DuPont’s mayor has proposed deep cuts and other tax hikes to balance next year’s budget in the wake of voters in the South Pierce County city soundly defeating a property tax increase in last week’s election.
Voters in the city of 8,600 people rejected Proposition No. 1 by about a 2-to-1 margin. The measure would have given the city authority to increase property taxes from the current rate of $1.16 per $1,000 of assessed value to $2.14 per $1,000 to pay debt on DuPont’s civic center.
With its failure, the city is faced with a reduction of services and the prospect of losing one-third of its firefighting force.
“The people have sent a message that they don’t want increased taxes,” Mayor Michael Grayum said. “We have a tough decision going forward. We have to respect that vote and live within our means.”
The election defeat is a major setback for DuPont, Pierce County’s fastest-growing city for the last decade. It boomed for years by attracting large employers State Farm and Intel, as well as military families assigned to Joint Base Lewis-McChord.
Adding to the challenge is that West Pierce Fire and Rescue recently notified DuPont it would stop providing paramedic response to life-threatening emergencies starting next year, leaving city officials to scramble to find and pay for a replacement.
“This makes our serious situation more serious moving forward,” the mayor said.
Before the election, Grayum had proposed two separate budgets for 2013 to account for different outcomes. His proposals are only recommendations; the City Council will deliberate in the coming weeks as it moves to approve a budget.
Council members recognized they had a difficult task ahead if voters rejected the levy.
“What you have here again is the good, the bad and the ugly,” Councilman Larry Wilcox said on Oct. 9, when Grayum presented his proposals.
The budget without the levy revenue would lay off a total of four firefighters, including three grant-funded positions, and one police officer. It also would end the contract with West Pierce for the city’s part-time fire operations chief.
The dire spending plan also would shutter the city museum, reduce irrigation of city parks and greenways, and end maintenance contracts for PowderWorks Park, the city’s largest park, and the greenway along Wilmington Drive.
Its budget also would increase water and stormwater utility taxes and institute a new business and occupation tax, which would not be assessed on businesses already paying a different B&O tax.
The mayor’s proposals would free up $770,000 in the city general fund to make a debt payment on the city hall, fire and police stations that opened three years ago. The city borrowed $18 million for the project.
DuPont’s mayor has proposed deep cuts and other tax hikes to balance next year’s budget in the wake of voters in the South Pierce County city soundly defeating a property tax increase in last week’s election.
City officials had thought real estate excise taxes – paid when property is sold – would help them make that payment. But the collapse of the housing market four years ago left the city short.
Since 2008, DuPont has made smaller cuts and borrowed from reserves to make debt payments, but reserves have dropped below the city’s comfort level. Other city revenues cover the remainder of each debt payment of about $1.2 million a year.
Separately, a federal grant that paid for three of DuPont’s 12 firefighters expires next year, and the city can’t keep them on the job unless they agree on another way to pay for them. The annual cost to retain them is about $300,000.
Fire Chief Greg Hull said the proposed cuts would mean the minimum number of firefighters on duty at any given time would drop from three to two, a staffing level below industry standards.
“It appears the department is taking the biggest hit, but it was a calculated gamble when we accepted the federal grant,” Hull said.
christian.hill@thenewstribune.com
WHAT: Public hearing on mayor’s proposed 2013 budget.
WHEN: 7 p.m. Tuesday.
WHERE: DuPont City Hall, 1700 Civic Drive.
MORE INFORMATION: Visit www.ci.dupont.wa.us.
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