Regional Facilities Oversight targets funding options

By Kristi Pihl, Herald staff writer

Kennewick, Pasco and Richland city officials are still on a merry-go-round when it comes to determining what kind of regional facility to build -- such as an aquatic or performing arts center -- and how to pay for it.

But they are working to get off what's been a years-long carousel ride of indecision.

During the Regional Facilities Oversight Committee's second open meeting Monday, its members came to a general consensus that property tax likely would not be the best way to pay for the facility.

The committee of Tri-City representatives has met privately for three years to work on getting something built, without much visible progress.

"Every time we meet, you get on the same merry-go-round," said Gary Crutchfield, Pasco city manager, after the committee members discussed the benefits of sales taxes and property taxes.

Typically, property taxes have been used to pay for nondiscretionary expenses, said Matt Watkins, committee chair and a Pasco city councilman. A regional facility is a discretionary expense.

Property tax bills go directly to property owners, Crutchfield said, while sales taxes are paid by both city residents and visitors.

In terms of impact on a community, a sales tax is preferred, he said.

However, the cities need to recognize that other sales tax requests may go before voters, such as if Benton and Franklin counties decide to propose another criminal justice sales tax, said Kevin Ferguson, Kennewick assistant city manager.

The committee examined current property tax rates for all three cities and estimates for each until 2014. The most that Pasco citizens currently pay is $13.52 per $1,000, or $1,352 on a $100,000 home.

Kennewick is at $11.54, or $1,154 on a $100,000 home, while Richland residents pay $11.72 per $1,000, or $1,172 on a $100,000 home.

The current best estimate is that Pasco could be up to $15 per $1,000, Richland near $11 and Kennewick around $12 in 2014.

However, the projections only are an attempt to have a crystal ball, Watkins said.

For example, all three cities have a number of capital projects that voters may be asked to fund through a property tax increase.

Should the committee decide to go with a sales tax measure, a one-tenth of 1 percent sales tax could bring in around $878,000 in Pasco, $1.4 million in Kennewick and $803,000 in Richland, based on 2008 taxable sales.

Kennewick Mayor Tom Moak said he was unsure if a sales tax or property tax measure would fare better.

Since the goal is to create a regional facility, Pasco City Councilwoman Rebecca Francik said she feels a sales tax would be the best, because the entire region, not just city residents, would pay for it.

With three council members in Kennewick departing Dec. 31, including Moak, he said he was unsure what way his council would lean on the funding question.

The committee still needs to determine if it will go after one or multiple projects, Crutchfield said.

In addition, the committee needs to engage the public in the discussion, Moak said.

The committee discussed various ways of including the public in the decision-making process, such as holding an open house or a town hall.

John Givens, who represented the Kennewick Public Facilities District, said he thinks citizens would prefer a sales tax and would be happy to see a project get off of the ground.

In the next 12 months, the cities need to get something on the ballot, Francik said.

Richland City Manager Cindy Johnson cautioned against moving too quickly and said she didn't want to set up the chosen project for failure by asking for it at the wrong time.

The committee is working on both a work plan and a communication plan for its next meeting, scheduled for Jan. 18.

-- Kristi Pihl: 509-582-1512; kpihl@tricityherald.com

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Tuesday, Nov. 17, 2009

Regional Facilities Oversight targets funding options

By Kristi Pihl, Herald staff writer