Just as families all across Bothell are looking closely at their finances, the city is doing the same and wants you to be informed about how it is progressing. I would like to take this opportunity to let you know about the actions the Bothell City Council has taken to prepare our city to survive this recession and lead us out of it.
While many cities and counties are raising taxes, accumulating large amounts of debt and slashing services, Bothell is doing none of these things.
Lowering taxes, expanding tax rebates
Families, unlike governments, do not have the option of taking more money from others when they can’t pay their bills. The city of Bothell understands this and respects its citizens by living within its means. We have had no property tax increase since 2006, when I was elected mayor. We have actually reduced utility taxes by $375,000. Our low tax policies are attracting regional attention; in a recent study by the Washington Research Council, Bothell was found to have the most business-friendly tax environment of any city in the Puget Sound area. In addition, we doubled the size of the utility tax rebate from $50 to $100 and expanded the program to include low-income, as well as disabled and senior residents because our City Council understands that increasing utility costs fall hardest on those least able to afford them.
Reducing debt, improving our bond rating
One of the problems our country and many families face is increasing debt and the crushing interest payments that come with it. While some cities have taken on large amounts of debt, Bothell has resisted doing so. We have actually paid down our debt since 2006 from $8,854,233 to $6,594,849, and in 2008, Bothell’s bond rating was upgraded to “Aa3” from “A1” by Moody’s. A credit rating of “Aa3” is judged to be of “high quality and very low credit risk” while an “A1” is considered “upper-medium grade and low credit risk.” The practical implication of Bothell’s improved credit rating is it allowed us to refinance existing debt at a lower interest rate, saving taxpayers over $530,000 and enabling the city to pay down its debt more quickly.
Saving and investing strategically
You might ask, how is this possible?
When times were booming, we put in place a 20-percent reserve to make sure Bothell could provide essential services and plan for the future in a financial crisis. Even in these tough times, we have had not had to touch that reserve. The City Council developed policies to prevent one-time tax revenue from being spent on recurring city expenses. Bothell also received over $32 million in state, federal and local grants/allocations since 2005 and have been awarded an additional $53 million for various capital projects that will improve transportation and create local jobs.
In 2007, the City Council created a strategic capital investment plan to prioritize city spending. This plan received widespread praise and a Governor’s “Smart Communities Award.” Earlier this year, we completed a 3 ½-year planning process, enacting a community-based Downtown Plan that will improve the quality of life for Bothell citizens and help sustain vital city services.
By keeping taxes low, reducing our debt, setting aside a reserve and securing state and federal funds to build our infrastructure, our council and staff prepared our city to prosper in these challenging times and in the better days to come.
As your mayor, I’ve always welcomed your comments and ideas for our city. Citizen input has been vital to creating successful policies and keeping the council connected to community issues. Please feel free to contact me directly anytime at mark.lamb@ci.bothell.wa.us or (425) 368-4238.
