Island County property tax increase on August ballot
By JEREMIAH O’HAGAN Staff Reporter
Island County commissioners agreed last Tuesday to place a proposed property tax increase on the ballot for August’s primary election.
“We need to ask voters for direction and let them decide the fate of their local government,” said Commissioner John Dean.
The rate increase is an attempt to stave off an estimated $1.2 million shortfall next year, which would lead to cash flow issues by 2012 and a depleted contingency fund by 2014.
After discussing several options, the commissioners settled on a rate increase of $0.16 per $1,000 of assessed value. This would generate about $2 million in 2011 for the current expense fund, while costing homeowners $40 a year for a $250,000 home.
Commissioner Helen Price Johnson said the proposition would also allow a 1 percent increase each year for the next four years, or a percentage increase based on the Consumer Price Index for the Seattle-Tacoma- Bremerton area, whichever is greater.
While not enough money to bring back the staffing and programs that have been cut since 2008, it is theoretically enough to at least hold steady and, hopefully, slowly replenish some of the county’s reserves.
The commissioners acknowledged that this request is “neither comfortable nor popular,” but said that, frankly, they are at a loss as to what else can be done. Island County government has cut $4.2 million from its budget since 2008. This includes laying off more than 50 employees and reducing the hours that offices are open to the public.
Meanwhile, Island County has continued to enjoy the lowest property tax rate of the state’s 39 counties, at $0.51. It is one of only five counties whose property tax rates are below $1.00.
Instead of property taxes, Dean said, Island County has relied for decades on revenue from new construction, which has bottomed out.
Now, Dean said, “we are about to hit a financial wall.”
“Voters will need to decide whether keeping us at the bottom (of the property tax ranking) is worth putting our county’s infrastructure, public safety and other essential services there, too,” he added.
