At the same time, our revenues are being more and more constrained by a number of factors. Growth management has been effective at directing growth into urban areas to the point that a wave of incorporations and annexations has swept the county. This year alone, Maple Valley, Covington and Kenmore have incorporated, and voters on the Sammamish Plateau face a decision on incorporation in November. This trend has removed thousands of residents, large retail districts, and millions of dollars in sales tax from the unincorporated King County tax base. This trend is only natural.
People living in urban areas want urban services and amenities.
But the result is a diminishing sales tax pool for the County. Fortunately, this has been partially offset over the past year by real estate transaction fees generated from the booming real estate market. But, along with other factors such as the anticipated slowdown in regional economic growth, it has resulted in less optimistic revenue forecast for 1999. Doing Our New Job with Tighter Revenue Given the realities of increased demand for services and tighter expected revenues, I want to give credit to County department heads and staff and other elected officials for working hard to set priorities and make cuts where necessary. This means the property tax, which partially supports the current expense fund, is proposed at less than the 106 percent lid established by state law.