Port commission candidates debate the port’s best course

Posted 10/9/19

Voters will decide this November whether to tax themselves to help the Port of Port Townsend fund capital projects.

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Port commission candidates debate the port’s best course

Posted

Voters will decide this November whether to tax themselves to help the Port of Port Townsend fund capital projects.

But both port commission candidates have decided that they will be checking the “no” box on the proposition this November.

“As a voter and citizen advocate, I will not vote to support the Proposition 1 ballot measure at this time, because I do not have a clear understanding of how the money will be used,” said Pam Petranek, who is running for port commission against Chuck Fauls for the District 1 seat. “I have concerns about our Port’s ability to ensure clear financial accountability that is understandable for informed decision making.”

The Port Commission approved a resolution in March that was a notice of intent to let the public know that the port was thinking it might levy such a tax.

At that time, Petranek spoke out at a commissioners meeting, criticizing the lack of public participation in the decision making.

Citizens of Jefferson County were thinking along the same lines. After hearing about the port commission’s resolution, a group of citizens distributed a petition which gained over 2,000 signatures. That, under state law, forced the levy to a vote of the public, taking away from the Commission the power to decide.

Now, it will appear on the November 5 ballot.

Petranek’s competition, candidate Chuck Fauls also wonders where the money will go.

“The ‘spirit’ of the Industrial Development District provision is to fund new economic development,” he said. “When one examines the projects to be funded it’s apparent the revenues will be used for maintenance and repairs, none of which will generate a dime in new revenue.”

Fauls is worried the money, which will come from all three districts, will only fund projects in District 1, like the Point Hudson jetty and the Boat Haven.

“Climate change and sea level rise is real and pouring millions of dollars into assets that could be wetlands in 10 to 20 years is fiscally irresponsible,” he said.

The port formed an Industrial Development District in 1966, interim port director Jim Pivarnik explained, which allows the port to levy a tax that is limited in time and scope. The state statute governing IDDs allows three levy periods. The port’s first six-year levy period was taken in 1966, and the funds generated were used to make improvements to the Point Hudson jetty.

The maximum amount that can be taxed is $15 million over 20 years, Pivarnik said.

The nature of the multiyear levy means that coming up in November, commissioners could impose a tax of up to 45 cents per thousand dollars of assessed property value.

But it is unlikely that they would tax that much, Pivarnik said.

Instead, they could tax 10 cents per thousand in 2020, and then decide not to tax anything next year. But because the commission is always changing, it is difficult to know how future commissioners would levy taxes.

By law, the amount raised by the levy can only be spent on capital infrastructure projects.

Currently, the port’s list of capital funding needs includes projects such as:

• Rebuild both north and south Point Hudson jetties (constructed in 1934): $7.5 million

• Emergency repairs for the main breakwater at Boat Haven: $350,000

• Resurface the Boatyard for stormwater compliance: $350,000

• Dredge the marina entrance at Quilcene: $250,000

• Repair buildings at Quilcene Marina: $150,000

• Rebuild the boat ramp at the Quilcene Marina: $400,000

Their total list of 18 capital improvement projects that span across the port’s properties in the county totals to about $14,721,000.

But both Petranek and Fauls said they aren’t convinced the port has a viable plan. Both want more public input on the matter before they will check the “yes” box.

“Let’s create a plan and a funding strategy for the infrastructure owned by our community,” Petranek said. “There are citizens who are deeply concerned and who are willing to invest their time & talent to create solutions for the financial future of our Port.”

The commission hasn’t decided how much it will tax for the first year if the levy is approved.

Each year, as part of the public budget process, the commissioners will decide if and how much they will tax.

“The port faces tens of millions of dollars in critical infrastructure projects that need to be undertaken if the port’s core lines of business and our community’s working waterfront character are going to be preserved for future generations,” said deputy port director Eric Toews at the time the commission passed the resolution. “The commission and subsequent commissions would determine how much, if any, should be levied and collected in the ensuing year as part of the annual budget process.”

“The working waterfront, that’s not just a catch-phrase,” Toews said. “To put it in perspective, the port’s infrastructure is the foundation that supports 450 private sector jobs here at Boat Haven alone, about 1,100 direct jobs county-wide and about 2,200 total jobs in our county. Port infrastructure is really the key to all of that.”