Howard Hopkins Memorial Pool faces budget shortfall after new levy fails to be collected

LEAVENWORTH – The Leavenworth City Council approved an interfund loan to address a shortfall of approximately $200,000 for the Howard Hopkins Memorial Pool 2025 budget year. 

The shortfall is a result of the Chelan County Assessor’s Office failure to include the new Upper Valley Parks and Recreation Service Area (PRSA) levy of 15 cents per $1,000 of assessed value on properties when preparing 2025 tax bills. The new levy was voter approved last fall to replace the existing levy that was set to expire at the end of 2024. 

Instead, the county assessor added a one percent increase to last year’s collection of almost 7 cents per $1,000 of assessed value, a standard annual increase for existing levies. As a result, approximately $200,000 was collected, rather than the $410,000 that was expected from the new, voter-approved levy.

“We have a budget that includes over $200,000 in capital improvements that need to happen before we can even open the pool,” said City of Leavenworth Finance Director Chantell Steiner.

During the May 27 city council meeting, Chelan County Assessor’s Office Levy Administrator Stacy Wuolle stated that the mistake was “not so much of a levy error” but a “gray area.”

“It doesn’t seem like a gray area to me,” said City Councilmember Anne Hessburg.

According to Wuolle, the PRSA Board submitted an unnecessary resolution that referred to the one percent increase along with the correct paperwork, such as the ballot measure, verification that it passed, and levy certification. Wuolle had acted only on the resolution.

“This is where I feel bad that I didn't reach out and say, ‘Hey, we've got a resolution here on top of your levy certification, which is it that the district is actually trying to levy for?’” said Wuolle, noting that the county was not required to reach out.

In an email regarding forms for the tax year 2025, which was shared at the meeting, Wuolle had instructed districts with recently passed ballot measures to “include the information when returning your resolution and levy certification. Your ballot measure will replace your resolution the first year.” Steiner had interpreted the language to include both documents.

“It says right on her letter…’Your ballot measure will replace your resolution.’ It doesn't say, ‘Don't submit your resolution,’” said Steiner.

To correct the error, the remaining amount will have to be collected in equal amounts over the next three years, so as not to exceed the maximum tax rate allowed, according to RCW 84.52.085.  Wuolle estimated the rate with the correction would be around 17 cents per $1,000 assessed value for taxpayers the next two years, then 16 cents the third year.

“Is it going to be a massive impact to people? Probably not…We could just be talking about $20 more next year. What the taxpayers don’t know is that they didn’t see the increase this year like they were supposed to,” said Steiner.

Steiner told the city council that the PRSA would likely be OK without the immediate funds by prioritizing projects and utilizing its reserve. However, it would likely see the need in a few months. 

Chelan County Assessor Wes Cornelius suggested that the council request a loan from the Chelan County Board of Commissioners to make them “whole” until the taxes were recovered. While council members wanted the county to take responsibility, some agreed that approaching the county may take more time and cause unnecessary tension. However, the conversation was left open.

“It seems to me the only reason to go to the county and ask for the funds is for some sense of accountability or fairness. But really, it's more tedious with less control over the outcome, and we're going to be waiting,” said City Councilmember Mike Bedard.

To secure funding in the meantime, the Leavenworth City Council approved a three-year interfund loan from the General Fund to the Pool Fund, allowing the PRSA to access interest-free funds as needed. According to Steiner, the General Fund has $1.4 million in reserve.

Unrelated to the assessor, the Leavenworth City Council also approved changes to the PRSA interlocal agreement between the city and county, which requires a “Chumstick community” representative on the governing board. The change was recommended by the PRSA, reasoning that there is no longer Chumstick Community Council and the vacant position has been difficult to fill. The proposition changes the Chumstick Highway position to an "at-large type,” opening it to anyone living within the service area and outside of city limits, while still remaining open to a Chumstick Highway representative.

The board currently consists of one county commissioner, two Leavenworth City Council members, and a representative each from the Peshastin Community Council, Cascade School District Board, and a Chumstick Highway resident. The changes will be presented for approval to the Peshastin Community Council, CSD Board, and Chelan County Commissioners.

Taylor Caldwell: 509-433-7276 or taylor@ward.media