Action Item:
This is a first reading of Ordinance 2018-22. This ordinance would authorize the City to place on the November 2018 ballot a proposition to increase property taxes by an amount estimated to generate $15 million over 7 years to be used for non-motorized transportation projects.
Background:
The City Council convened a citizen task force in 2017 and asked this group to examine options and provide recommendations for funding infrastructure improvements on Bainbridge Island. The task force initially considered both non-motorized transportation projects and a Winslow-area parking garage, but subsequently limited its discussion to the non-motorized transportation improvement projects.
At the June 5, 2018, Council Study Session, the task force presented its programmatic recommendations regarding a set of non-motorized transportation improvements to the City Council. The recommendations included a revenue assumption of $15 million in new revenue to be dedicated to non-motorized transportation. After discussion at the June 5 meeting, the Council identified a property tax lid lift as the preferred method to raise the total of $15 million over a period of seven years.
A property tax lid lift is a voter-approved increase in property taxes above the one percent increase limit set by state law. The City will present a ballot proposition on the November 2018 ballot. If approved, the property taxes in 2019 will be increased by the amount shown in the proposition.
Proposed Ordinance:
The proposed ordinance provides for an estimated $2.2 million in additional property tax revenue in each year for the next seven years. This revenue will be used for non-motorized transportation improvements, as described in the ballot proposition.
The estimated increase to the property tax rate is $0.28/$1,000 of assessed value. This equates to roughly $185 each year for a home of the median home value of $660,000 for the seven years of the property tax lid lift. Property owners with homes of higher or lower values will pay more or less than $185 per year based on the value of the particular property.
The ordinance also provides for the proposition to be included in the local voters’ pamphlet. It authorizes the City Clerk to publicize and accept nominations for two committees, one which supports the proposition and the other which opposes it. These committees, each comprised of three members, write the pro and con statements and rebuttals which are included in the voters’ pamphlet.
The City must notify Kitsap County of its intention to place an item on the ballot by August 7 for inclusion on the November ballot. Therefore, the Council must approve the ordinance authorizing the proposition at the July 10 or July 24 meeting, or schedule a special meeting to do so.
The proposition must be approved by a simple majority of voters at the general election in November.
As described above, if the proposition passes, the change will be reflected in the property tax levy approved by the Council in November for collection in 2019.
Next steps/key dates:
- June 19 – first reading of the ordinance authorizing ballot proposition. Consider scheduling second reading in July.
- July 10/July 24 – consider approval of ordinance authorizing ballot proposition.
- August 7 –
· deadline for notice to Kitsap County of proposition
· deadline for pro and con committee appointments
- August 13 – deadline for pro and con committees to submit pro/con arguments for Voters’ Pamphlet
- August 20 – deadline for committees to submit rebuttal of pro/con arguments
- October 19 – ballots mailed to voters
- November 6 – General Election