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RES 95-41 PREPARATION OF ALTERNATE BUDGET IN EVENT THAT REFERENDUM 48 IS PASSED Resolution 95-41 A RESOLUTION of the City of Bainbridge Island, Washington, directing the Mayor to prepare an alternate budget in the event Referendum 48 is passed. WHEREAS the Washington State Legislature passed Initiative 164, requiring each local jurisdiction to prepare an economic impact analysis of the effect on property values for all land use regulations before they are enacted; and WHEREAS the law also requires each local jurisdiction to compensate property owners for any reduction in value when regulations impose a restraint of land use on such portion or parcel of property for public benefit including wetlands, fish or wild life habitat, buffer zone, or other public benefit designations; and WHEREAS the voters of the State will be asked to approve or disapprove that Initiative by voting on Referendum 48 on November 7, 1995; and WHEREAS the Institute for Public Policy and Management of the University of Washington completed an independent economic impact assessment of the fiscal impact Referendum 48 will have on local jurisdictions if it is passed; and WHEREAS the Association of Washington Cities, in interpreting the study, indicates that if Referendum 48 passes, a city the size of Bainbridge Island, with extensive shorelines and identified wetlands, can expect to pay from $700,000 to $1,200,000 annually to prepare the economic impact analyses and will probably incur legal fees and potentially required payments for "takings" amounting to more hundreds of thousands of dollars; and WHEREAS the normally expected financial resources of the City of Bainbridge Island are inadequate to meet such expenses while maintaining present levels of essential service; and WHEREAS, the City of Bainbridge Island is now in the process of developing it's 1996 Budgeti NOW, THEREFORE, BE IT RESOLVED that the Mayor, in addition to the budget being developed, is directed to prepare an alternate budget in case Referendum 48 passes. The alternate budget should include additional sources of revenue, including, but not limited to, increased business taxes, to-imposition of a utility tax, and an increase of property taxes up to the legal limit of $1.99 per thousand dollars of assessed valuation, and reductions in staff and services. BE IT FURTHER RESOLVED that the alternate budget show only the basic and necessary services the city must provide for the public health and safety of the community with any remaining revenues reserved for meeting any financial obligations imposed by Initiative 164 and Referendum 48. PASSED by the City Council this 19th day of October, 1995. APPROVED by the Mayor this 20th day of October, 1995 ATTEST/AUTHENTICATE: S P. KASPER, City Clerk FILED WITH THE CITY CLERK: October 19, 1995 PASSED BY THE CITY COUNCIL: October 19, 1995 RESOLUTION NO. 95-41