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Council seeks county assessor explanation after property tax shortfall; staff to prepare interfund loan if county gap remains
Summary
Council members raised alarms after staff reported the city received roughly half the expected logging/levy revenue for a pool fund project. The council asked the county assessor to appear at a future meeting and directed staff to prepare an interfund loan option to cover near-term costs if the county does not provide funds promptly.
City staff told the Leavenworth City Council on May 13 that the city received substantially less property tax revenue than expected from a recent levy calculation tied to pool funding and other programs. Finance staff estimated the levy amount that should have been collected at about $404,000; the city actually received roughly $192,000.
Council members expressed concern about the shortfall and asked the county assessor to appear publicly at the May 27 council meeting to explain the calculation and the process that produced the reduced levy. Council members said the issue is about transparency and public trust as much as about money.
City staff said they will seek a near-term interfund loan to cover pool fund cash flow while the city works with Chelan County. The finance director explained that a three-year interfund loan (general fund to pool fund) could be used without charging interest because both funds are governmental fund types; staff will prepare the documentation and a resolution for council action. The city indicated it prefers the county to make the city whole, but recognized the county may need additional time to resolve the collection issue.
Mayor and council members said they had asked for—and received—confirmation that the county assessor, Wes Cornelius, would attend the May 27 meeting to answer questions. Staff said they will present the interfund loan paperwork that night if necessary. Council members and staff also said they will continue to pursue county-level solutions, including a possible interlocal agreement or other corrective action.
No formal council vote to authorize borrowing was recorded on May 13; staff will bring a proposed interfund loan ordinance/resolution for council consideration and possible approval at a future meeting.
