City of Clyde Hill

The Budget Process typically begins in August of each year culminating with adoption of a budget for the following year at the December City Council meeting. Public meetings are held during this process to review the City’s financial condition, set priorities and allocate resources to meet the needs of the City. To add private business experience and/or a homeowner’s perspective throughout this process, Clyde Hill has instituted a Budget Advisory Committee made up of City residents. The Budget Advisory Committee assists the Mayor and City Council in formulating a budget that is designed to best suit the needs of the community. All residents of Clyde Hill are welcome at budget study sessions or regularly scheduled City Council meetings to offer their perspectives in formulating the next year’s budget. Our City newsletter and web site are the best ways to be made aware of upcoming budget process events.

Quick summary information about the current budget can be obtained through the following links:

Currently, due to the robust housing development activities in Clyde Hill, operating revenues have been able to keep pace with operating expenses. Our financial projections done at the start of each budget process show this financial equilibrium could be in jeopardy if housing development were to cool off in Clyde Hill in the future. Each budget process has its own unique challenges and opportunities and is best summarized in the Mayor's Budget Message listed above.

Annually the Washington State Auditor’s Office independently audits the City of Clyde Hill. As evidence of the City’s accountability and strong fiscal practices, the State Auditor’s Office in December, 2001 presented a “recognition award” to the City for eleven continuous audits with no findings (i.e. significant problems). Our latest published audit reports keep the "no findings" streak alive and can be viewed at the following links:

Each month, the City’s Finance Manager “closes the books” and prepares financial statements for review by the City Administrator, Mayor, Council members and any interested party. Cash and investments are reconciled to the respective Bank Statements and all accounts are reviewed for proper classification and completeness. A “highlights” memorandum from the Finance Manager is attached to the financial statements for distribution pointing out any significant variances with our annual budget or any noteworthy financial events occurring in the past month. This information is listed below. City staff is available for questions at any time.

Clyde Hill property owners will pay over $9 million in total property taxes in 2007. The City will receive less than 9% of that amount to pay for local government services (i.e. police, fire, streets, storm sewers, etc.). Many residents have the impression that most of their property tax goes to pay for City services…This is not true. The property tax is probably the most widely misunderstood elements of the City’s finances. In response to the confusion, a “special edition” of the City’s Newsletter was developed. This information can be viewed at:

Specific and historical information related to the City’s property tax can be viewed at:

The City of Clyde Hill receives less than 1% (.85%) of the 9.0% sales tax paid for eligible goods and services purchased in Clyde Hill. By far the most important sales tax revenue source for the City comes from contractors building new homes and major remodel projects. Other services include automobile leasing, landscaping, sales at the gas station, Tully’s and the schools.

To avoid errors, please let your car dealership or service provider know that you live in the City of Clyde Hill (not Bellevue) and your sales tax code is 1708.

The following table shows how your sales tax is distributed for common goods and services (construction & remodeling activity, landscaping, auto leases, etc.) purchased in Clyde Hill:

*Jurisdiction*	*Rate*
State of Washington	6.50%
King County/METRO	0.80%
King County Criminal Justice Levy	0.10%
City of Clyde Hill (0.15% remitted to King County)	1.00%
Regional Transit Authority (Sound Transit)	0.40%
Expand Metro Bus Service (Effective 04/01/07)	0.10%
King County Mental Health Treatment Services (Effective 04/01/08)	0.10%
Total Sales Tax Rate	9.00%

Utility Taxes and Franchise Fees

Because the City funds only 28% of its operations from property taxes, it relies heavily on utility taxes and franchise fees. These taxes and fees are imposed on the companies that have their facilities located in or use the City’s rights-of-way. The companies are required to pay these fees in order to do business in the community. It is up to them whether or not they pass those costs on to their customers.

Not all utilities are taxed the same. The State placed caps on a few of the utility tax rates. Clyde Hill utilities are taxed in the following way:

*Company & Service*	*Utility Tax Rate*	*Franchise Fee Rate*
PSE -Electricity	6%	0%
PSE - Gas	6%	0%
Qwest – Phone (local access)	4%	0%
Rabanco - Garbage	4%	5.5%
Comcast – Cable TV	4%	5%
Many – Long Distance	0%	0%
Many – Cellular Phone	6%	0%
Bellevue - Water	0%	8%
Bellevue – Sewer	0%	8%

City Services Provided

Your tax dollars that eventually make their way through the various distribution formulas to the City of Clyde Hill are used to provide the following tangible benefits to homeowners:

Police Services (24 X 7 fully equipped & trained 10 member Police Department including Civil Service Commission, prosecutor, dispatch, muni court, indigent defense, vehicles & jail)
Fire Department Services including Emergency Medical Services (24 X 7 fully equipped & trained service provided through contract by the Bellevue Fire Department)
Street Operations (includes the installation and maintenance of signs, signals, lighting, street cleaning, right-of-way plant maintenance, on-call snow plowing & ice control, 24X7 disaster response (i.e. December 2006 Windstorm)
Roadway Improvements (includes road overlays, patches, street striping, crack sealing, curb painting, bush trimming)
Storm Drainage (includes system cleaning, catch basin & storm drain repairs)
Pathways & City Entrances (includes Points Loop Trail, path along 84^th Ave, sidewalk construction & repair, mowing, trimming, weeding, maintaining the attractive city entrance areas)
Building Code Services (includes one-on-one code information, plan reviews, building permits, other permits, inspections, Planning Commission, Board of Adjustment, view mitigation assistance, code enforcement, no cost landscape and arbor advice)
Park Facilities (includes the 26^th St View Park, the City Park & Tennis Courts, 24^th St. circle parking lot & picnic area, & arbor day trees with informative plaques throughout the city)
General Gov’t (includes Mayor & City Council, election services, communications, finance, audit, legal, insurance, emergency preparedness, passport services, pet licenses, notary, growth management act, urban forestry program, LID administration, wireless communication facilities administration)
Regional Responsibilities (includes affordable housing regional contribution, endangered species act contribution, air quality contribution, Puget Sound Regional Council, Suburban Cities Association, Association of Washington Cities, Eastside Transportation Project Planning).