Vision and Goals For Tacoma Pierce County Economic Development:

Foster Business Development, Growth and Retention in Tacoma

and Pierce County

October 2, 2013

Proposition 1

City leadership has recognized the spending decisions of previous have left the city less competitive and without the financial where with all and tools to address even basic road maintenance and safety

Proposition 1, while well intentioned begs a basic question, does it help or hurt the efforts to achieve a prosperous business climate?

Lets look at a description of benefits…

FREDRICKSON

JBLM

• Port Maritime Industrial• Nalley Valley• Medical Mile

FIFE

U.P.

LAKEWOOD

LITTLE TO NO BENEFIT TO THESE CUSTOMERS

Residential

Comm Industrial

99%

1%

40%

40%

Value Propositionannual % cost per customer class Annual % Benefit

Tax Hike $$

Tax Hike Benefits

Tax Hike $$

Tax Hike Benefits

Fiscal Sustainability Task Force Update• The City of Tacoma has an ongoing structural budget

deficit in the City’s General Fund. Expenditures are growing faster than revenue. This difference is significant and not temporary. It is an immediate and long-term problem that threatens the City.

• General Fund expenses outpace revenue.• No borrowing capacity.– 1995 Debt: about $250 per capita– 2012 Debt: about $1,300 per capita (400%

increase)• No/limited reserves.

• General Fund expenses outpace revenue.• No borrowing capacity.

1995 Debt: about $250 per capita 2012 Debt: about $1,300 per capita (400%

increase)• City has No/limited reserves.• Many task force proposals for additional revenue

and cost cutting.• Focus on keeping Tacoma competitive.

Fiscal Sustainability Task Force Update cont’d

SUMMARY

• 33% tax increase on businesses power, gas and telephone usage

• Little to no benefit to Tacoma Pierce County Businesses

• REAL Impediment to our collective goals to develop, grow and sustain a healthy business climate

• There is no quick fix to our problem. • The path forward will be difficult. • Obtain the Fiscal Sustainability Task Force

recommendations.• Design a fair and comprehensive plan to ensure our

City’s fiscally sustainable future.

Support Needed Now

BOTTOM LINE: WE NEED YOUR SUPPORT FOR THE NO CAMPAIGN TO DEFEAT PROPOSITION 1

Stop Higher Utility Taxes2602 So. 38th Street, PMB 112

Tacoma, WA 98409