Lakewood Council Unanimously Opposes Tacoma's Prop 1

The City of Lakewood has become the second city whose Council has voted unanimously to oppose Tacoma’s Prop. 1, a tax on utilities to fix potholes in Tacoma’s residential areas.

“It’s very unlikely that this (Lakewood) council would look to the cities of Puyallup, DuPont or Tacoma to fund our own residential road issues,” (Deputy Mayor Jason) Whalen said, according to The News Tribune, Oct. 22, 2013.

Lakewood Council members noted that several chambers of commerce (which included the Tacoma-Pierce County Chamber), voiced support for their resolution in opposition.

Lakewood Chamber Opposes Tacoma Utility Tax Prop 1

Lakewood Chamber of Commerce's Board of Directors Policy Position:  OPPOSE CITY OF TACOMA PROPOSITION 1

The City of Tacoma will ask its citizens to approve an additional 2% gross earnings tax on revenues earned by the city’s utilities in the November 5 general election ballot to mitigate costs associated with road improvements. This tax will be in addition to the current City of Tacoma 6% gross earnings tax charged Tacoma Power and its ratepayers. In addition, there is a state public utility tax of 3.873% on the gross earnings of Tacoma Power.

When Proposition 1 was first announced, Bill Gaines, the director and CEO of Tacoma Public Utilities, said that if voters approve a 2 percent tax on TPU’s earnings, the utility would be forced to cover its costs by raising consumers’ rates by a similar amount.

The vote on the tax will go to Tacoma residents, but TPU serves 160,000 customers - nearly half outside Tacoma.  If the tax is passed along, it would be passed along to customers in Lakewood, Fircrest, University Place, Fife, parts of Steilacoom, Joint Base Lewis-McChord and unincorporated Pierce County, as well.

Our argument against Proposition 1 as presented is that it unfairly taxes ratepayers outside the city limits of Tacoma.  The current 6% gross earnings tax goes to the city’s general fund and thus (arguably) provides all Tacoma Power ratepayers the benefits associated with funding the City of Tacoma’s general government functionality. This tax goes specifically to maintain the streets of Tacoma and does not provide non-residents or businesses any benefit.

Tacoma and Lakewood Councils Appointing New Councilmembers

With Doug Richardson's election to Pierce County Council and Jake Fey's election to the Washington State Legislature, both Lakewood and Tacoma have vacant council seats they are looking to fill.  Both appointments would only be until the end of the terms at the end of 2013.  This means that whoever is appointed will need to run for election if they want to retain the seat into 2014.

In Tacoma, the interview process is before Council during their noon study session on Tuesday, January 15th.  The City sent out a press release last week stating that they may appoint someone as early as the Council meeting on the 15th.  To read more about the seven applicants to fill the position, please visit The News Tribune here.

The Lakewood vacancy had 12 applicants.  The Council is hoping to complete their process for appointment by February 4th.  To read more about the applicants vying for the appointment in Lakewood, the TNT has covered it here.

As you review the candidates, please think about who you'd like to see representing your interests.  Please let the current councilmembers know who you'd like to see join them as the current council will be making the appointment.

Last Chance to Participate in Survey

Friday (Sept. 3) is the last chance for small businesses to participate in the Small Business Success Index survey.

Businesses have until midnight on Friday, Sept. 3 to participate in an online survey to measure their individual success against a standard of nationwide businesses. Respondents will be anonymous.

Businesses will get their own individual rating for a Small Business Success Index and through their participation will determine the Small Business Success Index for the community.

The survey also focuses on the local business climate to determine how supportive the area is for business success.

Chambers of commerce and business associations around Pierce County are collaborating with the survey, supported by Network Solutions and Rockbridge Associates. The Chamber will use the survey’s results to improve small business support services.

This will be an online survey only. Businesses may participate by following this link.