Published September 2002

Task force emerges
out of ‘head tax’ hubbub

When executives at AT&T Wireless assessed the impact of a proposed city of Bothell “head tax” on employees to finance transportation improvements, they characterized the measure as overtly punitive, untimely and unfair.

They weren’t alone. City officials were hearing similar protests from most of Bothell’s primary employers, which provide thousands of highly desirable, high-tech and biotech jobs in the North Creek and Canyon Creek business parks of south Snohomish County.

Assistant City Manager Manny Ocampo conceded that business opposition to the proposed $60-per-employee tax was “fairly close to unanimous.”

AT&T Wireless, with more than 3,000 employed at its Bothell call center, estimated the tax would cost it $180,000 annually, or more than $1 million over the six years of the tax’s proposed longevity.

The proposed tax strikes “at the heart of our business,” AT&T officials said, as well as other Bothell employers “facing the same competitive pressures in these difficult economic times.”

The strong protests, however, did not obviate the city’s need to raise millions of dollars to address its significant and growing transportation and public safety problems. Without solutions, the city risked attracting an unfavorable reputation for business expansion and recruitment.

An irreconcilable standoff between government and business? A case of damned if you do, damned if you don’t?

Not at all, thanks to open minds and creative thinking on both sides, plus assistance from the Economic Development Council of Snohomish County staff.

By month’s end, a newly appointed transportation advisory task force will begin studying Bothell’s transportation and public safety problems and considering alternative funding sources. The task force’s creation resulted from a realization that solutions must come from and be supported by all sectors of the community.

Even at the height of the “head tax” criticism, many sides were seeking a solution.

In his letter opposing the “head tax,” AT&T’s director of external affairs, Dan Youmans, proposed such a committee to study alternative funding sources.

Bothell City Councilman Richard Paylor, who also is an EDC board member, recognized the strong business “head tax” opposition “as a lot of negative energy that had the potential to be converted into positive energy,” he said.

Enter Diana Dollar, the EDC’s policy analyst. Talking to both city government and business representatives in Bothell, she sensed a strong need that the city’s critical transportation and public safety issues be addressed and that new and comprehensive solutions be recommended.

“We applied the experience gained by the cities of Redmond and Renton in responding to similar situations and suggested Bothell form a comprehensive transportation task force to address the problems and look for new solutions,” she said.

The City Council adopted the idea this summer. Composed of six business representatives, five residents and two representatives from the city’s educational community, the task force is to present to the council a list of recommended and prioritized projects, funding sources and an implementation plan by year’s end.

“It was important that everyone realize these problems weren’t going away — that the city needs additional revenues to address them,” Dollar said.

We believe that the task force solution is a creative way to address this critical issue and will go a long way to strengthening important relationships between all contingencies — business, residents and government — in the city of Bothell.

Deborah Knutson is president of the Snohomish County Economic Development Council. She can be reached at 425-743-4567 or by e-mail to dknutson@snoedc.org.

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