Due to spent down the reserves and being in jeopardy of having their bond rating downgraded, the city staff and council have identified the need to raise taxes.  

In addition to the loss of the streetlight fees and the broadband fund; the contract with Vulcan to design a new city hall, funding the City Manager's post-graduate education, payroll for two Assistant City Managers (instead of one), two failed annexation elections costs, the loss of business revenue with the stalled landing project, and speculative inflated real-estate ventures are seen as contributors to this. 

Connecting business and community Business Taxes and License Fees Update The City of Bothell has shared the following information about potential changes that we believe our business community should be aware of... Due to the loss of two major revenue sources in addition to a difficult economy, the City of Bothell is 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 one-million dollars 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.  For more information or for comments, please contact Deputy City Manager, Steve Anderson: 425.486.3256, steve.anderson@ci.bothell.wa.us or attend the Chamber's Business Advocacy Committee meeting on Tuesday, June 19 from 12:00 - 1:00 PM at the Bothell Police Department. Click here for a printable flyer Fee increases would impact Bothell business as follows: Large Company Current $5,098 Proposed $7,544 (Large Company: 800 employees, 60,000 sf, $10,000,000 annual revenue) Medium Retail Store Current $234 Proposed $952 (Medium Retail Store: 25 employees, 10,000 sf, $1,000,000 annual revenue) Small Independent Business Current $39 Proposed $55 (Small Independent Business: 2 employees, 1,500 sf, $100,000 annual revenue)

FACTS: * 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.

Bothell's taxes and fees compared to the rest of the region