At least one official admitted there was a bit of confusion surrounding a City Council vote on Kenmore property taxes for 2010.
Stating she believed it was necessary just to keep city taxes at the same rate as this year, Councilwoman Laurie Sperry said she was one of three councilmembers to vote in favor of legislation drawn up by the city administration.
Sperry said it was initially her understanding that because local property values will fall next year by an estimated 16 percent, the city needed to raise its tax rates just to stay even. Several councilmembers disagreed and voted the measure down.
At its Nov. 30 meeting, council passed new legislation, again proposed by the city administration. Sperry said the city used so-called banked taxing capacity to keep the tax rate the same, but allow the city to collect an amount in 2010 equal to what was collected this year.
Banked capacity accumulates over a period of time providing cities don’t increase their property tax rate. Kenmore has not done so since 2004. As in all Washington cities, Kenmore legislators can approve a 1-percent hike yearly without a public vote.
City Manager Fred Stouder recommended council take the 1 percent this year, but council thought otherwise.
“I can tell you we approved no new taxes,” Mayor David Baker said after the Nov. 30 vote. Baker previously had indicated he would not support any increase in the local property tax rate.
“Given the economic climate, I couldn’t back it,” Baker said.
He added a hope the city could look at some spending reductions instead, if necessary.
“I personally need for us to look at some other options,” Baker said.
According to Sperry, the property tax rate in Kenmore was set at 1.1 percent per $1,000 of assessed valued for 2009. For a home valued at $466,000, that equaled a tax bill for the city of $559.
If property values drop at the expected rate, that home valued at $466,000 this year will be assessed at roughly $388,000 in 2010. With that in mind, Sperry said council set the city property tax rate at 1.4 percent. That tax payer with the home soon-to-be valued at $388,000 will pay the same amount of property taxes to the city, namely $559.
In Bothell, city Finance Director Tami Schackman did not return a call requesting comment. Bothell City Council has a public hearing on adjustments to the city’s 2010 budget set for Dec. 15.
