City Council Opposes Initiative 1033

October 13, 2009 – The Normandy Park City Council, in a unanimous vote, adopted Resolution No. 819, Stating the City Council’s Opposition to Initiative 1033 on the November 3, 2009 General Election Ballot. The City Council’s action followed a presentation by City Manager Doug Schulze, which explained how Initiative 1033, if passed, will reduce future revenues generated by the City by a projected amount of $500,000 annually.

City Manager Schulze reported that due to revenue shortfalls in 2009, approximately $400,000 has been cut from the budget and additional cuts of $500,000 may be necessary in 2010 before any further reductions required by Initiative 1033 are considered. The City of Normandy Park has an annual operating budget of $4.3 million.

I-1033 is intended to reduce property taxes over time. Property tax is a regressive tax, which means the amount paid increases as the value of property (wealth) increases. As a result, if passed, I-1033 shifts the tax burden to progressive taxes (sales and utility), which is paid equally by everyone regardless of income or wealth. Based on the projected $500,000 annual impact to the City of Normandy Park, the benefit of I-1033 would be approximately $180 for the owner of an average home in Normandy Park. However, the owner of a $6.0 million commercial property in Normandy Park would see a benefit of approximately $1,200 annually.