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Council warned REET receipts have fallen sharply; auditors ask for plan to shore up accounts
Summary
Mayor Randall Sasser and Treasurer Angie Hartmann told the Mossyrock council that Real Estate Excise Tax (REET) receipts dropped from $32,000 in 2022 to about $15,000 in 2024, and state auditors have asked the city how it will address declining revenues and capital-fund constraints.
Mayor Randall Sasser told the Mossyrock City Council that revenue from the Real Estate Excise Tax, a key source for capital spending, has declined substantially and that auditors are asking how the city will respond. "We received $32,000 for REET in 2022; about $16,000 in 2023; and it went down to $15,000 in 2024," Sasser said, noting the trend reduces funds available for streets and parks.
Treasurer Angie Hartmann explained how REET collections are remitted and how the funds are restricted. "We receive a quarter percent of funds for REET 1 and REET 2 which is a total of half a percent," Hartmann said, adding that REET 1 is intended for capital improvements and that REET 2 is limited by state law (RCWs) in what it can fund. Hartmann said the city has not tapped its REET 1 capital account because there have been no capital projects to spend it on.
Council members discussed the operational squeeze that follows declining REET and other constrained revenues. Mayor Sasser urged the council to keep revenue sources in focus when weighing development or project approvals, and he pointed to auditors' requests that the city articulate how it will shore up affected accounts. Hartmann said she will prepare updated budget figures for the council’s next meeting so members can consider options and next steps.
