessary to pay for those services,” he said.

Council will continue to look for direction and solutions at their next finance workshop on April 22.

In other city council news:

• Council asked Papke to research what city-owned properties could be sold for revenue. Council understands this isn’t a way to fix the budget, but also feels citizens might be better served if those properties become part of the public tax-base again.

• Council discussed annexing library services to Sno-Isle Libraries. Sno-Isle has approached the city about this, but council wasn’t prepared to make any decisions yet.

• Andy Bullington, public works director, presented eight short-term facilities updates for council’s consideration. The highest priority, but also most expensive, are at city hall, the police station and the chamber of commerce buildings. All locations need extensive roof maintenance, and the city hall’s stucco is in dire disrepair. Leaks at city hall may have caused rot and structural damage.

• Mayor White ended the evening on a happy note: 767 “questers” participated in the Glass Quest and the opening of “Unclad” at Gallery by the Bay, was a huge success, with over 700 people on opening day.

The next council meeting is on April 8, 7 p.m., in the school district’s administration building, 26920 Pioneer Highway, Stanwood.

Staff Reporter Jeremiah O’Hagan: 629-8066 ext. 125 or ohagan@scnews.com.