Under state law, taxing districts, like the City of Bothell, are limited to a 1% annual increase in property taxes. The law’s intent is for cities to ask their voters to prioritize service levels they feel are important for their communities.
The cost of delivering basic police and fire services is increasing at a higher rate than 1% per year. Simply put, Bothell’s incoming tax revenues don’t keep up with essential police and fire service costs. In addition, to ease the tax burden on residents until the economy recovered after the Great Recession, the City did not take the allowed 1% property tax increase between 2007-2012. Therefore, the City had to spend down reserves to maintain current public safety service levels.
While additional tax revenue generated by new construction is added to the City’s tax roll each year, these new development revenues are related to increases in resident and daytime employment populations, thereby adding to the population served and resulting in more public safety calls for service. Plus, new challenges such as the opioid epidemic, homelessness, increased law enforcement requirements, etc. are further straining current police and fire service delivery.