County to assume debt, sell $3.7 million in bonds

Long-term debt and the sale of bonds will pay for several public projects county commissioners believe are too important to postpone or discard.

County commissioners last week approved the sale of $3.7 million in bonds to fund two transportation projects, a new public works yard on San Juan Island, and upgrade outdated accounting and phone systems.

The decision was not unanimous. Commissioner John Evans voted against the $750,000 technology bond and the $1 million of revenue needed to fix the north end of Cattle Point Road. Three of the projects, including the $1.5 million purchase of the gravel pit in Friday Harbor, are on San Juan Island and will be financed by road funds and Public Works.

Despite grumbling about the cost of government, Commissioner Rhea Miller said the projects are necessary, overdue and sound investments. There’s no public barge landing on San Juan Island and the public works yard on Guard Street is decrepit and the bane of the neighborhood, she adds.

The public expects efficiency and improvements to the accounting and phone systems as well, she said. “As a commissioner, I feel the public wants us to be more efficient, they want us to get our financial statements in on time,” Miller said. “I’m willing to put my vote on the line.”

Monday’s approval of the bond sale set the stage for a public hearing on next year’s budget the following day. In a 2-1 vote, the commission gave preliminary nod to a $44 million revenue and spending plan, $12.6 million of which is earmarked for general fund expenses. Roughly 72 percent of that is payroll-related. It will be officially adopted Dec. 1.

Evans and Miller supported the budget. They also restored $77,700 that had earlier been projected to be cut, and aimed at the Assessor, Prosecuting Attorney and Health and Community Services. They felt the $45,000 reduction targeted for the assessor’s office could backfire by forcing a four-year cycle of assessments -- instead of three -- and create the possibility of earning less revenue from property taxes. An additional $17,000 in new fees from foreclosures was added to the revenue side of the balance sheet.

To slice expenses, Evans advocated reviewing the need -- case-by-case -- of jobs that become vacant after employees retire or resign. The compensation package of county employees is no longer sustainable, he said.

“We need to reduce the cost of government to stay within our limitations, and the biggest factor we have is labor,” he said.

As she did last year, Commissioner Darcie Nielsen voted against the financial plan. She also criticized her colleagues for abandoning the Price of Government blueprint of budgeting initiated six months ago, and for supporting a business-as-usual approach. As it stands, Nielsen said, little has been done to restructure services or programs, and the budget offers “serious problems down the road.”

“I have no confidence in this budget,” she said.

Approval of bonds and the budget comes two weeks after local voters overwhelming defeated a proposal to raise property taxes for county government. Although next year’s $44 million budget sets a record, Auditor Si Stephens said bonds, grants and outside revenue for E-911 services paint a false picture. For the general fund, it’s the smallest increase he’s seen in 20 years.

“If you take out E-911 and grants, this is the lowest change in expense I’ve ever seen,” Stephens said of the slight hike over last year in general fund expenses. “At .007 percent, it’s an increase of less than 1 percent in Current Expense.”

The bond will cover the following. Annual payments are estimated at 5 percent interest.

- $1.5 million for purchase of property at Jackson Beach owned by Friday Harbor Sand and Gravel, a subsidiary of Lafarge North America; annual payment of $143,332 for 15 years.

- $500,000 for property purchase for a public works yard on San Juan Island; annual payment of $47,700 for 15 years.

- $1 million for improvement of north section of Cattle Point Road; annual payment of $95,500 for 15 years. (Local dollars match $1 million state grant)

- $750,000 for improvement of accounting and phone systems; annual payment of $115,000 for eight years.

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