During a routine audit of the property tax levy for San Juan Island Park and Recreation District, the assessor discovered that he had mistakenly adjusted the levy rate above the maximum amount approved by voters. Assessor Charles Zalmanek said that he is responsible for the error and he has apologized to the Board of Island Rec for the hardship this will cause.
What happened is that the assessor calculated the levy rate (expressed in cents per $1,000 of assessed value) so that each year the levy amount (total dollars collected) increased by the one percent limit factor. Unlike most other property tax levies, the levy rate should not have exceeded the original rate approved on the ballot and with decreasing property values it should have caused a reduced levy amount to be collected. The result was taxes were collected for Island Rec over the amount allowable under the law for the past three years in the amount of $377,192.72.
The assessor has consulted state statutes that anticipate this type of problem and confirmed with the Department of Revenue on how to make an adjustment. The financial implications are sobering for Island Rec. First, the tax rate will be reduced to the voter approved maximum, then it will be adjusted further downward for each of three years to cover one third of the overpayment. The assessor estimates that the tax revenue to Island Rec will be reduced from $605,000 in 2014 to $305,000 in 2015, which is the final year of their six-year levy.
The assessor recognizes that it will be more urgent than ever for the Island Rec Board to ask voters for their help in solving this problem in 2015.
Island Rec has been in existence for over thirty years providing parks and recreation programs for children and adults. It dedicates a portion of its revenues to assisting with the public school’s athletic programs and is poised to take over the maintenance and operations at the School District’s Friday Harbor Fields. For more info, about Island Rec visit http://www.islandrec.org/annual-report/ .
Questions can be directed to Charles Zalmanek at (360) 378-2172 or assessor@sanjuanco.com.
