News - Local News

POSTED: Sunday, Nov. 08, 2009

County Council to discuss tax shifts, budget reductions

Whether to shift road fund property tax money or tax money from agricultural land preservation funds to bolster the county's general fund is up for debate Tuesday, Nov. 10.

Whatcom County Council members are scheduled to debate and vote on a proposed road fund property tax levy shift to the general fund, but council members have raised concerns that such a change would reduce the burden on rural property owners at the expense of property owners in the seven cities.

Under the proposal that was offered up by County Executive Pete Kremen's administration, the county would reduce the road fund's taxing capacity by $1.75 million and then boost the general fund's levy by the same amount.

The administration also said the council could instead just transfer that amount of money over or cut the general fund's expenditures by $1.6 million.

The measures are part of a strategy by the county to help avert a projected general fund deficit of $3.4 million in 2010. The general fund pays for the majority of services the public sees, such as law enforcement.

County Councilman Carl Weimer and others have argued that the shift would be unfair to city taxpayers, however, because they don't pay road fund property taxes. By reducing the taxing capacity of that fund and increasing the general fund levy - which all property owners pay toward - rural residents would see a tax decrease while city dwellers would see an increase.

He's advocated for simply transferring road fund money into the general fund, which wouldn't affect the tax rate. The council also is scheduled Tuesday to vote on several property tax levy resolutions, including for the general fund and road fund, that would keep tax rates the same next year, meaning no increases in property tax rates.

Meanwhile, County Councilman Ward Nelson wants the council to ignore the road fund altogether and instead consider the conservation futures fund, which collects money to purchase land for agricultural preservation. All taxpayers pay into that fund.

Nelson wants the council to reduce the conservation futures fund and then increase the general fund by the same amount. He argues that the conservation fund has $3 million in reserves, and the county spends perhaps just a little more than $1 million a year for land preservation. That means potentially two years of reserves could be tapped now to help bolster the general fund.

At a previous meeting, however, Councilwoman Laurie Caskey-Schreiber argued against such a proposal, saying the money should remain for more preservation, as the council recently passed a resolution calling for a goal of preserving 100,000 acres for agricultural use. It remains to be seen if Nelson or Weimer will find support among the council majority for their suggestions.

IF YOU GO

What: County Council members will discuss a property tax shift from the county's road fund to the general fund and other options.

When: 7 p.m. Tuesday, Nov. 10.

Where: Council chambers, Whatcom County Courthouse, 311 Grand Ave.

Have your say: Contact council members at council@co.whatcom.wa.us or call 676-6690.