Voice of the Mid-Columbia | Kennewick, Pasco and Richland, Wash. |
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closeWednesday, Oct. 07, 2009
Richland concerned about possible effects of I-1033 on revenues
By Michelle Dupler, Herald staff writer
Richland isn't looking to increase property tax collections to balance its budget for 2010, but city council members are worried about how a proposed initiative intended to lower property taxes might affect future budgets.
Dan Underwood, the city's finance manager, gave a presentation to the council Tuesday night showing projected revenues for 2010 are relatively stable after accounting for some bonds issued in 2009 that won't bring in money in 2010.
The city will bring in about $43 million to its general fund next year, including about $31.5 million in taxes.
Revenues for 2009 were projected at $44.6 million, but that includes $1.9 million in bonds. Subtract the bonds and baseline revenues for 2009 were $42.7 million.
The city expects to net about $300,000 in revenue growth from taxes, licenses and permits, charges for services, fines and miscellaneous other sources even though overall revenue appears to be down about $1.6 million.
That picture may change once voters have their say on Initiative 1033, which caps general fund revenue growth at inflation plus population growth. Any revenue collections over the cap must be used to lower property taxes unless voters agree to let government exceed the cap.
Using 2009 as a baseline, Underwood projected that Richland's revenue collections for 2010 would exceed the cap by about $481,000.
If the initiative passes, City Manager Cindy Johnson said she'd likely have to cut programs and lay off employees to reduce expenses enough to meet the cap on revenue.
The initiative goes to voters Nov. 3.
Also Tuesday, the city presented its Green Recognition Awards to area people and businesses who have demonstrated a commitment to the environment in 2009.
The awards are:
w Green Business of the Year -- Home Builders Assoc. Built Green Program
w Green Program of the Year -- Tri-City Herald Green Team
w Green Project of the Year -- Oasis School Green Grass Project
w Excellence in Environmental Stewardship -- resident Scott Albin and Hanford Department of Energy offices
w Environmental Excellence -- Greenies and Cartridge World
w Overall Environmental Effort -- Richland School District with honorable mentions to the Richland Public Library, Dan & Ellie's Wiggly Worms and resident Brian Upton.
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