Nov. 29 — Council takes steps toward 2008

The Puyallup City council approves funding elements for fire services, street program and capital projects in next budget cycle

Chris Albert / of the Herald

The Puyallup City Council is moving forward with a $161 million budget for 2008.

The council took action in approving the second reading of the budget, along with several tax and levy measures that accompany the budget funding.

Before passing the budget ordinance, the council held a public hearing. Incoming councilmember John Knutsen urged the council not to raise any taxes to meet budget needs.

“There’s money in the city to do what needs to be done,” Knutsen said.

The council approved a 1 percent increase in property taxes. The council chose to stick with the spirit of Initiative 747, which is a voter approved measure that set property tax increases at no more than 1 percent annually, but was overturned by the Supreme Court.

The levy lift would establish about $90,000 in additional funds for expanded fire department staffing.

In 2007, property owners paid $2.22 per $1,000 of assessed value. Because of expanded growth property owners will pay $2.08 per $1,000 of assessed value. Without the 1 percent increase they would have paid $2.06 per $1,000 of assessed value.

Councilmember George Dill and Deputy Mayor Ken Martin voted against the increase.

“I support 100 percent firefighters but I believe the funds can be found somewhere else,” Dill said.

The council then unanimously approved a levy lift of the 2008 emergency medical services levy.

The voters approved $.50 per $1,000 of assessed value for emergency services.

“This is the annual clean up ordinance,” said City Attorney Gary McLean, who is also the acting city manager.

Because it was overwhelmingly the will of voters the council is justified in rasing the amount to what they want, said Councilmember Don Malloy.

The budget addresses funding a six-year local street program with more than $6 million. The six-year capital projects list sets funding at more than $15 million.

The funding for capital projects would come from traffic impact fees.

In conjunction with the 2008 budget, the council approved the increase of traffic impact fees, raising them from $3,000 to $4,500.

“This is one of those programs where growth pays for growth,” McLean said.

Malloy was quick to point out the increase would not apply to construction that is already completed or projects that have been given permits.

The increase puts Puyallup at about the middle of the road in what cities in Western Washington set their traffic impact fees, he said.

According to city projections, the fees would give the city and additional $18 million by 2014, McLean said. The reason for the increase is because the growing cost of construction, with cost having increased as much as 30 percent each year for the past few years, he said.

Councilmember Kathy Turner said she is concerned that the money that is being directed toward the street program leaves the capital projects funding at the mercy of whether growth occurs or not.

The city shouldn’t depend on new construction to pay for projects, she said.

This could leave already occurring projects, like the Shaw Road extension, without funding in later phases of the project.

Dill echoed Turner’s sentiment and said the state of the current housing market makes depending on new construction for funding unreliable.