Wednesday, September 18, 2013 • The Islands’ Sounder
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Quarterly review OPALCO to expand energy efficiency from auditor by F. MILENE HENLEY
San Juan County Auditor
I work for the government, which gives me a warped view of the world. I forget that not everyone knows obscure stuff like how levies work, or that sales tax is comprised of lots of little parts. Since sales tax is always a big part of my quarterly reports, I thought I’d explain a little more about local sales tax. The “base” rate for sales tax in Washington is 6.5 percent. That’s the state amount, and all of it goes to the state – unless they choose to give it back, as in two cases described below. Counties and cities are allowed to add an additional 1 percent “local option” tax. Only one county – Klickitat – has not adopted the full 1 percent allowed. So effectively, the base rate in Washington is 7.5 percent. The current rate in San Juan County is 8.1 percent (King County is 9.5 percent). So how did we get from 7.5 to 8.1 percent? Counties are allowed to add other components to sales tax, some by public vote, some by council action. Unlike the 1 percent local option tax, all are restricted to specific uses. The first two addons were adopted by the old Board of County Commissioners in 1995 and 1996: 0.1 percent for criminal justice purposes, and 0.1 percent for jail and juvenile detention purposes. Those brought our county sales tax rate to 7.7 percent, where it stayed until 2008. In December of 2008 Council adopted the 0.1 percent mental health sales tax, which may be used only for mental health and substance abuse programs. Then in November of 2012, the public voted to add a 0.3 percent public safety tax. Forty percent of the public safety tax must be shared among the cities and towns in the county; in our case, that means that the whole forty percent all goes to the Town of Friday Harbor. Both the county and the town are required to use at least one-third of the proceeds to provide criminal justice or fire protection services. That gets us to 8.1 percent but there’s more. In addition to the 8.1 percent sales tax, guests of our local lodging establishments pay
another 2 percent “lodging tax.” Actually, the total lodging tax is 4 percent. The first 2 percent of it is distributed to the County out of the State’s 6.5 percent. The second 2 percent is added to the 8.1 percent so lodging guests pay a total of 10.1 percent sales tax on their accommodations. Advised by a local Lodging Tax Advisory Committee, the council uses all of the lodging tax revenues to support tourism or to promote San Juan County as a travel destination. Another, sort of “invisible,” sales tax revenue is the .09 percent rural sales and use tax, which is distributed to small counties of low population density. Nobody “pays” this tax; rather, like the first 2 percent lodging tax, it is distributed out of the state’s 6.5 percent. The money must be used on capital projects belonging to public entities, and must encourage economic development. With all that at stake, you can see why I worry about sales tax revenue. So buy local. We need the money.
Almanac TEMPERATURES, RAINFALL ORCAS High Low Precip Sept. 9 61 52 — Sept. 10 68 49 — Sept. 11 71 53 — Sept. 12 62 54 — Sept. 13 62 56 — Sept. 14 69 52 — Sept. 15 62 51 .18 Precip in September: .75” Precip in 2013: 16.88” Reported by John Willis, Olga
Sept. 18 Sept. 19 Sept. 20 Sept. 21 Sept. 22 Sept. 23 Sept. 24
A new policy approved at the OPALCO Board’s July 18 meeting opens the door for nonprofit organizations to collaborate with the co-op to create new opportunities for energy efficiency, conservation and renewable energy production in San Juan County. OPALCO’s current Energy Efficiency and Conservation program, funded by the Bonneville Power Administration, provides benefits to members in the way of rebates and incentives, but it is limited by a constraint that the member home or business must be heated with electricity. Policy 28 will serve to accelerate energy efficiency and conservation measures
by inviting qualified participating nonprofits to seek grant funding for programs, incentives and education opportunities without that constraint. “Our goal is to better serve our members and reduce our co-op energy load by making best use of the resources available in the region,” said OPALCO General Manager Randy Cornelius. “We have a real talent pool in San Juan County: smart, creative and experienced people who – we hope – will help us to develop new ideas and funding avenues for education, outreach and greater energy efficiency.” OPALCO’s Member Owned Renewable Energy
Program includes 113 local renewable generators, interconnected to OPALCO’s distribution system. Policy 28 will also open the door for more local renewable power through community solar and other grant-funded activities and incentives. OPALCO is currently investigating whether any of their properties would be an appropriate site for a community solar installation. If so, a qualified nonprofit could install, maintain and manage a solar generator with many community members sharing in the investment – and energy credits produced. To qualify, organizations must be an independent nonprofit entity
under Washington State Law, be self-funding and governed by a board and advisors drawn from all of the ferry-served islands in OPALCO’s service area. OPALCO will contract with qualified nonprofits through a Memorandum of Understanding that establishes the scope of work and standards. Policy 28 and the MOU are available online at www. opalco.com. Interested nonprofits can also contact Bev Madan (bmadan@opalco. com) for more information.
IN BUSINESS The Islands’ Sounder celebrates the contributions business women in the San Juan Islands have made. This very popular section is an effective way to introduce (or re-introduce) you and your business to new and existing customers.
Published on October 23, 2013.
Ad Sales Deadline is October 3, 2013 Call Colleen to book your ad! 376-4500
PET OF THE WEEK Meowee!! I get to be Islanders Bank’s favorite kitty this week. My name’s Pistol, and I’m a fun-loving, playful kitten, ready to climb on your shoes and play with your deposit slip. All the other kittens – 14, can you believe it? – can be seen at the Orcas Animal Shelter any day from 2 to 5 p.m. We’re all online, too: orcaspets.org.
SUNRISE, SUNSET Sunrise Sunset 6:54 a.m. 7:16 p.m. 6:56 a.m. 7:14 p.m. 6:57 a.m. 7:12 p.m. 6:58 a.m. 7:10 p.m. 7:00 a.m. 7:08 p.m. 7:01 a.m. 7:06 p.m. 7:03 a.m. 7:04 p.m.
T for hank you you r in cred Orcas ible Islan sup d por t!
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