The Opportunity Fund

 

The Opportunity Fund is not an Infinite Resource

In 1997 the State Legislature established RCW 82.14.370 Sales and use tax for public facilities in rural counties, (1) this tax is in addition to all other taxes. This 0.09% sales tax Opportunity Fund is to assist depressed rural counties, providing limited funding of publicly owned infrastructure projects, however, the Opportunity Fund is not an infinite resource and this additional tax is set to EXPIRE in 2023 and quite possibly may not be reauthorized by the State due to budgetary shortfalls and conflicts with other counties.

Currently there is a balance in the Clallam County Opportunity Fund of $3,106,834.00. In the breakdown of Grants and Loans, less repayment, the fund has provided $11,575,881.00 and does not include the $1,285,952.00 in grants to the Port for the Composites Recycling and the City of Port Angeles for waterfront improvements or the $150,000.00 to the Economic Development Council for “staffing”.  Add to this total the $10 million dollar General Obligation Loan from the State Public Works Trust Fund for the Carlsborg Sewer Project the total outlay from the Opportunity Fund is $23,011,833.00.

 

The $10 million dollar loan is to be repaid from the Opportunity Fund at a cost of $513,229.00 annually over 20 years, but, the Opportunity Fund EXPIRES in 2023 only 8 years into the loan repayment schedule leaving 12 years of payments to be paid from the County General Fund or the General Fund Reserves.  So, for the commissioners and Clallam County Public Works to state that “the Carlsborg sewer will be entirely paid for by the Opportunity Fund” is complete and utter nonsense, a fabrication to quell any possible opposition from county taxpayers as to the costs and obligations associated with the Carlsborg sewer project.  The citizen of Carlsborg and Clallam County SIMPLY CANNOT AFFORD THIS.

Two previous studies, (Parametrix, Inc., December, 1994 Clallam County Department of Community Development – Carlsborg Comprehensive Sewer Study and KCM, Inc., September, 1998 Clallam County Department of Community Development – Carlsborg Capital Facilities Plan) had declared the sewer project “Profoundly Cost Prohibitive”. In 2010,Clallam County PUD #1 found the sewer project “Financially Infeasible” even with the approved $10 million dollar State Public Works Trust Fund Loan.

The Carlsborg Sewer Project will be unable to pay for its self from the out-set, the financial plan shows a “capital contingency deficit” of $94,496.00 in construction year 2015 and the entire financial plan is based on “ASSUMPTION, PROJECTION and ESTIMATES” in the number of “FUTURE” connections and ERUs over 40 years.  Their “estimated Base Case” 2.15% annual growth increase in Carlsborg is PHANTOM GROWTH, given the fact that Carlsborg has lost 3% of its population every year since 2010.  http://factfinder.census.gov/faces/nav/jsf/pages/community_facts.xhtml#none  (search for Carlsborg CDP.)

Clallam County Commissioners and Clallam County Public Works have Carlsborg and Clallam County on the fast track to an enormous and devastating financial impact. Clallam County is Going For Broke.