Yakima City Council settles on $6M tax hike, $3M in cuts to plug budget deficit

(The Center Square) – The Yakima City Council cleared the way on Tuesday for voters to weigh in on $6 million tax hike this fall, paired with $3 million in cuts to balance another budget deficit.

The officials addressed a similar shortfall last year and now say revenues aren’t keeping up with inflation as pandemic relief funding dries up. They also balanced an $8.5 million deficit in 2023, but those cuts kept services afloat without tackling rising costs, and temporary fixes continued.

The dais voted 5-2 on Tuesday, directing staff to prepare a ballot resolution for the property tax levy. The council will reconvene for another special meeting on Thursday to vote on sending the proposal to the Yakima County Auditor’s Office, with deadline to do so approaching on Aug. 5.

“Any way I go, people are mad about something when it comes to this budget,” Assistant Mayor Matt Brown said. “They don’t want us to cut. They have also told us what they don’t want us to tax … The reality is that someone is going to be upset about something, no matter what we do.”

The council had already asked staff to draft the $6 million levy on July 1, but then tabled its vote to send the measure to the county, allowing for further discussion. Several levy and cut options were presented on Tuesday, ranging from $1.8 million in reductions to the total $9 million deficit.

The $3 million in cuts could eliminate funding for lobbying, council travel, fireworks, graffiti removal, adult and youth sports programs, sidewalk improvements, crime-free rental housing, and more. It will also reduce funding for snow and ice control, a clean city program, legal and crime analyst staff, animal control, and more.

According to a presentation, around 16 people may lose their jobs due to the cuts. However, relying solely on cuts would’ve increased that figure to 54 positions. A $9 million reduction would’ve also had significant impacts on public safety, as it would close a fire station and several police units.

“Quality of life rests right on the shoulders of emergency services,” Konner Hopkins, executive director of Yakima Greenway, said. “There is no quality of life without fire and police response.”

If approved by the council on Thursday and then by voters this fall, a $6 million property tax levy will cost property owners around 50 cents per $1,000 of assessed property value. For those with a median property value of $365,000, the tax hike would cost an additional $182.50 annually.

U.S. Census data shows that nearly half of Yakima residents don’t own the home they live in, so renters would likely bear much of the tax burden. Around 17% of residents live in poverty, more than the state and national rates, as the city’s median household income sits below $60,000.

“We all ran on not raising taxes,” Councilmember Leo Roy said before voting in opposition to Tuesday’s motion. “Don’t know what it is yet, but [City Manager Vicki Baker’s] got some ideas, and she will come up with the difference in revenue without taking it to the property owners.”