County officials consideringtaxing options

With Wahkiakum County facing a continuing revenue crisis through 2009, county officials are looking for ways to increase revenues, including increasing taxes.

Options range from imposing an extra .5 percent sales tax, doubling the current 1 percent hotel use tax, and asking voters to authorize an increase in the property tax or to approve new taxes to support parks and recreation or the Wahkiakum Family Practice Clinic.

Commissioner Blair Brady and Assessor Sulema Zerr will meet this week to itemize the possibilities and estimate how much revenue the measures would generate.

No one showed enthusiasm for raising taxes when commissioners and county department heads met Tuesday as the Treasurer’s Finance Committee.

Board Chair George Trott acknowledged that the board could implement some increases without going to the voters. For example, the board hasn’t increased the county property tax as much as it could in recent years because the county was making sufficient revenue off of timber sales and through state tax revenues. Now, those sources have tightened up, and the board could increase the property tax 1 percent to claim some of the capacity it hadn’t levied.

“It’s there, if you think the voters can afford it,” he said.

“You have to be careful,” Commissioner Dan Cothren commented. “No way I’m doubling anybody’s taxes.”

“I’m not looking at doubling anybody’s taxes, either,” Brady said.

It would be a strategic move laying the groundwork for a county request to the legislature for financial assistance. The county will have to try all options, including taxes, before going to the legislature, he said. Even if voters reject the measure, the county would be able to say it had tried to get the tax revenue.

And if voters were to approve an increase in levies, the bulk of the revenue wouldn’t arrive until 2010.

“Any small increase shows we have used the tools they’ve given us.”

The county traditionally hasn’t relied on property taxes for the bulk of its revenues because the property tax base is low.

“We’re unique in the State of Washington,” said Treasurer Paula Holloway. “We have no property tax base. That’s what is keeping other counties afloat.

“And 60 percent of a person’s property tax goes to the state.”

The rest is divided between the county, small taxing districts and school districts.

Commissioners also urged department heads to look at whatever fees they could charge for services and consider implementing them.

Department heads are working on their budget proposals for 2009; those are due next week so that the auditor’s office can prepare the 2009 draft budget.

Commissioners have ordered a variety of cuts, including some manpower cuts that would cut at least three officers from the sheriff’s department and a half position from each of the other departments.

Those staff levels should be carried into the 2009 budgets, commissioners said.

They’ve also announced that the county won’t fund the Washington State University Cooperative Extension Program in 2009, but the commission said it is awaiting a proposal from WSU for a new level of services.

The board rejected a request from Prosecuting Attorney Dan Bigelow and Sheriff Dan Bardsley to use an estimated $56,363.67 in windfall traffic infraction revenue to fund positions in their departments.

“While the county has experienced an increase in traffic infraction income, this money will be needed to offset deficits we are experiencing in Current Expense,” Trott responded in a letter to Bigelow. “The board has set budget principles that do not allow the use of current expense revenue to offset the expenditure reductions each department has been asked to make.”

The board did approve changes to the fees charged by the Equipment Rental and Revolving Fund to save $20,000 or more over the next year. The fund assesses departments a depreciation fee for vehicles and equipment used in the County Road, Sheriff’s Department, Health and Human Services and Current Expense.

Public Works Director Pete Ringen presented data showing the fees could be lowered by lengthening the turnover time for the vehicles.

Duncan Cruikshank, interim chair of the county Health and Human Services Board, presented a letter proposing offsets to the 2009 cuts for Human Services.

The county could levy small increases in sales and use taxes that would be matched by state sources, possibly as much as $100,000, Cruikshank said.

“We appreciate this,” Trott said. “We’re looking for all the funding sources we can find.”