EVERETT - Snohomish County would begin the new millennium with the lowest
property-tax-rate increase in at least 26 years under County Executive Bob Drewel's
proposed $587.1 million budget for 2000.
A healthy economy, a robust housing-construction market and unusually brisk
new-vehicle sales are pumping the county's tax revenues, said Dan Clements,
county finance director.
That would allow the county to restrict next year's increase in property-tax
collections to 1.42 percent while boosting spending by 13.2 percent.
But there's a big potential hitch. If state voters approve the tax-slashing
Initiative 695 on next month's ballot, the Snohomish County Council might
have to approve a larger property-tax increase to make up for lost state revenues,
county officials said.
I-695, which would reduce license-tab fees to $30 per vehicle and require
public votes on all tax and fee increases, could cast a long financial shadow
in Snohomish County. Public-health, mass-transit, roads and criminal-justice
programs are funded with tab-tax revenues.
Several aspects of Drewel's generally good-news budget, presented yesterday
to an auditorium full of county officials and employees, hinged on the state
initiative's fate.
Drewel said his proposed $2.4 million "quality communities" program would
be the first victim if I-695 passed. That new program, announced during the
budget speech, would help build capital projects such as sidewalks and trails
in rapidly growing neighborhoods.
If I-695 passes, however, Drewel wants to move that $2.4 million into a contingency
fund to deal with the initiative's repercussions.
In particular, the county faces losing about $2.4 million in state criminal-justice
funds and $600,000 in local-road funds raised through the tab tax. Nobody knows
whether the Legislature would find alternative sources of criminal-justice funding
for local governments if the initiative passes.
Criminal-justice programs - including the courts, jail, juvenile programs
and the Sheriff's Office - account for 64 percent of Drewel's proposed $151.6
million general-fund budget, which pays for day-to-day county operations.
Drewel has proposed adding five deputies to the sheriff's 220-member force,
plus three other sheriff's staff members next year. But because of I-695 uncertainties,
he is recommending April hire dates. If I-695 passed, then the quality-communities-program
funding probably would be used to pay for the new sheriff's employees, he said.
When Drewel presented the 1999 budget a year ago, the county faced gloomy
economic forecasts due to international financial forces and Boeing's announced
decision to lay off thousands of workers. That budget was built upon conservative
tax-revenue projections that turned out to be unfounded, he said yesterday.
"For the first time we have withstood a major reduction in Boeing employment
without a local recession," Drewel said. "Economic activity driven by other
local business and industries has resulted in strong growth for other sectors
of our local economy."
As a result, the county has a $9.5 million 1999 surplus that's being folded
into the 2000 budget. Drewel proposed setting aside $8.4 million toward a new
county jail or regional justice center, which could cost between $60 million
and $104 million depending on its design and uses.
Sheriff Rick Bart, who in past years has wrestled with Drewel and the County
Council over his need for more deputies, was in an accepting mood yesterday.
Drewel and the County Council already have added 35 deputies to his force since
1995.
"I'm never satisfied, but we're whittling away at it," said Bart, adding that
he's pleased with Drewel's plan to start saving money for a new jail.
County Councilman Gary Nelson, R-Edmonds, who last year voted against the
budget because it contained a 6 percent property-tax increase, was laughing
with pleasure after Drewel's speech.
"I'm in shock," Nelson said, about the minimal tax increase contained in the
proposed budget.
The budget does, however, contain a proposed 6 percent road-levy increase,
which is a property tax charged only in unincorporated areas of the county.
Other elements of Drewel's budget include:
-- $50 million for road improvements, including Airport Road car-pool lanes,
flood repairs for Lowell-Snohomish River Road and widenings of 35th Avenue Southwest,
112th Street Southwest, 164th Street Southwest and 128th Street.
-- $29 million for parks improvements, including nearly $17 million for new
athletic fields.
-- At least $8.7 million for salmon-habitat improvement projects, to deal
with the listing of chinook as threatened under the federal Endangered Species
Act. More money might be dedicated to the effort after the National Marine Fisheries
Service issues its draft rules for salmon protection.
-- $1.3 million in high-technology investments in computer and telephone systems.
-- For each property-tax dollar collected, about 60 cents would go to local
school districts, 13 cents to cities and towns, 11 cents to the county's general
fund, 6 cents to county roads, 5 cents to fire districts and 4 cents to ports
and hospitals.
The proposed 1.42 percent increase in property taxes is projected to raise
an additional $732,000 in 2000, said Deputy Executive Joni Earl. If the county
imposed a 6 percent increase, the legal maximum, an additional $2.3 million
could be raised, she said.
Clements, the finance director, said 1.42 percent would be the lowest property-tax
increase since at least 1974. Clements said he couldn't locate records of the
county's tax increases before that date.
The council is scheduled to adopt the 2000 budget by the end of November.
Diane Brooks' phone-message number is 425-745-7802.
Budget forums Snohomish County Executive Bob Drewel and the County Council
will hold three public forums to acquaint residents with the proposed 2000 budget
and to solicit comments. All three forums will include a 6:30-7:30 p.m. open
house, a 7:30-8 p.m. presentation by Drewel and his staff, and an 8-9 p.m. question-and-answer
period. The forums will be held on:
Oct. 20 at Edmonds Community College, Triton Union, 20000 68th Ave. W., Lynnwood.
Oct. 25 at Snohomish High School, Performing Arts Center, 1316 Fifth St., Snohomish.
Oct. 26 at the Stillaguamish Senior Center, 18308 Smokey Point Blvd., Arlington.
