Whatcom County's road budget woes will require some creative accounting
At issue is the Road Fund, which is a budget category where part of the county's property collections and its share of the state gas tax is allocated. State and federal grant money for road projects goes there too, and that's where money comes from to pay for road construction, repairs, snow removal and related projects.
That fund is sometimes in the red when money is needed to pay the bills during the busy summer construction season, Public Works director Elizabeth Kosa told the County Council in a committee meeting Tuesday.
It's partly because of higher labor and material costs, a drop in gas tax receipts, and also linked to the timing of property tax collections in spring and fall.
'We have a much higher budget authority than the funds we have available to spend. And I can commit to you, 100%, we will not spend beyond what we have,' Kosa told the council's Finance and Administrative Services Committee.
Cash flow is threatening important summer road projects such as paving on Everson-Goshen Road and a slide removal on Lummi Island, she said.
Because of this, Kosa is asking the County Council to authorize interfund loans to finance cash flow for Road Fund, in amounts up to $4 million for a term not to exceed two years.
County Council members voted unanimously Tuesday to consider the matter at their next meeting on May 27.
Kosa said that the Public Works budget is reeling from increased labor and construction material costs, some unexpected expenses, and a 'pattern of deficit spending has continued for over two decades.'
To save money and balance its 2025 budget, Kosa said that Public Works is delaying some projects, continuing to reduce spending, and freezing 14 vacant positions for several years.
The Road Fund 'is not nimble enough to absorb unexpected costs,' she said.
'We're recommending that our lowest month of the year contain $10 million balance in available cash flow. Without this we will not be able to float disasters such as a road washout or other emergencies. Any emergency would result in a request to use other county funds or a loss of service. The plan that we have proposed will get us through this year, provided no additional emergencies arise,' Kosa said.
Public Works isn't exactly robbing Peter to pay Paul, because such interfund loans must be repaid.
Deputy Excutive Kayla Schott-Breseler said the loan could come from any fund, but most likely it would be the General Fund or or real-estate excise taxes.
'The way that the ordinance is set up is that it gives the treasurer flexibility to chose the fund that is most healthy for cash flow purposes,' Schott-Breseler told the council.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indianapolis Star
a day ago
- Indianapolis Star
Boarded-up buildings, vacant lots in Indy to be replaced with affordable housing. Here's where
A developer plans to build hundreds of affordable housing units at multiple Indianapolis sites that currently hold boarded-up apartment buildings and vacant lots. The projects by Carmel-based Sullivan Development will total more than $70 million and are expected to add more than 270 low-income apartment units by 2027, most of which will sit along the 38th Street corridor south of the Indiana State Fairgrounds. The Indianapolis City-County Council on Aug. 11 approved a local tax break for the developer worth $3.2 million to support the new housing. The developer said the projects were also awarded $29 million worth of federal low-income housing tax credits by the Indiana Housing and Community Development Authority, which manages a program that saves developers money on building costs so they can tamp down rents for low-income tenants. City leaders say new supply is sorely needed in an Indianapolis market where average rents have risen by an estimated 40% since 2019. RentCafe data shows that the average monthly rent price in Indianapolis, where two in five households rent, increased from nearly $900 in 2019 to more than $1,250 as of July. Sullivan Development's new units are set aside for households that earn 60% or less of the area median income. That means a single person can qualify if they earn up to about $46,000 and a four-person household can earn about $66,000, according to Sullivan's Development Director Travis Vencel. "We find that most residents are ... currently living in substandard housing or they've outgrown their housing. They have a job. They want to live in the neighborhood where they're established," Vencel said during a July city meeting. "Finding quality, new-construction (low-income housing tax credit) properties allows them to do just that." The largest development, Monon 35, will add 200 units to a vacant lot that functioned as a railyard for much of the 20th century until the adjacent railroad was abandoned in the 1980s, Vencel said. The lot is now overgrown with vegetation. The $48 million complex will sit at 3500 Sutherland Ave., just east of where the Monon Trail crosses Sutherland Avenue on the south side of Fall Creek. Residents will have access to nearby trails and live a short walk away from Purple Line bus stops near