Utility tax petitioned

More than 1,200 Edgewood residents have signed a petition rebutting council’s adoption of a utility tax.

Pierce County Auditor’s Office officially reviewed the petition and validated 1,201 out of 1,247 collected signatures.

The minimum amount of signatures required for Edgewood’s voting population is 950.

The funds the city hoped to generate through the new tax would have generated about $500,000 annually, covering Edgewood’s large budget shortfall.

Council is now deciding whether or not to place the tax measure on the ballot for a special election in April.

At a regular council meeting Jan. 26, council postponed any action whether or not to go out for a vote of the people. Participating in the election can be costly. It will cost the city upwards of $20,000 depending on how many other jurisdictions participate in the election. So far Edgewood and one other jurisdiction are considering going to a vote April 27.

In 2005, a similar resolution went to the voters after 1,809 residents petitioned the council’s decision. When the tax was placed on the ballot, 49 percent of the registered voting population cast their ballots and it was rejected by 87 percent of participating voters.

The council has opted to wait and see how two other local tax-increasing ballot measures fare on Feb. 9. The school district and fire district are both requesting levy approvals.

“It’s a pretty fair barometer – if the schools and the fire district fail miserably, we don’t have a chance,” Councilmember Dave Olson said.

Council decided to postpone the final decision on the election until Feb. 16.

Some Edgewood residents said they were pessimistic that the measure would be approved in an election.

“We went through the same thing a few years ago and I think (an election) will have the same outcome, unfortunately,” said former

Councilmember Colleen Wise.

Former Councilmember Bill Evans urged the council not to place the measure on the ballot, and suggested trying to approve a similar tax ordinance that may not get as much public opposition through petition.

“I suggest taking (the tax) off the table, redraft the ordinance…maybe (set the tax) at a different percentage,” he said.

Without the utility tax revenue, the city will have to dip into the strategic reserve fund, which sits at about $2 million. It may also be forced to make further cuts to the police force, a city-funded department which accounts for the largest portion of the general fund budget.

Council already made significant cuts to the budget during six budget workshops before approving the tax ordinance. This included several staff positions and three police department positions.

Total cuts amounted to about $50,000 and city officials say there is no more room to cut without severely impacting police and city services.

Even if the council decides to place the utility tax on the ballot and it passes, the city’s budget will still be taking close to a $400,000 loss of funds for 2010.

“We are in a crisis situation,” Councilmember Paul Crowley said. He urged the community to continue to bring forward their budget-saving ideas to council.

Council will make its decision on placing the utility tax on the ballot at a special council meeting Feb. 16. The Pierce County auditor’s deadline for inclusion on the April 27 special election ballot is March 12.

Commenting rules