2000/10/25 Council Minutes - Laserfiche WebLink

October 25.2000 For four consecutive years,1996 to 1999,revenues increased from$70,507,722 to 590,607,947 or 520,100,225,an average of 56,700,000 per year or 8.7%per year. On the other band,projected 2001 revenues of$91,902,692 reflect an increase of approximately 51,200,000 over two years.an annual increase of only$600,000 per year or 0.67%over the most recent two years. There are many reasons for the revenue growth rate decline,including: • limimriom on the ten of growth of property taxes established by constitution,statute and ioilinrive; • the Snohomish County Assessor's reduction of the assented value of a major taxpayer which cat the City's property tax revenues in 1999 by 8421,654 and$421.969 iv 2000, • State legislation exempted certain manufacturing equipment from the sales tax begiming in 1996; • Initiative 695 eliminated motor vehicle excise tax renew; • reduced aircraft production and sales since the 1999 peak year have resulted in reduced B&O tax revenue;and • Congressional moratorium on interact sales taxes has reduced sales tax revenues. In November,voters will consider two mom initiatives which could further limit City revenues.Initiatives 722 and 745. Initiative 722 would restrict annual growth in the property rax to two percent(2%)or the change in the implicit prim deflator.whichever is less. Initiative 722 would also void tax and fee increases imposed by the City Council between July 1 and December 31,1999 and require the refod of all such taxes 469