FSP FAQs
Why are expenses growing faster than revenues?
Due to state-imposed 1% limit on property tax growth, relatively flat growth in other revenues, unfunded state and federal mandates, and other factors, revenues are not keeping up with the high inflation rates and expense costs of the City.
How do Kenmore resident's overall tax burden compare with other communities?
In the FSP Agenda for 02/21/2024 are power point presentations on Fiscal Capacity and the Price of Government which show several demographic and tax rate comparisons as well as full time employee count per capita between Kenmore, Bothell, Lake Forest Park, Mercer Island, Mill Creek, Mountlake Terrace, Shoreline and Woodinville. See the link here: https://www.kenmorewa.gov/government/departments/finance-administration/financial-sustainability-plan
What are Kenmore's revenue sources?
Property tax, Sales tax, Utility, and other taxes make up over 76% of the City's General Fund Revenue per the adopted 2023-2024 biennial Budget.
How long has the City portion of the property tax been capped at 1%?
In 2001, Initiative 747 passed by voter approval, capped the yearly property tax increase at 1%. If the City does not increase regular property taxes in a given year, the allowable 1% increase can be “banked” and added to the 1% in a subsequent year.
How were the FSP task force members selected?
In October 2023 city residents and business owners were invited through the City’s website, Facebook page, e-news, Top4, and Listserv to apply for volunteer positions on the Financial Sustainability Taskforce. Applications and letters of interest were required, and applicants were then interviewed. Nine residents/business owners were chosen to serve on the task force.
Will my voice actually matter in how the City addresses the budgetary shortfall?
Yes! The City and the Task Force want input from the community to be able to deliberate solutions and write an advisory report to the City Manager. Join the Town Hall meeting on April 6th at 6:30pm at City Hall to learn more and contribute ideas.
Where can I find current Financial Sustainability Plan activities?
What does this budgetary shortfall mean for me? How does it impact me as a resident both financially and in terms of city services and activities?
It depends on what decisions are made. Taxes and/or fees may be increased or services and/or activities may be reduced to offset the potential of a future inability to sustain current levels.
Are the ongoing operational costs associated with new programs and services accounted for when decisions are made to move forward?
Whenever there is new construction, new parks, facilities, or major upgrades there are usually ongoing costs involved with maintenance, utilities, staff time and future repairs that are considered.
How are final decisions made? What criteria does the City consider when making them?
The City Manager will receive a written advisory report from the Task Force after they receive input from the community and deliberate their solutions. The City Manager will then write a report to the City Council with recommendations.
What portion of my property taxes go to the City?
Below is an example of the 2023 property tax breakdown for a home in Kenmore. The City’s operating portion is 8.35% of the total tax paid. Ex. If yearly property tax is $8,000, $668 goes to the City.
