Business

Cityhood vote will impact business-related revenues

"As goes Silverdale’s proposed cityhood, so goes the business-related future of the Kitsap County budget.If Silverdale incorporation fails again, county budget planners expect the next five years to be $5.4 million leaner, thanks to Initiative 695.But if Silverdale passes--another election is being planned for early next year--county officials are planning for all-out famine. They expect to lose $5 million per year to Silverdale in sales tax alone.Also on the line are $9,000 in gambling excise taxes, $30,000 in admissions tax, $100,000 in cable television franchise fees and $140,000 in diverted road taxes which fund road-related services like traffic enforcement and prosecution.“The bottom line is that without Silverdale incorporation, we’re still facing a loss (in county revenue) because of I-695, but not on the same scale as we would have if Silverdale incorporated,” said county budget manager Ben Holland. “We will still have to make reductions in 2000, 2001, maybe 2002 to live with I-695. But we’re healthy enough now that as long as the economy keeps cooking and other revenue streams (like new construction and property values) increase, we’ll survive.”The cumulative effect of Silverdale incorporation on the county’s property tax rolls was expected to hit $14.6 million over five years. That would have demanded drastic slashing for a county that spent nearly $58 million last year.Holland predicted I-695 will force county government to stop growing, but Silverdale incorporation could drastically change the way it does business."

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