Adams County budget completed

All cities approve 'levy switch'

By Candice Boutilier

Herald staff writer

ADAMS COUNTY - The Adams County Board of Commissioners will not experience a $362,000 budget pitfall for 2008.

All Adams County cities approved the 2007 "levy switch" before the end of 2007 to prevent the approximate 11 percent total loss, according to the Adams County Board of Commissioner's Office. The "levy switch" allows the commissioners one year to find a solution to potential 2009 budget losses because a switch is not anticipated to happen again in the future.

The "levy switch" requires all Adams County cities to approve a fund switch between the Adams County road district and the county general fund. The switch allows for the county to have a larger taxing area. For the past 29 years the county reimbursed the cities' lost tax dollars due to the switch because the city taxing areas were reduced.

Commissioners were unable to reimburse Adams County cities for 2008 and 2009 due to an unexpected change in state legislation.

Due to increased assessed values across the county, the regular taxation rate collected by cities is considered unlawfully too high. For example, Othello's increased 18 percent. New legislation requires the cities to collect a lower tax rate. The lower tax rate includes collection of the previous year's assessed value plus a one percent increase over the previous year and any new construction instead of the rate set by the city.

The rate collected by the City of Othello was $3.60 per $1,000 assessed value.

The new taxation limit results in an approximate $9,600 loss for the city in 2008 due to the "levy switch." The $9,600 loss is due to the city allowing the county to conduct the "levy switch" in 2006. The switch allowed for the county's 2007 budget to be whole but caused the city to unexpectedly lose $9,600 from their 2009 budget.

The 2007 "levy switch" between the taxing districts results in an approximate $4,800 loss to the Othello 2009 budget.

Hatton is not affected by the "levy switch."

The City of Ritzville is affected by an approximate $350 loss to their 2009 budget.

Lind would face a loss of $30 and Washtucna would face a loss of $19 to their 2009 budgets.