News from Snohomish County Council

As part of the American Recovery and Reinvestment Act of 2009, the federal government created new bond programs to help stimulate economic recovery. Based on the local unemployment rate Snohomish County was awarded authorization to issue $13.2 million in Recovery Zone Economic Development Bonds (RZ-EDB). RZ-EDBs are taxable, tax credit bonds that allow state and local governments to obtain lower borrowing costs through a 45% federal interest payment subsidy.

"The interest rate on these bonds was a phenomenally low 2.79%," said Councilmember Dave Gossett. "This is a great deal for taxpayers and allows the county to build important projects."

The county reviewed a number of projects to identify high priority needs that met the federal criteria. Each project was then evaluated to make sure that the on-going debt service could be paid.

Two tiers of projects were identified that represent a primary and secondary list of projects to be funded with the bonds. Tier 2 projects were necessary in case any of the Tier 1 projects were delayed. Federal requirements made it essential to have a list of projects that can meet the timing requirements of the ARRA legislation.

"While the list includes projects all around the county I was most excited about the signal at 96^th/39^th Avenue SE and the intersection improvements at 180^th Street SE/Interurban Blvd," said Gossett. "The light at Archbishop Murphy High School will greatly improve safety and the 180^th improvements will go a long way in assisting traffic flow."

Another component of the bond restructuring was the refunding of $4.8 million of 2009 Bond Anticipation Notes (BANs) issued in 2009 for Airport projects.

The BAN's were issued to meet the county's funding requirements for $43.8 million in capital projects underway at the Airport in 2009. The balance of the funding came from federal grants and a state loan. This bond issue for about $4.8 million will complete the County's debt issuance to support the projects.

"Together these projects total over $56 million in new construction in Snohomish County," said Gossett. "That's a lot of jobs that we desperately need right now."

Council Work To Begin On 2011 Budget

On September 30 the Snohomish County Executive will submit to the County Council his recommendations for 2011 Budget. The budget address will take place at 10 AM on the first floor of the Drewel Building in Everett. The general public is welcome to attend.

"Addressing the fiscal challenges in 2011 will be very difficult," said Councilmember Dave Gossett. "We've been told to expect about a $20 million shortfall. That's roughly a 10% cut on top of the roughly 10% cuts made in 2009."

The County Council jump started their budget process this year. As part of their oversight function County Council Chair Dave Gossett and Vice Chair Dave Somers implemented monthly meetings with the other Snohomish County elected officials. The group discussed a collaborative framework for the development of the 2011 budget. Discussions focused on distinguishing between mandatory, non-mandatory and discretionary county services. The level at which the county provides those services was also a key discussion.

"The Council will have a little over seven weeks to review and act on the budget," said Gossett. "It's a very tight timeline and having preliminary discussions earlier will help."

In reviewing the Executive's recommended budget the Council will be looking to see how the Executive plans to address organizational changes, revenue assumptions, reductions in service, and efficiency opportunities.

"I'm encouraged by the continued efforts of the county elected and department heads to be innovative," said Gossett. "They will do all they can to continue to provide quality service to the people of Snohomish County."
The Council will be holding several public meetings around the county in the next few weeks. The Council is very interested in the public's ideas regarding budget priorities.

"We want to make certain that the budget we adopt is fiscally responsible while maintaining the key services our citizens desire," said Gossett. "We hope to have a good turnout at the forums and are looking for other ways to involve the public in the process."

The public forums will be held at the following locations:

Monday, October 11, 6:00-9:00 PM: Stillaguamish Senior Center, 18308 Smokey Point Blvd, Arlington

Tuesday, October 12, 6:00-9:00 PM: Willis Tucker Park, 6705 Puget Park Drive, Snohomish

Monday, October 18, 6:00-9:00 PM: Edmonds City Council Chambers, 250 5th Ave N, Edmonds

I hope you found this eNEWSLETTER informative and useful. You can make it even more valuable by suggesting topics and issues for future newsletters. Please contact me at 425-388-3494, or e-mail Dave.Gossett@snoco.org. If you would like to share this newsletter, select the Forward email link below.

Sincerely,

Dave Gossett
Snohomish County Council