HomeMy WebLinkAbout022425 email - PUBLIC COMMENT_ PFD - debt_ both councilmatic and voter-approvedALERT: BE CAUTIOUS This email originated outside the organization. Do not open attachments or click on links if you are not expecting them.
Commissioners,
During the crowded Public Comment period this morning (Feb 24), I tried to bring to your attention on of my ongoing concerns about public agencies and their powers to tax. To elaborate:
A Public Facilities District (PFD) can incur public debt and seek regressive sales taxes, property taxes and lodging taxes. Please refer to these parts of the Revised Code of Washington
State.
RCW 82.14.048 <http://app.leg.wa.gov/RCW/default.aspx?cite=82.14.048> Sales and use taxes for public facilities districts
RCW 36.100.040 <http://app.leg.wa.gov/RCW/default.aspx?cite=36.100.040> Lodging tax authorized
RCW 36.100.050 <http://app.leg.wa.gov/RCW/default.aspx?cite=36.100.050> Ad valorem property tax
Below is the chapter of the RCW that was the focus of my comments this morning:
RCW 36.100.060 <http://app.leg.wa.gov/RCW/default.aspx?cite=36.100.060>
(1) To carry out the purpose of this chapter, a public facilities district may issue general obligation bonds, not to exceed an amount, together with any outstanding nonvoter approved
general obligation indebtedness, equal to one-half of one percent of the value of taxable property within the district, as the term "value of taxable property" is defined in RCW 39.36.015
<http://app.leg.wa.gov/RCW/default.aspx?cite=39.36.015> . A public facilities district additionally may issue general obligation bonds for capital purposes only, together with any outstanding
general obligation indebtedness, not to exceed an amount equal to one and one-fourth percent of the value of the taxable property within the district, as the term "value of taxable
property" is defined in RCW 39.36.015 <http://app.leg.wa.gov/RCW/default.aspx?cite=39.36.015> , when authorized by the voters of the public facilities district pursuant to Article VIII,
section 6 of the state Constitution, and to provide for the retirement thereof by excess property tax levies as provided in this chapter.
The current taxable value of the county is about $9.8 billion ( $9,816,120,776 per https://www.co.jefferson.wa.us/DocumentCenter/View/20750/Value-Levy--Data-for-Tax-Year-2025 <https://www.co.jefferso
n.wa.us/DocumentCenter/View/20750/Value-Levy--Data-for-Tax-Year-2025> )
So, as I read that RCW, a county-wide PFD can issue councilmatic bonds for up $49 million (the 0.5% part) to fund both capital and operating expenses.
In addition, a PFD can ask voters to approve issuance of additional bonds for capital purposes, which would increase that debt to a total of $122.7 million (the 1.25% part).
I hope the above helps explain one of the many reasons that I am so concerned about the formation of a new taxing district.
Tom Thiersch