“No new property taxes” was the refrain of the night on Monday as the Issaquah City Council voted unanimously to turn down a 1 percent property tax increase recommended in the 2009 proposed budget.

The meeting marked the first public hearing regarding the proposed budget, and focused on property taxes and revenue sources.

Deputy Finance Director Trisha Draycott presented the council with a breakdown of where 2009 property taxes will go, introduced two new taxes – King County flood levy and the state ferry levy – and discussed the proposal for a 1 percent increase.

The council routinely raises property taxes by 1 percent each year.

The increase would have amounted to $62,265 a year, and was slated for the Debt Service Fund, in order to help pay down city debts.

Draycott emphasized the importance of accepting the tax, stating that the city would lose that amount of money every year if it wasn’t approved, and in 10 years it could amount to a loss of $620,000.

“If it doesn’t go through, it’s gone forever,” Draycott said. “You’ll never be able to recover it.”

Councilmembers, however, didn’t think that was a strong enough reason to increase taxes. Council President Maureen McCarry said she was worried about the message increased taxes would send to residents, and felt there were other avenues to explore.

“While I appreciate the idea of reducing debt, I think we can do it in the old-fashioned way of not spending,” she said. “I understand the city will lose money, but I think right now, the citizens are losing money with every payment they make.”

Councilmember Joshua Schaer agreed, stating that $62,265 would “barely scratch the surface” of Issaquah’s debt, which amounts to more than $30 million. He also pointed out that the council has recently raised water rates and supports Proposition 1, which would increase sales tax. He also mentioned that Tuesday’s ballot already carried a property tax bond measure for a new fire station.

“In this economy, I’m done taxing people until we can make some changes in the way we spend our money,” he said.

Even councilmembers such as David Kappler, who said he has always supported the tax increase in the past, declined to approve it this year.

The City Council will continue to hold budget workshops, and the final public hearing will be at the Dec. 1 City Council meeting. The 2009 budget is expected to be adopted at the Dec. 15 City Council meeting.

To view the proposed budget or, for a complete list of council meetings, visit www.ci.issaquah.wednet.edu.

Katie Regan can be reached at kregan@issaquahreporter.com or 391-0363, ext. 5052.