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SAN JUAN COUNTY PUBLIC WORKS

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Ranker and Knapp ask Gregoire for help with Capron funds

Story and photo by Sharon Kivisto

posted 07/15/2008
Before the state added ferries to the state highway system in the 1950s, there were no state highways in the San Juans. To make things equitable, the Capron fund was established in the 1930s to return the gasoline tax collected for roads to the county. The fund still exists though it has been challenged by legislators through the years.

Two years ago, state legislators decided not to include the increase in gasoline tax - approved by voters to improve state highways - in the Capron formula. Instead they designated part of the increase to go to the ferry system.

County councilmembers Kevin Ranker and Gene Knapp talked about this issue with Gov. Gregoire at lunch on July 5 in Eastsound. "The governor was very interested to hear about the Capron Fund situation and very disappointed to hear about the fact we did not receive the 9 cent and 5 cent and had it taken back from us at the end of the legislative session," Ranker said at the Monday, July 14, 2008 council meeting. "I want to keep her feet to the fire on this one...Particularly to the fact, we are the only county in the state that does not receive gas tax back in the state - that does not receive it back in full - because we do not have state highways."

Councilmember Gene Knapp said, "It should be noted that Kevin made a very nice and off the cuff presentation of that problem to her. Her initial response was something to the effect we have to do something about that."


$60K more for county, $60K less for town

posted 03/04/03
A decades-long tradition ended in January. The distribution of the Capron funds is no longer being done on a 90/10 split between the county and the Town of Friday Harbor. San Juan County Treasurer is following the letter of the law and distributing the funds based on percentage of total assessed valuation. This means an additional $60,000 for the county and a $60,000 loss for the town in 2004 according to San Juan County Public Works Director Jon Shannon.

Shannon discovered the distribution formula that has been used for at least 50 years did not conform to the state law. He spoke to San Juan County Prosecutor Randy Gaylord about the distribution. Gaylord said the 90/10 split might be possible through an interlocal agreement.

Shannon passed the information onto the Friday Harbor Town Council at their Feb. 5, 2004 meeting. It was left up to the town to contact county officials.

Capron funds were started in the 1930s. San Juan County is allowed to keep 100 percent of gas taxes and motor vehicle registration fees because it doesn't have state roads. Island County gets to keep 50 percent. Island and San Juan counties are the only ones to receive Capron funds. The legislation is frequently challenged during state budget sessions.

year total Capron fund 10 percent received by town percent according to state law dollar amount under state law difference
1991 $1,169,806 $116,980 7.87 $92,063 $24,917
1992 $1,252,675 $125,267 9.55 $119,630 $5,637
1993 $1,275,692 $127,569 8.77 $111,878 $15,689
1994 $1,339,484 $133,946 7.96 $106,621 $27,325
1995 $1,283,144 $128,314 8.41 $107,912 $20,402
1996 $1,414,708 $141,470 8.07 $114,166 $27,304
1997 $1,541,561 $154,156 7.84 $120,858 $33,300
1998 $1,715,824 $171,582 7.99 $137,094 $34,488
1999 $1,726,728 $172,627 7.71 $133,130 $39,497
2000 $2,070,382 $207,038 7.19 $148,860 $58,178
2001 $2,289,324 $228,574 7.81 $178,796 $50,136
2002 $2,405,748 $240,574 7.30 $175,619 $64,955
2003 2,428,543 $242,854 6.67 $161,983 $80,961

Capron fund distribution doesn't conform to state law

posted 02/06/04
According to state law, the Capron funds are to be distributed between the county and the Town of Friday Harbor based on percentage of total assessed valuation. In 2004 that translates to 92.69% to the county and 7.31% to the town. Instead the Town is slated to receive 10 percent of the fund as it has for decades.

Capron funds were started in the 1930s. San Juan County is allowed to keep 100 percent of gas taxes and motor vehicle registration fees because it doesn't have state roads. Island County gets to keep 50 percent. Island and San Juan counties are the only ones to receive Capron funds. The legislation is frequently challenged during state budget sessions.

San Juan County Public Works Director Jon Shannon discovered the discrepancy as he was trying to reconcile reports received from the state Dept. of Transportation and funds transferred to the county road fund. He explained his findings to the Friday Harbor Town Council at their Feb. 5, 2004 meeting. He said, "I called up Kathy (county Treasurer Kathy Turnbull). She said, we just give the town 10 percent of the money." Shannon asked the county prosecutor if the county could do that legally when the law says it shall be distributed based on property valuations. "I got back a couple of long legal opinions," he said.

"My intention here is to follow the law in everything we do," Shannon told the council. "We have a tremendous number of things which were done on a handshake 50 years ago." He noted there may be a way to legally give the town 10 percent by drawing up an interlocal agreement."

The difference between the 7.31% and 10% in 2004 amounts to approximately $60,000, according to Shannon. He said it is not a given there will be a change in the distribution this year. The amount is not included in the county road fund's 2004 budget. He noted the distribution is up to the county treasurer.

In response to a question from Councilmember Carrie Brooks, Town Administrator King Fitch said he doesn't know what the actual figures are for the Capron fund or for assessments. "We are totally at the mercy of the treasurer and the assessor," he said. "We don't do assessments."

Fitch launched into an explanation of the difficulties the town faces when money is funneled from the federal and state government through the county and then to the town. "In a real sense, it has been historical to share 10 percent. When the GMA funds came through, the county was kind enough to share 10 percent," Fitch said. "It is a difficult model of where you are trying to take the noble road. Jon is bringing a new business model."

Fitch said only in the last few years of Ron Loewen's tenure as county Public Works Director did the town get some of the state and federal money for road projects. "It is probably best if everybody is put on notice by the law so there are no hard feelings," he said. "The new era has arrived."

Shannon, who had been called on to answer questions throughout the council meeting, asked to respond. Mayor Gary Boothman abruptly cut him off, saying it wasn't appropriate for him to speak. If the council wanted him to speak, Boothman would allow it. Councilmember Wally Gillette invited Shannon to speak.

"I want to go on record as saying I would support the continued disbursement of 10 percent," Shannon said. "I just want to get legal steps in place."

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