Serving Whitman County since 1877
County Commissioner Art Swannack presented a “driving tractor” idea Monday at a commissioners' workshop session in the courthouse. He said he was thinking about a better way for Whitman County to use its .09 revenue.
The .09 funds are generated from sales tax option in the county. The county now generates approximately $450,000 a year from the tax but puts more than 75 percent of that revenue into a reserve fund. The fund, now at $2.1 million, has been built up in the event the county at some point has to meet its obligation to provide infrastructure for a long-stalled Hawkins Company development along the Moscow/Pullman highway on the Washington side of the state line.
The county committed $9.1 million to the Hawkins project with the idea of making those payments from sales tax revenues generated for stores which would be located on the site.
The commissioners noted they have not heard of any progress or indication that the Hawkin's project is moving forward.
“We haven't had any indication that anything is happening there,” said Swannack.
Swannack's idea would be to make short-term loans from the now idle reserve fund.
“It might be doable, as long as it fulfills the basic mission of economic development,” said Gary Petrovich, county administrator.
The .09 funds are required to be used for projects that have the potential to create new jobs and retain existing ones. The funds can also be used for infrastructure.
“This could be one more piece of funding for small towns,” said Swannack.
The program, if established, would be set up as a loan program, not a grant program.
Swannack said it has the potential to bolster the state's public works trust fund which has been reduced as a fund source for local governments.
“The public works trust is funded through the legislature and offered low interest loans to towns and cities that needed infrastructure,” explained Swannack. “But they've been shifting those dollars to other things as a part of budget balancing. This could be a tool to help.”
Swannack said it is important right now to explore the rules and regulations for use of the .09 money to determine how a short term loan program could work for the towns and cities.
The county now takes $100,000 a year from the .09 revenue and assigns it the county's Blue Ribbon Advisory Task Committee to award grants to local projects.
This year the full $100,000 went to The Center project next to the library in Colfax. It was the lone applicant for the funds.
Under the proposed loan program, the county would continue the annual $100,000 in grants.
Petrovich and Maribeth Becker, clerk of the Board of County Commissioners, will meet to explore the possibilities and applicable rules and regulations. The commissioners did not have any timeline, and the concept was tagged “very preliminary.”
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