Okanogan Valley Gazette-Tribune, November 22, 2012

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OKANOGAN VALLEY

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Tonasket council approves 2% ad valorem hike Still faces budget crunch with sales tax initiative in limbo BY BRENT BAKER BBAKER@GAZETTE-TRIBUNE.COM

TONASKET - A divided Tonasket City Council approved a two percent hike in the city’s ad valorem tax at the Tuesday, Nov. 13, council meeting. In its debate on the issue, council members recognized that city residents were resistant to raising taxes -- the 0.1 percent sales tax hike proposal was narrowly trailing -- but tried to balance that against declining revenues and rising expenses that are creating a budget crunch. The city has not raised its ad valorem tax in three years. “We’re probably the only city in the county that has not done this three years in a row,” said Tonasket mayor Patrick Plumb. “I agree with the sentiment that this won’t solve our budgetary woes, but it would go a ways toward funding services that are important to the city, that are basic needs.” Each one percent of ad valorem tax increase would cost taxpayers $3.00 per $100,000 of property valuation. The two percent hike ($6.00 per $100,000) will bring in an additional $2,316. That will increase the city’s property tax receipts from $115,802 in 2012 to $118,118 next year. Plumb asked the council to summarize their feelings on the issue.

“You commented that we’re elected by the people that we see every day,” said council member Jean Ramsey. “I have to say that I stand with those that come up to me day after day and say, ‘Don’t raise my taxes.’” “If we’re going to do this I’d like to see a more gradual (process) rather than doing it all at once,” said council member Jill Vugteveen. “It’s not a big difference, but it is a difference.” “When we talked budgeting, I was thinking two percent,” said council member Scott Olson. “But when I saw the election returns, I thought, gosh, people are not voting for this, though it’s close. But I also see the numbers and see that it’s a way we get revenue. It’s been nice not doing it. But I realize if we collect the same amount of money, with property revenues going up, we’re collecting a smaller percentage. It’s like a tax decrease. We’re staying revenue neutral, but the percentage is going down.” The city’s levy rate from $3.10 in 2007 to $2.60 in 2012. With the two percent increase, the 2013 levy rate projects to $2.65, or about where it was ($2.64) in 2010. “You can’t stand still on a moving train,” Olson said. “Prices are changing; valuations are changing. I don’t want things to cost more. They do. How do we make it so we can continue the same service? We have to adjust the numbers to get the same percentage.” After Plumb surveyed the opinions of the council members, Olson moved for the two percent

SEE COUNCIL | PG. 3

Tortoise and the Hare, a Retelling

Refinancing $2.2 million in construction bonds BY GARY A. DEVON MANAGING EDITOR

OKANOGAN – While pursuing the refinancing of $2.2 million of bonds used for construction improvements county received an A+ rating from national rating agency Standard and Poor’s. County Treasurer Leah McCormack, with the approval of the Board of Commissioners, has been in the process of seeking refinancing of the Limited Tax General Obligation Bonds issued in 2003 for constructing improvements to the county’s public facilities. The action will save approximately $220,000 with lower interest payments; which is an annual savings of approximately $20,000 for the remaining 11 years. The county is timing the sale of the Refunding Bonds at a historic low in interest rates. As part of the process for preparing for the Limited Tax General Obligation Refunding Bond sale, the county decided

The Missoula Children’s Theatre presented two showings of The Tortoise Versus the Hare at the Oroville High School Commons last Saturday afternoon. The show, a retelling of the classic fable, had a cast of characters made up of K-12 students from Oroville School District. Above, Curly Hare, played by Nathan Rise and Coach Bowlback, played by Madison Whiteaker, carry Bonny Bunny, played by Hanna Curdie, across the finish line. Watching the dramatic ending were the WMCT news crew, MCT’s Amanda Tatum and OHS students Sydney Thornton, as Stormy Feather; Lisa Hartvig, as Bailey Blues and Gwen Hankins as Cupcake O’Rourke. For more see page 4.

