Comments on: City at a crossroads

By: Michelle Goerdel

Michelle Goerdel — Fri, 08 Aug 2008 23:06:25 +0000

The current structure is quite confusing but it was the only one a majority agreed upon at the time. As you probably remember there was quite a brouhaha about the initial suggestion of a head tax and a large scale wailing and gnashing of teeth before a compromise was finally agreed upon.

While there is only some disagreement with the head tax (some people will argue that ANY tax increase is wrong), the way the amount was decided upon was quite arbitrary rather than reasoned out. The city is in a hurry to plug the gap that we all admit has been coming for several years now- when have they not discussed the “structural deficit” in the budget process?

I only ask that, since they are delaying asking the citizens to vote on a tax increase because they want to study the issue and make sure they are doing the right thing, that they give the same amount of thought to what the city will be doing to the business community with a tax increase that can’t be voted on.

In my discussions with some of the larger businesses in the community the head tax itself and its size was not the issue, it was the lack of communication about what we would be receiving for that tax increase and how it might impact those businesses with low margins and high employee counts, especially in these uncertain economic times. It will in fact be a tax break for the smallest businesses that make up a large percentage of the businesses in the city.

By: Rob Butcher

Rob Butcher — Fri, 08 Aug 2008 22:55:51 +0000

Excellent point. Let us hope the City Council has the interests of the small business man in mind when they deliberate on the budget.

By: Michelle Goerdel

Michelle Goerdel — Fri, 08 Aug 2008 22:52:24 +0000

We’re trying to work with the city on an alternative not for the $90 per head tax but to help the businesses with high employee/low margins decide to stay open and stay in town. We’re hoping a credit for those businesses that generate sales tax to offset some of the large tax increase. I agree that the city also needs to work on their ever increasing tax needs, I was only discussing one portion of what is a very large and complicated argument.

By: al czervik

al czervik — Fri, 08 Aug 2008 19:58:05 +0000

Kirkand Council Members are elected at large: However the Council currently has 4 members who live in North Rose Hill! Lauinger, Hodgson, Asher and Burleigh. Greenway lives in Norkirk and McBride and Sternoff live in the Moss Bay Neighborhood. Personally I think that 2 from a neighborhood is enough represenation even if they are at large.

By: Downtown Kirklander

Downtown Kirklander — Fri, 08 Aug 2008 18:55:11 +0000

I agree with IOR that the Chamber has to come up with an alternative. As advocates for their business members, they are routinely in opposition to any plan that takes money out of businesspeople’s pockets. They need to suggest something and support it.

The current business license fee structure is silly. It is based on number of employees, and there are are giant jumps in fees at several points in their table: http://www.ci.kirkland.wa.us/__shared/assets/Business_Licence_Application_Fee_Worksheet109.pdf

For example, adding a 6th employee could cost you $525. That makes no sense. It should be more of a continous curve.

I guess like, say, $90/employee.

By: Inside Out

Inside Out — Fri, 08 Aug 2008 15:01:13 +0000

Michelle,
What alternative does the Kirkland Chamber suggest? If $90 head tax is not the best solution then we need other alternatives. When around 70% of our general fund goes to wages and benefits those have to be a part of the solution but they are not. The core of the problem is that Kirkland’s government is larger than Kirkland’s business and citizen communities can afford. This is a broken record and they have no solution to the problem.

By: Michelle Goerdel

Michelle Goerdel — Fri, 08 Aug 2008 14:53:16 +0000

I couldn’t agree more about Penny, I suggest that everyone interested in getting her to run again take the time to stop by the Grape Choice and personally give her your show of support (and pet the dogs of course!) I’m pretty sure she’s already considering running but the more positive feedback she gets the better.

We’ve got to do something about the budget and Penny is a no-nonsense, fair minded individual who will figure out a way to spread the service cuts and tax increases equitably rather than any sort of knee jerk reaction.

Everyone is going to feel some pain with this budget cycle, but the business community doesn’t feel that a good explanation has been made for why the city chose $90 per head for the head tax other than it is the same as Redmond’s. Well not actually- Redmond dedicates a significant portion of their head tax to infrastructure improvements but my understanding is that ours will all go to the general fund.

Its not the tax increase most of the business community is at issue with, just the lack of reasoning behind the size of the head tax and its damaging effect on the sales tax generating businesses like restaurants that have a lot of employees and thin margins. In my role as public policy chair for the Kirkland chamber, I hope to be able to help work out a compromise that allows the $90 tax but gives some sort of credit to businesses that generate sales tax for Kirkland.

By: Michelle Goerdel

Michelle Goerdel — Fri, 08 Aug 2008 14:35:09 +0000

Thanks Rob, I was going to comment on this but see that you have already taken care of it for me.

By: The Ghost of Peter Kirk

The Ghost of Peter Kirk — Fri, 08 Aug 2008 05:30:49 +0000

Yes, as Rob says, there are no districts. A Kirkland resident can file for any one of the Council positions up for election.

The next Council election is in November 2009, when the positions currently held by Lauinger, Hodgson, McBride and Burleigh will be up for election, per the city website. From this blog, it sounds like Penny Sweet will be asked to run against one of the first two.

By: Rob Butcher

Rob Butcher — Fri, 08 Aug 2008 04:49:55 +0000

For the record, the Kirkland City Council is elected “at large” which means that each council member represents ALL of the citizens of Kirkland, NOT just those from one district or another.