Council opens public hearing on proposed 6% utility tax; staff say it will not solve long‑term imbalance alone

Summary

City finance staff opened a public hearing on draft legislation to impose a 6% utility tax (and companion use tax on brokered natural gas), describing it as phase two in a three‑phase fiscal plan. Staff estimated household impacts, proposed a low‑income rebate, and said the tax would be a temporary bridge to a voter‑approved metropolitan park

Sammamish finance staff opened a public hearing on proposed legislation to implement a 6% utility tax across utility categories and a companion use tax on brokered natural gas, laying out projected revenue scenarios and a proposed low‑income rebate program.

Vicki Carlson, finance director, told the council the city faces a structural general‑fund imbalance and that a community fiscal task force recommended three phases to restore sustainability: deep budget reductions already made, an automatic council authority utility tax (phase two), and a later voter‑approved metropolitan park district (phase three). Carlson said the proposal uses a 6% rate because state and local caps make that the highest rate council can impose without voter approval for electricity, gas and phone.

Carlson provided household examples: a household with about $300 of monthly utility bills would pay…

Council opens public hearing on proposed 6% utility tax; staff say it will not solve long‑term imbalance alone

Summary

Subscribe to keep reading