The Normandy Park City Council, in a unanimous vote, adopted Resolution No. 819, stating the councilÃ¢â‚¬â„¢s opposition to Tim Eyman’s Initiative 1033 on the Nov. 3rd General Election Ballot.
The City CouncilÃ¢â‚¬â„¢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.
And as you may recall, Burien’s City Council also voted to oppose I-1033.