A few sparks flew during the Kent City Council public hearing on the 2012 city budget Tuesday and it may not be the last time before the budget is passed.
Members of the Kent Chamber of Commerce and residents have been asking the council during the past few months to not levy nearly $5 million in property taxes for the 2012 budget. The money would come out of the general fund.
Some council members, including Councilwoman Elizabeth Albertson, have argued the city must collect this money to provide essential services.
The issue revolves around the Kent Regional Fire Authority which was established in April 2010 following a public vote. The fire authority merged the Kent Fire Department and Fire District 37 into a single government entity with its own taxing authority.
The city’s general operations levy in 2010 was for about $2.36 per $1,000 of taxable property.
State law designated $1 would transfer to the fire authority.
The group asking for the taxes to not be collected contend that about 38 cents per $1,000 was kept by the city that would have been used for fire department operations. This adds up to about $4.9 million.
Other residents noted their property tax bill increased although they thought it would decrease when the fire authority was formed.
According to Bob Nachlinger, city finance director, “it is inaccurate to say taxes went up. (A property owners) tax bill went up, but the property tax did not.”
Nachlinger said a property owner’s tax bill would have increased for the first half of 2011 because of voter-approved bonds and levies, including school and library measures. Also adding to the bill was the new fire benefit charge that was added by the fire authority, not the city.
The fire benefit charge varies by the home or business and is dependent upon assessed fire risk.
Nachlinger also said that when the fire department was part of the city, the property tax collected for police and fire covered only 60 percent of the operating budget. The remainder came out of the general fund and was paid for with sales taxes, fees and other revenues collected.
During the public hearing, one of the more testy exchanges came when Kent Chamber of Commerce Executive Director Andrea Keikkala testified.
“The Kent Chamber of Commerce requests the city of Kent does not build the 2012 budget with additional money generated from the property tax regarding the fire benefit charge,” Keikkala said. “The chamber understands the amount to be $4.94 million per year…. We request here again tonight the city of Kent reduce the property tax in the city by reducing the city’s tax rate by the agreed upon $4.94 million.”
Albertson asked Keikkala if she had a list of suggestions for “program cuts.”
Keikkala said she did not have a list of program cuts, but she referred to the recommendations for voter-approved bonds and car tab fees from the Transportation Master Plan Citizen Committee as options for raising funds.
“The Kent Chamber has asked for this multiple times to be explored,” Keikkala said. “And we have offered our support for an educational campaign regarding the two funding options.”
Albertson replied that was “helpful for funding transportation, but that doesn’t help us with general fund revenue. So would you be comfortable with the council cutting nonessentials such as the money we use to support the chamber of commerce?”
Keikkala responded, “I don’t think that is a very fair question to be asking right now.”
The director stated the chamber has had difficulties like many in the community including reducing staff and delaying work “while we weathered the economic storm.”
Albertson continued the exchange with Keikkala.
“So you don’t have any concrete ideas this evening,” Albertson said. “I look forward to a list being generated by the chamber in the future.”
As the public hearing was closing Albertson stated, “The property tax rate is actually lower. The rate the city of Kent is collecting is actually lower and saying that the rates are higher over and over again does not make it true.”
Albertson went on to add the city could have collected at a higher rate, “but we realized that everyone is hurting…. To say that we didn’t feel it is hurtful for me to hear, but I can take the swings and I can take the arrows. That’s the job I signed up for.”
Kent Mayor Suzette Cooke is scheduled to present a preliminary budget Oct. 4 to the council. A second public hearing on the budget is set for Oct. 18.
The council is scheduled to adopt the budget on Dec. 13.
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