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Ocnber31,2001 <br /> tax revenue is permanently limited to 1%per year growth by Initiative 747— <br /> en if the sales tax resumes growing at the rate of 4%per year.If expenses <br /> continue to increase <br /> at 5%per year and combined revenues from all sources <br /> grow at the forecasted ram of approximately 2%per year,multimillion dollar <br /> shortfalls will result as follows: <br /> Year - Revenue Expense Shortfall <br /> 2003 $93,231,026 $100,822,455 $7,591,429 <br /> 2004 994,902,687 $106,023,555 $11,120,868 <br /> 2005 $97,383,836 $111,259,785 $13,875,950 <br /> 2006 $100,281,406 $116,423,796 $16,142,391 <br /> Property taxes,as the attachment indicates,are the largest source of City <br /> revenue,approximately 33%of all revenues.Thus,arty prolonged limitation on <br /> the rate of growth of the City's larges[source of revenue,at some point in the <br /> future,will impact the City's ability to provide the level of services our citizens <br /> now expect <br /> Sales Tax Forecast. During the pan 21 years,sales tax revenue in <br /> Everett has increased from$3,334,150 in 1980 to an estimated$19.5 million in <br /> 2001,an average annual increase of 8.80%. However,this statisc is <br /> misleading and must be clarified.In 1980 through 1982,the sales tax rate in <br /> Everett was 0.425%.The sales tax rate was increased to 0.85%in 1983 and <br /> has remained the same since 1983. Sales lavs m 1983 were <br /> $6,738,273,resulting m an average annual increase of 6.11%over the past 18 <br /> years.Bill Cushman has prepared a chart,which illustrates the City's sales tax <br /> revenues over this period. <br /> 477 <br />