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02/01/2006: "Impact Fees? New Taxes? Maybe."

(Joanruth Baumann of Public Works -Si Stephens in background)

For all of the complaining by both the Left and the Right about the GMA (Growth Management Act), there is at least the demand it makes that government plan ahead for the future, and to include in the plan a way of paying for the services and facilities that government is required to provide, and also for any additional services and facilities they choose to offer. On Tuesday a workshop was held by the SJ County Council on a Capital Facilities Planning Workshop. Joanruth Baumann of Public Works gave a presentation that addressed the money side of providing capital facilities.

The presentation reviewed where the County has been, where it is, and some directions it could go, to raise the money necessary to fund current and future growth for a six year period. For the purposes of the workshop, the presentation listed three general areas the Council could look into as possible funding sources:

Increase Existing Rates
● General Levy
● Road Levy (diverted Toad Levy)
● Tipping Fees and Utility rates, etc.

Borrow
● Existing Debt Service Obligations
● Capacity for Additional Debt
● Pay-As-You-Go vs. Debt

Consider New Revenue Sources
● Real Estate Excise Tax, 2nd ¼%
● Impact Fees
● SEPA Mitigation Fees
● Utility Fees



In simple terms, the two general choices given would target new development that are identified as increasing the costs of providing services, or the Council could simply increasing the fees and/or taxes of everyone who uses services. The projected costs of the Real Estate ¼% to the owner of a home assessed at $450,000 would be $1,100.00, and would -best guess- add $750,000 a year to the County coffers.

The presentation moved quickly over the "borrow" option, in that the Council, like the voters, is all too familiar with the concept. The section that got the most attention, and the most questions, was the Impact Fee option, which San Juan County had tried some years ago, but had failed to do their homework to justify the fees, and the fees were struck down by the State Supreme Court. It was readily apparent that Public Works was fully aware that the County cannot simply decide to impose a new fee on development without proving the justification and the need, and also pointed out the fees can only be used for that portion of a capital improvement expense that is the direct result of new development.

Toward the end of the presentation, Councilman Ranker said that he would like "this Council" to be the group that finally addresses the need for improved law and justice administrative and court room space; pointing out that it has been a subject of discussion for years, and nothing has been done to address it. Jon Shannon, Public Works Director, informed the Council that a consultant would be hired to do another study of the problem, and Superior Court Clerk Mary Jean Cahail told the Council that a partnership with the Town of Friday Harbor was still possible. Previous Story

Councilman Myhr said that he believed we live in a beautiful county, and yet we have neglected our buildings, and he would like to see that change. He also said that the County Council should look at a possible combination of funding sources, and that bonding should be a part of that combination. Lichter said he concurred, and Ranker also agreed. It was also decided that the Council would meet again in the near future for another workshop to further explore possible funding sources.