A Taxing Issue

David Camp is a CPA by trade and a sailor by inclination. He writes a monthly installment of Port Knocker notes for Whatcom Watch.

Portknocker (noun, slang): artisanal miners typically operating without permits.

Port Knocker Notes are a collection of port-related thoughts, facts, ideas and random complaints from David Camp. The opinions in this column do not necessarily reflect those of Whatcom Watch.

I’m sitting here at the Port Commissioners’ meeting as they chew over the budget for the Marine Life Center. Commissioner Scott Walker is pushing for more information and asking if the support for the center is even part of the port’s mission. The discussion continues and the Solitaire game on my laptop is looking more and more interesting – these meetings almost seem designed to bore the heck out of people. My theory is that the port staff view the meetings as a form of penance which gives blanket absolution for minor sins.

I suppose my expectations have been distorted by the television, which seems to cater to those with an attention span of three seconds or less. Worse, it trains peoples’ attention spans to attenuate to just long enough to absorb a commercial message. Just in case my own attention span gets any worse, I limit my TV watching to the odd hockey game. I’m sorry to report that my attention span has not yet grown to the point where I find Port Commissioners’ meetings entertaining. But I’m hopeful.

I’m starting to analyze the port’s financial data for the past ten years. I intend to present more detail in future articles. All data is from the port’s published financial reports and audited financial statements, unless noted.

The port has the authority to tax and the port’s levy comprises a part of every Whatcom County property tax bill. Total taxes levied were $5.0 million in 2004 and $7.4 million in 2009. This is an increase of 47.7 percent in five years, and represents an average annual increase of 8.1 percent.

During this period, the population of Whatcom County has increased from an estimated 179,500 to 200,434 (source: U.S. Census Bureau), which represents an increase of 32 percent, at an average annual increase of 2.2 percent.

Here’s where it gets interesting – the taxes paid per capita (i.e., per man, woman, and child living in the county) have increased by 32.3 percent from 2004 to 2009, which represents an average annual increase of 6 percent. This is about 4 percent above the rate of inflation for the period.

My question is: why does the port continue to increase taxes on Whatcom County residents at higher than the rate of inflation? How many businesses in the county can say that they have been able to increase their prices by six percent per year? How many businesses are even making as much money now as they did in 2004?

Now the port is doing a much better job in running its operations than it did earlier. Operating deficits have decreased from $(4.2) million in 2004 to $(1.2) million in 2009. In my opinion, the port’s operations should be run like a business, but a business to benefit county residents. So how is continually increasing the burden on the taxpayers of Whatcom County benefiting them? Where is our dividend from the business run on our behalf? §

Editor’s Note: In 1995, the port entered into a yearly agreement with the Northwest Discovery Project to operate the Marine Life Center. The facility is located at the Harbor Center Building on Roeder Avenue. Since 2005, the center has charged admission to be used for operation, maintenance and repair, reducing the port’s funding participation. The center had approximately 19,000 visitors in 2009, down from 23,000 visitors in 2008. The Northwest Discovery Project has proposed building a Terraquarium. The Port Commission supports the Terraquarium, which will include a state-of-the-art zoo and aquarium, dynamic land- and water-based exhibits with digital presentations and educational and research facilities in partnership with Huxley Environmental College at Western Washington University.