Council Expected to Propose Continuation of Tax Levy Authorization

— from San Juan County Communications —

During its July 14 meeting, the San Juan County Council will discuss placing a property tax measure on the November election ballot. If approved by voters, the issue would continue the County’s property tax at a level that guarantees funding for a number of popular programs. The Council has tentatively scheduled a hearing to take public comment and conduct final deliberations on the ballot proposal on Thursday, July 31.

The current County property tax level was established in 2009 during an economic downturn. State law limits property tax increases to 1% per year, plus an additional amount for new construction. Other revenues had been hit hard by the recession. Caught between rising costs and shrinking revenues, the County had been forced to reduce staff, mandate furlough days and shorten operating hours. All non-mandated services were on the chopping block. The 2009 ballot measure guaranteed funding for several popular programs that faced devastating cuts, including public health, parks, emergency management, senior services, and the WSU Extension Service’s master gardeners and 4-H youth programs.

The 2009 measure passed by a wide margin. “Thanks largely to the 2009 lid lift,” said County Manager Mike Thomas, “the County’s budget is not in crisis now. But increases in the cost of everything from fuel to building maintenance to employee health insurance have kept our budget tight.”

A provision of the 2009 measure stated that the levy would revert to its previously authorized level in 2016 if not renewed by the voters before then. If the 2009 levy authorization were to lapse, the County’s property tax revenue would drop by more than $1 million dollars. “A loss of that magnitude would force us to make severe budget cuts,” said County Auditor and budget officer Milene Henley. “And non-mandated programs, including the ones saved by the voters in 2009, would inevitably be hit hardest.”

“We’ve worked hard to find efficiencies and keep a tight leash on the cost of providing essential services,” said Council Chair Rick Hughes. “But we couldn’t take a million-dollar drop in property tax revenue without serious reductions in the type and quality of services we provide.”

To maintain the current level of revenue in future years, the property tax levy would be set approximately 19 cents per thousand dollars of value above what the rate would be without the levy lid lift. Currently, San Juan County has the lowest average property tax levy in the state by a wide margin. In 2013, the average tax rate on property in San Juan County was $6.76 per $1,000 in assessed value; that was $1.94 dollars (28%) below the next lowest average county’s rate, and $5.72 (84%) below the average property tax rate statewide. (Source: Washington Department of Revenue)

If the Council decides on Tuesday, July 14, to keep moving toward a November vote on the property tax, copies of a draft ballot measure will be available online in time for citizens to study it carefully before the July 31 public hearing.