Tonasket tax trails by three, Bud Hover by eight

away to find short term, low interest financing (to be paid back as the levy is collected), as well as bids to construct a new roof on the elementary building. While it looks like the Oroville measure may survive, just a couple of votes could make the difBY GARY A. DEVON ference for Tonasket’s Proposition 1. The Sales and MANAGING EDITOR Use Tax levy which would help offset increasing OKANOGAN – What a difference 10 days Criminal Justice costs was way behind in the second count, with those against at 53.85 percent. However makes. It looks like Supt. Steve Quick got the miracle he the third ballot count had the measure down by just was hoping for as Oroville School District’s three- one vote and the fourth count has it down by two. A similar proposition in Okanogan was also down just year capital improvement levy two votes. is now ahead in the ballot “I appreciate the Tonasket count by 45 votes. City taxpayers for considerThe levy would raise $1.2 ing supporting our Criminal million to repair the elemenJustice efforts by it being tary school’s leaky roof, as well so close to passing,” said as doing some other small Tonasket Mayor Patrick remodeling projects. In the Plumb last Thursday. “This Nov. 6 election night count the vote will require a 50 permeasure was failing and that cent plus one so we are actuhadn’t changed in the Friday, ally down by two votes (now Nov. 9 tally where there were 17 down by two as of last count, more votes against. The change so it will take three votes).” came in the third ballot count The mayor added that the GT File Photo which took place Wednesday, city council did not advocate Nov. 14 when the votes for Okanogan County Auditor Laurie Thomas and approval overtook those vot- Tonasket Mayor Patrick Plumb near one of the either a pro or con stance on the issue, but it was someing against by 58. The num- county’s ballot drop boxes. thing that the legislature bers decreased slightly to 45 offered to Washington cities after the last count which was Friday, Nov. 16. The and counties to help offset costs of jail fees and commeasure needs to hold on for only one more count scheduled for Tuesday, Nov. 27, when the election munity police services. “I figured it was a little premature to call the failure will also be certified. of the ballot measure because the auditor retrieved “I guess there were a lot more votes that came in that needed to be counted and that put it ahead,” 432 ballots from the Tonasket City drop box so to said a surprised Quick on Wednesday night. Once see it change the count to that amount was not too approved Quick said the district would move right

SEE ELECTION | PG. 3

Volume 108 106 No. 47 42

“This is a great accomplishment, considering this was the first time we pursued a bond rating grade.”

Gary DeVon/staff photo

Oroville School Levy now passing by 45 votes

OKANOGAN VALLEY GAZETTE-TRIBUNE

County receives A+ bond rating

GT File Photo

North Valley Hospital reviewed the 2013 preliminary budget and approved the implimentation of a tax credit program.

NVH Board approves preliminary budget Tax credit approved BY BRENT BAKER BBAKER@GAZETTE-TRIBUNE.COM

TONASKET - The North Valley Hospital Board of Commissioners approved the hospital’s preliminary 2013 budget at its Thursday, Nov. 8, meeting. Presented by acting Chief Financial Officer Helen Verhasselt, the budget projects total operating revenue at just over $22.5 million, including nearly $21.2 million in net patient revenue. Total operating expenses are projected to be nearly $23.2 million, while other income, (primarily $840,000 in

SEE BOARD | PG. 3

to pursue an underlying rating grade from the national rating agency of Standard and Poor’s. The county was recently notified that the underlying rating grade is “A+”. “This is a great accomplishment, considering this was the first time we pursued a bond rating grade,” said Treasurer McCormack. “This rating grade reflects that the county is very well-managed and has strong financial practices in place for the benefit of our taxpayers. The higher the rating grade, the lower the interest cost.” According to McCormack, “the “A+” bond rating grade was based on five key factors: 1. Demonstrated track record of strong ending fund balances for the Current Expense Fund and Road Fund: 2. Small amount of outstanding debt; 3. Sound financial practices and policies; 4. Experienced management in operating the county in an efficient manner and 5. Signs of a growing economy.” The county’s staff of Commissioner Jim Detro, McCormack, Auditor Laurie Thomas, Risk Manager and HR Director Nan Kallunki and Planning Director Perry Huston, along with Bond Underwriter Jim Nelson participated in and provided the information to Standard and Poor’s in the conference call, which dealt with the topics of management, finances, local economy, policies and long-term planning. The Refunding Bonds will be underwritten by Martin Nelson and Company, a Washington investment banking firm, based in Seattle.

INSIDE THIS EDITION

CONTACT US Newsroom and Advertising (509) 476-3602 gdevon@gazette-tribune.com

levy revenue) will push the overall balance sheet into the black, with a projected net income of just over $413,000. Those numbers are for the combined Hospital and Long Term Care divisions. “We looked at what our current volumes are,” Verhasselt said. “We were budgeting at our current levels for next year.” One area where the budget anticipates an increase in volumes is through the VA clinic. The hospital receives a set amount for each veteran that is enrolled and seen in the clinic throughout the year.

Leah McCormack, Okanogan County Treasurer

Community 2-3 Missoula Theater 4 Letters/Opinion 5

Valley Life 6-7 Movies 6 Classifieds/Legals 8-9

Sports 10 Sports 11 Court Report 12


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