Editorial: Lawsuit adds ugly twist to Federal Way utility tax

Federal Way failed to inform the public well in advance about the utility tax, and now the public will pay the price.

Last month, the Federal Way City Council approved a 7.75-percent utility tax for Lakehaven Water and Sewer District customers in the city. The tax is expected to generate almost $1 million and cover a budget gap of about $854,000.

Lakehaven is challenging the tax in court, while the city maintains the tax is legal. Both sides think they can win, which means there’s no telling how long the court battle will last.

About the only certainty is that the city and Lakehaven will burn plenty of money before it’s over.

As for the tax, Federal Way has long been offering a utility tax rebate to low-income and senior residents. The information is available online.

For a lot of residents, a few more dollars a month is negligible. But that’s not the point. It’s another tax, no matter how practical city leaders have tried to make it sound on short notice and with little to no public outreach.

Mix in the overall malaise that the public feels toward government, and it’s no wonder some people feel upset.

Taxpayers must ask why the city has a budget shortfall in the first place. Federal Way Mayor Jim Ferrell’s leadership has created opportunities – two examples include the arts center and Town Square Park – in what would otherwise remain an urban wasteland. It’s been much a different approach than the previous mayor’s “frugal innovation.”

In plain terms, the city needs money to fix a budget shortfall, and taxes raise revenue. Federal Way voters elected the mayor and city council members to make decisions like this one.

If voters are not satisfied with the results, they can make a change at the next election. In the meantime, the city and the mayor have a duty to keep government transparent. They need to help voters feel informed instead of being caught off-guard about budget problems and any tax-based solutions.

Some citizens are attempting to gather 7,000 signatures for a referendum that would ask voters whether the city should impose the tax or not. Regardless of the outcome, voters want to be heard.

In the meantime, the city and Lakehaven need to settle their legal score as soon as possible for the sake of Federal Way taxpayers.

This editorial reflects the opinion of the Mirror editorial board: Andy Hobbs, Mirror publisher; Mike Park, former mayor of Federal Way and small business owner; Sonja Bert, public information officer; Lori Cornell, pastor, Calvary Lutheran Church.