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HomeMy WebLinkAboutPlanning August 5 20141 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 WHATCOM COUNTY COUNCIL Planning and Development Committee August 5, 2014 CALL TO ORDER Committee Member Rud Browne called the meeting to order at 3:00 p.m. in the Council Chambers, 311 Grand Avenue, Bellingham, Washington. ROLL CALL Present: Barbara Brenner and Rud Browne Absent: Ken Mann Also Present: Pete Kremen Brenner moved to appoint Rud Browne as acting Chair for this meeting. The motion carried by the following vote: Ayes: Brenner and Browne (2) Nays: Mann (1) COMMITTEE DISCUSSION 1. BRIEFING FROM PLANNING AND DEVELOPMENT SERVICES STAFF ON RECENT AMENDMENTS TO STATE LAW THAT PROVIDE COUNTIES WITH THE AUTHORITY TO MERGE OPEN SPACE TIMBER PROGRAMS INTO FOREST LAND PROGRAMS (AB2014 -281) Erin Osborn, Planning and Development Services Department, gave a staff report and stated there are recent amendments to the State open space timber land program and forest land program. She explained the two programs, their amendments, and the possibility of merging the programs. If the merger took place, the owners of lands classified as timber land would not be able to opt out without paying back taxes. Instead, it would just terminate the timber land designation and they would transition directly into the forest land designation. Their assessed value won't change. With the new program, designated forest land has ten years of compensating tax at time of removal or withdrawal, without interest. Now, the current open space timber designation requires interest on the seven years' back taxes. It's a better deal for property owners to pay for ten years' back taxes without interest than seven years' taxes with interest. Janice Judge, Assessor's Office, stated the forest land removal is not calculated back ten years. It's the current market value less the current timber assessed value times ten years at the current tax rate. An appraiser would have to look at the property and comparable properties to determine market value at the time of removal. Brenner asked and there was discussion about whether there are calculations that can tell them in the future which is the better deal. Judge stated there aren't. deal. Brenner stated make sure people know that it's not known which would be the better Planning and Development Committee, 8/5/2014, Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 Browne asked if the land is valued with or without the timber. Judge stated the value is without the timber. Brenner stated she would like to know if the current assessment includes the value of timber. Browne asked the prescribed rate of interest. Judge stated the rate of interest is one percent per month on the open space timber removal. It compounds. Kremen stated the pros will outweigh the cons. That's why the State legislature passed the amendments. Browne asked for an example of the cost for taking a parcel out of designated forest land versus timber land based on the new rules. Judge stated she can provide that information. Brenner asked and there was discussion about whether staffing requirements in the Planning Department would decrease. Osborn stated applications have been low in recent years. It would shift work away from the Planning Department staff. The work would be done in one central location. Browne asked if this can impact possible construction on commercial forest land. Judge stated the minimum number of acres have to be growing timber for commercial harvest. Brenner asked if the County can still require a timber plan. Judge stated the Assessor can. Brenner asked the effect on taxes, bonds, and levies if the County doesn't merge the program. Judge stated the designated forest value calculates into the timber assessed value, which also calculates into the excess levy. There would be some impact. It's still assessed the same value for regular property taxes. It wouldn't affect a regular tax levy in any way. The State uses a formula for timber assessed value for each county. That calculates into excess levies. Browne asked what is an excess levy. Judge stated those are voted levies, such as school bonds or fire district bonds. They're outside the regular property tax limit. Osborn read from the State of Washington fiscal notes summary regarding merging the programs, which may result in a loss of revenue from foregone open space timberland program application fees. This revenue is likely to be compensated for through expenditure savings. Combining the programs would increase timber assessed values for calculating rates for excess levies and bonds, minimally reducing levy rates for other taxpayers. Browne stated this analysis indicates revenue losses from this change are expected to be negligible. Brenner stated she doesn't understand the difference. The assessment is the same, whether the land is designated open space timber or forest land. Judge stated there is a complicated State formula to calculate a composite timber rate. They only use designated forestry land. That rate is applied to private and public harvestable acreage. It goes into Planning and Development Committee, 8/5/2014, Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 the levy calculation for excess levies. That's not done for the open space timber designation. Browne asked the zoning for commercial forest land. Osborn stated rural forestry allows one dwelling unit per 20 acres. Commercial forestry may allow a caretaker's unit. Browne asked if the amendments change dwelling unit density. Osborn stated it does not. A question is whether the Assessor's Office is willing to take on the merger. Judge stated they are. They are communicating with landowners to make sure there are timber management plans. If they need to review timber management plans, there isn't a planner in the Assessor's Office. Brenner stated having a timber plan allows people to know what the rules are. She would like to know if the Council can add a stipulation in the ordinance that timber plans are required. OTHER BUSINESS There was no other business. ADJOURN The meeting adjourned at 3:41 p.m. ATTEST: Dana Brown - Davis, Council Clerk Jill Nixon, Minutes Transcription WHATCOM COUNTY COUNCIL WHATCOM COUNTY, WASHINGTON Rud Browne, Acting Committee Chair Planning and Development Committee, 8/5/2014, Page 3