County road fund tax hike okayed

Property owners will pay more next year to keep the county budget in balance and speed up the pace of maintaining and improving public roads and transportation facilities.

In a series of split decisions, the County Commission last week approved a pair of property tax increases that will add $400,000 to the general fund and $946,000 in new revenue to the Road Fund in 2005.

The tax hike, a total of 23 cents per $1,000 of assessed value, takes advantage of the untapped revenue remaining in the road levy. Roughly $1.3 million of so-called “banked” dollars, or unused levy capacity, was available because the full road levy has not been imposed in the past.

Though the increase comes solely from the road levy, six cents will be shifted to the general fund, known also as Current Expense, and the remaining 17 cents will go to roads. The owner of a $250,000 home will pay about $70 more next year as a result of the tax hike, according to estimates made by the Assessor’s office.

Commissioner Darcie Nielsen, who supported the increase for roads, objected to using $400,000 of potential road revenue to pay for programs financed by the general fund. For the second year in a row she voted against the budget.

Nielsen said she was willing to use about half that amount to soften cuts proposed to the Sheriff’s department, Juvenile Court, Central Services, permitting and planning. But, she said, balancing the budget with revenue that should go to roads only postpones changes that need to be made in the way government operates.

“We can’t continue to rob Peter to pay Paul,” Nielsen said. “I’ve heard from a lot of citizens and they think the county needs to do this, they think it’s time.”

The decision to raise taxes is a departure from a tentative agreement four weeks ago. Commissioners had slashed $608,000 in general fund expenses as part of the proposed budget which was unanimously endorsed Oct. 26.

At the Nov. 16 budget hearing, commissioners were confronted by several elected officials whose departments depend on general fund revenue, and were slated for cuts. Assessor Paul Dossett said it would be “irresponsible” to dismiss the revenue shift and impose cuts that cripple services. Sheriff Bill Cumming added that the $90,000 cut proposed for the Sheriff’s department would “compromise public safety”. Auditor Si Stephens said the cuts will create a “death spiral” as fewer staff handle an increasing workload and revenue suffers as a result. Stephens said it’s “totally unreasonable” to follow through with the package of cuts given the burden of implementing new accounting and permitting software that’s slated to come on-line next year.

“How do you implement new systems when taking $100,000 away from departments that will be working Saturdays and weekends to get the job done?” he asked. “They need the tools to get that job done.” The three were asking that $500,000 be shifted to the general fund.

Commissioners John Evans and Rhea Miller approved the budget. Miller initially voted against the 17-cent share for the Road Fund because, at the time, Evans had yet to agree on the shift to the general fund. The budget is scheduled for final approval Dec. 6.

MIller said the public cares far more about services like planning and permitting, law and justice, and public health than it does about roads. The new accounting and permitting software is expected to reduce expenses, but imposing the full array of cuts jeopardizes the ability to bring those systems on-line, she said.

“If we make these changes, we’re going to have huge relief in staffing,” Miller said on behalf of the commission that takes office in January. “Allow us to make that transition.”

Still, Evans said a $400,000 shift offers only temporary relief largely because the county’s wage and salary structure is no longer sustainable. Every year payroll increases and inflation take an additional toll of about $450,000, he noted, reluctantly agreeing to support the shift.

“I know the board coming in will be faced with the same problem and they’ll need to make staff reductions because what we’re doing is not sustainable,” Evans said.

Evans said property owners have benefitted for the past 10 years because the road levy was unrealistically low. He said the transportation infrastructure will begin to crumble without an infusion of funds. The cost of replacing roads is far greater than the price to maintain them, and a huge backlog of deferred maintenance needs to be addressed, he noted.

“It’s time we that we join other counties with a road levy that’s a little more realistic,” Evans said.

The Washington State Constitution allows commissioners to shift "some" of the Road Fund to the general fund, Dossett explained. The shift cannot push the tax rate above $2.475 per $1,000 of assessed value. With the shift, the general fund tax rate will be 77 cents per $1,000 next year. The statute also states that the combined tax rate of the Road and Current levies cannot exceed $4.05 per $1,000 of assessed value. "We're miles and miles away from that figure," Dossett noted.

Comment on this story.

COMMENTING RULES: We encourage an open exchange of ideas in our online community, but we ask you to follow our guidelines for respecting community standards. In a nutshell, don't say anything you wouldn't want your mother to read.