The City of Bothell has announced that ... due to the loss of two major revenue sources in addition to a difficult economy, they are looking into several ways to cut costs and raise revenue. One of the proposals that the city council will consider in June is raising business license fees.
One of the lost revenue sources was a streetlight fee of $19 per household that was eliminated for 2010 and the other was a broadband utility service fee that was previously collected and then paid to cities.
These two sources amount to a total loss of over $1 million annually.
Bothell’s lean organization and ability to draw on reserves has given the city the ability to weather the difficult economy better than most cities.
Bothell has also been able maintain one of the lowest property tax levy rates in the state. Among 281 Washington cities, over 230 cities have higher tax rates than Bothell’s. However, continuing to draw on reserves to make ends meet would put Bothell in financial risk. In order to sustain a balanced budget, the City is reviewing all expenses and sources of revenue, making cuts where it can, and raising fees to more equitable levels when the fees have not kept pace with the region.
Fee increases would impact Bothell business as follows:
(Large Company: 800 employees, 60,000 sf, $10,000,000 annual revenue)
Medium Retail Store
(Medium Retail Store: 25 employees, 10,000 sf, $1,000,000 annual revenue)
Small Independent Business
(Small Independent Business: 2 employees, 1,500 sf, $100,000 annual revenue)
• Revenue raised from the business fee increase will be channeled into road improvements in order to directly benefit the businesses, employees and residents of Bothell.
• Even with the proposed fee increases, businesses still pay less taxes and fees in Bothell than they would in neighboring cities.