Greenstein to Lacey City Council: ‘I am 100 percent opposed to a councilmanic tax’
An advisory group known as the Regional Housing Council recently recommended the creation of a countywide home fund, an idea that would levy a sales tax in the county to generate funds for low-income housing.
That idea was met with alarm among some on Lacey City Council last month because the countywide home fund motion was made before the city council had a chance to discuss it.
“This was never discussed with council, there was no input from council and here our council member (Carolyn Cox) made a motion to have the county go forward with a home fund, which would tax the people of Lacey without us even having a conversation about it,” Councilman Lenny Greenstein said at the time.
But on Thursday, the council finally had its home fund discussion, learning how a sales tax might be implemented, how much money it would raise and how the money would have to be spent from Assistant City Manager Shannon Kelley-Fong.
The state Legislature has authorized that cities and counties can seek a 0.1 percent sales tax increase, either through voter approval, such as the city of Olympia did in 2018 to create its home fund, or through “councilmanic” action, in which the sales tax increase is enacted by a city council vote.
Kelley-Fong estimated that $1.4 million to $1.5 million would be raised annually. How that money is used is restricted, largely focusing on building or acquiring affordable housing, which can include emergency, transitional or supportive housing. The funds would target those who are at or below 60 percent of the area median income, which in Lacey is around $40,000, she said.
After Kelley-Fong laid the groundwork for the home fund, the council had a brief discussion.
“Everyone knows where I stand on this: I am 100 percent opposed to a councilmanic tax,” Councilman Greenstein said.
If Lacey doesn’t move forward with a home fund, though, the Thurston County Commissioners could vote to impose the tax on the entire county, including Lacey.
Although the county commissioners have said they will not move forward with a countywide home fund without the support of area cities, councilman Michael Steadman worries that a future county commission might feel differently.
“If the county does enact the tax, then all the control goes to them,” Steadman said. “That’s my main concern.”
Councilwoman Carolyn Cox pointed out that even if the county did move forward with a home fund, there would most likely be an arrangement between Lacey and the county.
“I can’t imagine that we wouldn’t have an interlocal agreement,” she said. “The county isn’t going to force us to do this.”
This story was originally published September 11, 2021 at 5:45 AM.