the Indiana State Fairgrounds. The building will feature a range of units with one to three bedrooms. The upper limit on rent for a one-bedroom is about $1,200, while a three-bedroom will cost roughly $1,600, Vencel said. Hearing those prices, Republican City-County Councilor Michael-Paul Hart questioned how the units count as "affordable housing." The rent prices are tied to "Fair Market Rents" determined annually by the Department of Housing and Urban Development for each metropolitan area, Vencel said. They serve as price caps that landlords cannot exceed if they accept low-income housing tax credits. The price thresholds vary by the number of bedrooms and by ZIP code, meaning a landlord can charge more to low-income tenants in wealthier areas. Construction of the Monon 35 property is set to begin this fall and finish by mid-2027, Vencel said. The apartments will add to a building boom along the Monon Trail between downtown Indianapolis and 38th Street. Just blocks to the south, the Domino at Monon 30 is opening this year to bring more than 200 market-rate units to the area. The developer also plans to build 40 new low-income units near the intersection of 38th Street and College Avenue, where a few burned-out apartment buildings currently sit boarded up, Vencel said. The new units to be called Broadway Park will sit in the 600 block of East 38th Street, steps away from an IndyGo stop served by the Purple and Red lines. About two miles south, the developer will build a 34-unit complex on a vacant lot near the intersection of 22nd Street and College Avenue, Vencel said. The low-income apartments will sit kitty-corner to the Townes at Kennedy-King, a recent townhome development by Onyx+East along the growing 22nd Street corridor. Taken together, the 74 new one- and two-bedroom units will cost about $25 million to build, Vencel said. Rents will be similar to Monon 35, with one-bedrooms going for about $1,100 and two-bedrooms priced around $1,300. Construction is expected to begin this fall and finish in 2027. At all three complexes, Vencel said residents will have access to an in-house food pantry and financial courses that help them save up money. "We like our residents to come and stay with us for a long time, but also to use us as a building point for them to eventually move into either market-rate housing or to buy a home," Vencel said during the July meeting. "When they come to us and they're someone at 60% (area median income) or less, over time they usually graduate out of that."
News24
12-08-2025
- News24
Delays, cost overruns: Treasury not involved in Parly rebuild despite dishing out billions
The budget to rebuild the fire-damaged parliamentary buildings has increased from just over R2 billion in 2023 to more than R4.4 billion in 2025.
Axios
11-08-2025
- Axios
Hogsett to introduce budget proposal without tax increases
The City of Indianapolis' budget will grow next year — just not as much as leaders expected before the legislative session. The big picture: Mayor Joe Hogsett will introduce his budget proposal to the City-County Council tonight, and it's expected to include small cuts for most departments, outside of public safety. Catch up quick: Lawmakers passed a property tax overhaul earlier this year that dramatically cut how much cities bring in from that major source of revenue for Indy. The city could raise local income taxes to make up the gap, but Hogsett has said from the outset that he's "not interested" in raising taxes. What they're saying: Dan Parker, Hogsett's chief of staff, told Axios the mayor will introduce a balanced budget with no tax increases. The budget will grow, Parker said, but departments were asked to look for savings so the city could meet the obligations of labor agreements made last year — before the property tax changes. The city will also start "laying the foundation" to capture the $50 million in road funding that lawmakers paved the way for in 2027, so long as the city can match it, Parker said. The other side: Minority Leader Michael-Paul Hart said he'll advocate to protect the council budget from any cuts. The council budget is $3.5 million — a drop in the bucket of the city's $1.5 billion annual budget. In his blog, Hart said that while the city "still faces serious decisions about how to balance its books," the council is committed to passing a balanced budget. Reality check: Despite opposition from the Republican caucus and three Democrats last year, Hogsett passed the budget he wanted — with new investments in pedestrian safety and raises for city employees. Yes, but: Tension between Hogsett and the council has only grown since then as the investigation into his handling of sexual harassment allegations against his former deputy, Thomas Cook, uncovered text messages between Hogsett and several young women that some councilors have called inappropriate. Hogsett told Axios he developed a "casual, conversational" style of communicating with those he worked closely with but did not mean to make anyone uncomfortable. At least four councilors have called for Hogsett's resignation — something he's firmly resisted — which could complicate budget negotiations.
