SOUNDER THE ISLANDS’
Serving Orcas, Lopez and San Juan County
Graduation special – Inside this edition
WEDNESDAY, June 3, 2015 VOL. 48, NO. 22 75¢ islandssounder.com
Councilman Rick Hughes on ferries, planning for growth and more by COLLEEN SMITH ARMSTRONG Editor/Publisher
Vigor Industries photo
The new 144-car ferry Samish will start serving the San Juans on June 14.
All three San Juan County Council members are Geminis. It’s a synchronicity that extends beyond their astrological signs, according to council member Rick Hughes. “From the day to day operational side of it, we get along lock, stock and barrel,” said Hughes, referring to his fellow elected officials Bob Jarman (district 1) and Jamie Stephens (district 3). Hughes says it’s been an exciting 2015 for the council and he is particularly proud of a law San Juan County helped pass at the state level. House Bill 1868 broadens the state statute defined list of expenditures governing the county road fund to include “marine uses relating to navigation and moorage.” The change will allow San Juan County to use money from
its road fund on maintaining, improving and replacing marine facilities including Odlin dock, Obstruction Pass boat launch and Hunter Bay dock and boat ramp. Hughes has long advocated for state, county and grant funding to support the county’s marine facilities. His efforts in Olympia were aided by council members in other Washington counties as well as state Rep. Kristine Lytton who introduced the bill, and supported by state Rep. Jeff Morris and state Senator Pam Roach. “The bill passed because Jamie Stephens was in Olympia all the time working on county issues,” Hughes said. “So I was able to focus on one particular thing for the county.” If the Senate and House approve their budgets, Hughes said the county is set to receive $1 million in transportation funding for a study on how to fix an erod-
Quarterly review of county finances by F. MILENE HENLEY County Auditor
On a recent sunny afternoon, I saw a cart of purple and yellow flowers sitting next to the red, white and blue ballot drop box on the green lawn in front of the brick-red courthouse. The scene struck me, and for a moment I was seeing a place I see every day in a way I had never seen it before. Looking at the every-day familiar with a fresh eye can be a challenge. So each quarter, when I sit down to report on the county’s finances, I try to start with a set of questions, and I look for answers. For the first quarter of 2015, I asked myself: What’s our cash position, compared to budget and to previous years? How’s our revenue doing, compared to budget and to previous years? How about spending? Most importantly, are there problem areas we need to watch? For the first quarter of 2015, after years of recession reporting, I can truly say that the county, as a whole, has recovered to prerecession levels of cash. Of course general
fund expenditures have gone up almost 30 percent since 2007, but at least we’re close to being back on par. There has also been a shift in the nature of the county’s cash holdings over that period. There is less money being held in general funds and more being held in reserves: lodging tax reserves, rainy day reserves, capital reserves, etc. These savings ensure that the county will never again be hit as hard as we were by the recent downturn. The revenue picture is more mixed. It’s still early, but sales taxes are on track to have another strong year, probably beating budget by 5 percent or more. Real estate excise taxes (REET) are having a spectacular year, dwarfing their already amazing performance last year. REET revenues go into the Land Bank and capital improvement funds. Another special revenue, camping fees collected by parks, is also up – a small revenue source, but another positive sign of economic activity. On the other hand, permitting revenues are falling about 10 percent short of budget. The fee income tells only half the story, of course.
Permit applications (a precursor to permit revenue) are climbing steadily; if that trend continues, permit revenue may catch up with permit activity. Oddly – given the level of real estate activity – recording surcharges are also having a sluggish year, a phenomenon that affects primarily our affordable housing programs. In total, though, revenues so far this year look good, relative both to budget and to prior years. Spending is also in line with budget. The few deviations (such as high expenditures on information technology) are easily explained (in the case of IT, by expenditures planned for 2014 being pushed into 2015). Year-to-year, however, the trend is definitely up: general fund expenditures are budgeted to be 4.7 percent higher in 2015 than in 2014, following 6 percent increases in 2013 and 2014. As for what to watch, the increases in expenditures lead the list. 2015 expenditures are budgeted to exceed 2015 revenues by so much
SEE FINANCES, PAGE 5
ing road near Agate Beach on Lopez and parking improvements at the Orcas Ferry Landing. The state department of transportation owns five acres above the ferry landing and Hughes is hoping the county can lease or buy it to provide up to 100 free spaces for long-term and short-term parking. In addition, the area would be for rental car pickups and shuttle drop-offs. Washington State Ferries is also leasing the vacant building on the county dock and will turn it into a waiting area. “We have a really good opportunity to turn the ferry terminal into a better space,” he said.
Other county news
For the first time in San Juan County’s history, it is compliant with the Growth Management Act, which is a way for counties to manage growing through critical areas, urban growth areas and development regulations. “Now that everything is
SEE HUGHES, PAGE 6
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