Not an official copy.

MOUNTLAKE TERRACE, WA
RESOLUTION NO. 539

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOUNTLAKE TERRACE ESTABLISHING THE CITY COUNCIL’S OPPOSITION TO STATE INITIATIVE 722

WHEREAS, the passage of Initiative 722 will abrogate the City Council’s authority to increase property taxes by limiting increases in property taxes and assessed valuation of property to a limit of 2% a year, which would not keep pace with inflation; and

WHEREAS, homes which increase in value rapidly will have their share of the tax burden shifted to other home-owning taxpayers; and

WHEREAS, the shift is likely to protect high value, view homeowners by shifting the tax burden to moderate income communities like Mountlake Terrace; and

WHEREAS, the rate of inflation is a standard used in binding interest arbitration for salary increases for Police Officers and Firefighters and a majority of property tax revenue is used to fund these costs;

WHEREAS, the passage of Initiative 722 will invalidate any new fees and/or fee increases adopted by the City between July 2 and December 31, 1999; and

WHEREAS, the City Council adopted a number of fee increases during this time period, including Recreation Fees, which would result in the loss of over $250,000 in revenue if invalidated; and

WHEREAS, the City Council established a Storm Water Utility rate and increased Water and Sewer Utility rates during this time period, which would result in the loss of over $1.5 million in revenue if invalidated; and

WHEREAS, a survey of Mountlake Terrace citizens determined a strong preference for fee increases to fund City services, rather than property tax increases; and

WHEREAS, the Mountlake Terrace City Council, in accordance with the wishes of the citizens, adopted a strategy in 1998 of focusing on fee recovery to reduce property tax increases; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOUNTLAKE TERRACE HEREBY RESOLVES:

Section 1. The City Council of the City of Mountlake Terraces takes an official position in opposition to Initiative 722 to nullify certain 1999 tax and fee increases and limit property tax increases to 2% annually.

PASSED by the City Council of the City of Mountlake Terrace City this 16^th day of October, 2000, and signed in authentication of its passage this 16^th day of October, 2000.

//s// David Gossett

Mayor David Gossett

ATTEST://s// Mavis Fey

City Clerk

APPROVED AS TO FORM: Gregory Schrag, City Attorney