Recessions rewrite many rules, but never the one that dictates elected officials keep faith with their constituents.
The Puyallup City Council and city residents are facing questions of accountability as the council mulls how to deliver on a promise while keeping city government coffers healthy.
Last fall, city officials thought they would have no problem returning about $7.8 million in property and utility tax revenues to taxpayers in 2010. The tax cuts were intended to reflect the city’s cost savings in transferring fire services to Central Pierce Fire and Rescue.
Voters approved the merger in 2008 based partly on a promise that they wouldn’t be taxed twice for fire and ambulance services when Central Pierce began charging residents next year.
Then, the economy soured. Puyallup city government has fared better than many local governments, but its revenues like most are not meeting projections. In response, the city is eyeing some of that $7.8 million to help cushion the blow.
The council is considering scaling back its promise to cut taxes from $7.8 million to $6.1 million. Council members can make a good case for keeping some of the money, at least on a short-term basis, to reimburse the city for unexpected costs relating to the fire merger. But about $767,000 would go simply to help pad a shrinking general fund reserve.
Puyallup’s priority on building a healthy reserve is to be admired. But this time it would come at the expense of its taxpayers, many of whom are also suffering the ravages of the recession and don’t have the luxury of putting money aside.
City officials argue that they have done their part to curtail expenses by keeping some positions vacant, putting off a new salary schedule for nonunion city workers, curtailing summer parks programs and delaying some purchases.
As painful as those cuts probably were, they pale in comparison to the belt-tightening other local governments have done this year. Taxpayers are justified in asking whether Puyallup has done enough to improve its bottom line before turning to them for help.
More than just next year’s budget is at stake here. If city residents end up feeling duped, they are bound to be more wary next time the city or any Puyallup-area tax authority comes calling with a request for support.
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