The Kirkland City Council unanimously passed a resolution objecting to anti-tax crusader Tim Eyman’s Initiative Measure No. 1033 (I-1033) during its Sept. 15 council meeting. I-1033 will appear on the Nov. 3 ballot, which will go out in mid-October.

“I think the reason the council unanimously opposes this is because like any successful business in Kirkland, if you don’t cover additional costs with additional revenue you will be forced to deliver a lesser product to the public,” said Kirkland Mayor James Lauinger.

The council approved the measure after holding a public hearing where the council received information from the Finance Department about the financial impact to the city’s general fund.

“I supported the council’s resolution to oppose Initiative 1033 because it would be very detrimental to Kirkland City government budgeting,” said Council member Jessica Greenway. “These are tough times that require prudent fiscal management. Taxpayers are struggling financially and governments are struggling financially. I believe we have the ability to work together to develop a sustainable budget for the City of Kirkland that will keep taxes fair and affordable and will provide the basic levels of service that make Kirkland such a great place to live.”

Using a six-year forecast, the city’s general fund would experience a reduction of $12-14 million in the first five years, which equates to a reduction in revenues from property taxes from $9.2 million (2009 level) to $6.7 million in year five. The move would increase the city’s dependence on sales tax, which is a more unpredictable revenue source. The city receives 14.5 percent of the property taxes collected from Kirkland residents. Those funds are used to support general fund services, according to the city.

“It’s the anti-community initiative,” said Council member Dave Asher. “I-1033 is a reckless attempt to neuter representative government. It will put our community efforts on a permanent recession footing, and move us toward a watch-peddler’s view that anything spent for government is too much. It will put our community efforts on a permanent recession footing, and move us toward a watch-peddler’s view that anything spent for government is too much.”

The initiative would apply to 2010 revenues with the limit not to exceed a cap based on 2009 revenues but would be adjusted annually based on the change in inflation.

“1033 jeopardizes valuable services that the city provides the public that we all have come to enjoy and expect,” said Lauinger.

According to a city official, I-1033 would limit any revenue received in a recovery from the current economic recession and any new revenue from future redevelopment of Totem Lake Mall.

This change would result in no new revenues to support city services that would be needed to serve the new major retail concern.

Advocates of the measure contend that I-1033 would give citizens more control over the growth of local government.

“We’ve had 11 months of scrutiny on I-1033. We started out as I-1031 and opponents thought its taxing limits should allow for both inflation and population growth, exempting federal funds and voter-approved increases,” Eyman told the Snohomish County Business Journal. “We listened, made adjustments, and refiled the initiative, making it even better by accepting some of their suggestions.”

The initiative would freeze future state, county and city spending at the levels of this year’s state budget. It would also allow for annual adjustments for inflation and population growth.

“Budget and tax decisions should be made by citizens through their elected representatives and by using their voices to support or not support tax increases that must be approved by voters,” said Greenway. “I-1033 takes government out of the hands of citizens and their elected representatives.”

Critics site the fact that due to the recession, the current state budget is one of the smallest in years. The Washington Office of Financial Management estimates that in five years, this would cut $5.9 billion from the state budget. But Eyman is suing the Office of Financial Management to change the details in the fiscal note the agency created for the voters’ pamphlet for Initiative 1033. The Office of Financial Management conducted the fiscal impact statement on I-1033.

To view OFM’s “Fiscal Impact Statement of Initiative 1033” visit www.ofm.wa.gov.