Seattle City Council treads lightly on raising popular levy

Seattle property owners have a reputation as being unfailingly generous when it comes to opening their wallets and paying for better parks, schools, fire departments and housing for the poor.

In all, the owner of a $350,000 home in Seattle paid $3,461 in property taxes last year to the city, county, state and port district.

But how far are they willing to go?

Yesterday, as the City Council fine-tuned details of a proposed extension to the Families and Education Levy, council members carefully weighed the benefits of expanding or adding new programs against the risk of scaring off taxpayers.

"We cannot risk a failed levy, there is just too much at stake," said Councilman Peter Steinbrueck. "We have to remember that not everyone has shared equally in the prosperity of this region."

Voters first approved the Families and Education Levy in 1990 for $69 million, then renewed it in 1997 at the same amount for another seven years. It expires this year.

Seattle Mayor Greg Nickels has proposed raising the levy to $103 million, increasing the tax bite for the owner of a $336,000 home from $37 a year up to $58.

The City Council is now considering a $113 million proposal worked up by Steinbrueck and Councilman David Della. It would increase the average tax to about $64.

But other council members are suggesting additions to their basic proposal that could increase the levy amount -- and the tax burden -- even more.

Under one scenario, the tax would increase to $80 for an average homeowner.

Most say that's too high. A city survey done in March indicated that voters would oppose a levy over $120 million.

Some worry that taxpayers could be reaching a saturation point.

And with a still fragile economy, they might be feeling less generous than in the past.

But so far, Seattle voters seem happy to help pay for programs that help others and improve the community.

In February, voters easily approved continuing property tax levies for school capital improvements and operations, a total of $516 million. Last fall they approved a $167.2 million property tax levy to pay for fire department improvements, including new buildings and fire equipment.

But a couple of months earlier, voters turned down a 10-cent per cup latte tax that would have raised money for early childhood education programs.

Many speculated that it was the vehicle -- taxing lattes -- that Seattle voters didn't like.

Although many would argue that it doesn't always seem to happen, the goal of property taxes is to spread the tax fairly among property owners. A flat amount is set that will be collected. The amount you are taxed is based on the assessed value of your home compared with everyone else. If one person pays in a little more, everyone else pays a little less.

Despite recent success with property tax levies, the council is treading lightly.

"People are feeling a little bit overly taxed anyway. Don't forget that we are also paying taxes for the monorail and such things, too," said Della, chairman of the council's education committee.

"We want to pass a package that makes sense as far as supporting our kids. We also want something that will be reasonably priced," he said.

The goal of the Families and Education Levy is to reduce the achievement gap that is leaving minority and low-income students lagging far behind their classmates.

The levy pays for after-school programs, early childhood development initiatives, family support workers, health services and educational support for students.

Councilman Tom Rasmussen said he wants to make sure the levy includes plenty of money for early childhood education and assistance programs that start at infancy.

"I like the idea of making an early investment in people to ensure that they succeed, rather than having to fund problems and issues that they may face later in life, including criminal issues," Rasmussen said. "I see this as a preventative program."

But Rasmussen is also concerned about over-burdening taxpayers.

"Seattle taxpayers are incredibly generous," he said. "But there is a limit to what is fair and what we can ask from people."

As council members consider the education levy, they are also keeping in mind the future. There are already plans to ask voters for more money in the next few years for other needs.

Rasmussen said he hopes voters will support a levy to pay for human services that might come up in a couple of years.

There is also talk about possible levies for public safety and transportation needs.

In addition, a state education initiative might be on the November ballot if enough signatures are gathered.

Unlike some others, Councilman Richard Conlin isn't sold on the survey done last March showing that voters will turn down the levy at $120 million. "I have some real questions about making a decision based on one snapshot taken at one point in time," Conlin said.

With adjustments for inflation and other considerations, he said the $69 million levy approved in 1990 would be equal to a $104 million levy now.

Conlin said higher incomes since 1990 and higher property values help make a higher levy amount more palatable.

Councilman Jim Compton has indicated that he's uncomfortable with a levy higher than $115 million.

"This levy increase comes on the heels of a very deep recession that hit Seattle harder than other places," he said."The council has an obligation to be disciplined beyond what the polling says, and determine ourselves what the council can reasonably ask of overburdened property owners."

Marianne Bichsel, a spokeswoman for Nickels, said the mayor would have concerns if the council increased the levy amount much above $120 million.

"We gave the council a plan, they can adjust it and decide whether to put it on the ballot. We have to see what they come up with," she said. "We thought $103 million was an appropriate level, that it would be acceptable to the voters, and sufficient enough to meet our goals of reducing the achievement gap."