By Gwen Davis

(Editor’s Note: The Times/News will present information on the SeaTac elected mayor proposition in the Oct. 28 print edition and online at www.highlinetimes.com)

At the Nov. 8 election, the city of Des Moines will ask voters whether to increase the Utility and Occupation Tax from 6 percent to 9 percent. The increased revenue would provide an estimated $1.6 million funding for restoration of several Des Moines Beach Park facilities and for the repair of city streets.

City Council members believe that efforts to repair deteriorating public utilities are needed to preserve the same quality of life for future Des Moines citizens.

These additional funds are needed because the funding source that the city has traditionally used to pay for capital projects – Real Estate Excise Taxes – has declined significantly due to the national recession and the associated reduction in property values, according to city officials.

If approved, the city estimates this additional 3 percent utility tax would cost a typical family $15 per month.

“The City Council looked for sources of revenue to rehabilitate the beach parks and approve funding for the street program,” said Tony Piasecki, Des Moines city manager. “We asked staff to come up with propositions and this was the option that would raise revenue for those types of programs.”

Dollars from the additional 2.5 percent (of the 3 percent) of the increased revenue would go towards repairing and maintaining Des Moines Beach Park facilities. Money from the additional 1.5 percent of the increase would be allocated for overlaying, repairing and renovating city streets.

The city acquired Des Moines Beach Park in 1988, using a voter-approved property tax levy matched by state and federal funds. Within the past two decades, however, park buildings have deteriorated due to heavy usage, age and earthquake and flood damage, according to the city.

For more than 10 years, many park buildings have been closed. The city has been trying to restore these facilities – which include historic buildings – for general public enjoyment.

The city formerly received matching funds from federal, state and local sources to keep various historic parts of the park usable. These grant sources, however, are no longer available.

If voters approve this proposition, the new funds will be used to restore and reopen various park lodges, cabins, cottages, bridges, roadways and parking lots, according to the city. If those facilities continue to deteriorate, a point will soon arrive when they cannot be affordably restored.

The repairs would cost an estimated $6 million. With the proposition’s new revenue, buildings and park projects would be available for public use within the next two to five years.

The proposition would also fund street pavement projects, which are many years behind schedule. It would cost at least $1.4 million per year to keep pavement conditions of city streets in acceptable condition and to minimize its overall life costs, according to the city. The city would strive to maintain geographic balance so that all parts of the city would benefit, as well as minimize disruptions to the community when work occurs.

In general, the city’s current 6 percent utility occupation tax is levied by the city on all private telephone, electric and natural gas businesses, garbage businesses, garbage collection services, cable television services and the city’s storm water utility. The tax is collected by the individual companies, which itemize this tax in their monthly billings to customers and then submit payments to the city.

The current private utility tax rate of 6 percent is the maximum allowed by statue without a public vote to increase it. Des Moines currently uses this revenue to pay for general government costs such as police, court services and senior services.

Piasecki said the City Council considered other options for raising revenue, as well. Increases in utility taxes, property taxes, bonds and vehicle fees where considered. “Those options are still available to the council,” he said. “If this doesn’t pass, we will ask about those options.”

The city noted that the money received and spent will be tracked so the public can be assured that their money is being used for these purposes and not for general expenses. Additionally, 1 percent of the tax increase would end once the 20-year capital bond to construct and restore the parks has been paid off, according to the city.