July 20 - 26, 2023
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IN THIS
ISSUE
Jail measure on November ballot, page 3
Petrogas could owe Whatcom County $15 million in taxes
Birch Bay sign gets new home, page 7
Birch Bay inspires children’s book, page 16
PRSRT STD U. S. Postage PAID Permit NO. 87 Blaine, WA 98230
Ragnar relay race starts at Peace Arch
By Ian Haupt
(See Petrogas, page 2)
s Ragnar Northwest Passage races set out from Peace Arch Historical State Park on July 14 for the 200-mile, 12-leg running relay race from Blaine to Langley on south Whidbey Island. Photo by Ian Haupt
Blaine’s 2023 general fund above projections Budget trends show $200,000 deficit opposed to $1 million, finance director says By Grace McCarthy The city of Blaine is on track to use significantly fewer reserves after losing four staff positions that haven’t been refilled and improving sales tax revenue. City finance director Daniel Heverling said the city will spend about $150,000 of its reserves, instead of the $950,000 it anticipated using for the 2023 budget, if midway budget trends continue through the end of the year. This will allow the city to keep $700,000 it would have spent of its $4 million reserve. City staff approved a conservative 2023 budget last fall that would have resulted in a nearly $1 million deficit
in the general fund. The deficit came as the city’s revenue, impacted by the fallout of the U.S./Canada border closure, didn’t keep pace with high inflation and increased staff salaries. The city also no longer receives the Covid-19 stimulus funds that kept the budget balanced during the pandemic. “Long term, we either need to bring more revenue to the city or there’s got to be a way to cut expenses,” Heverling said. The general fund pays for daily government operations and is often the most difficult to balance because it relies (See Budget, page 2)
INSIDE
The Washington Supreme Court upheld an appellate court decision July 12 that could require Petrogas Pacific LLC to pay $15 million in taxes for Whatcom County. Whatcom County assessor Rebecca Xczar told The Northern Light in an email that the ruling means Petrogas will now owe tax on the difference in value plus interest of the reduced amount it paid on property tax from 2016 to 2019. This will benefit all property owners in Whatcom County next year who have been paying more tax because Petrogas has been paying a reduced amount, Xczar said. “I am very pleased to see this come to a final resolution,” Xczar said. “As there are still four more years of appeals outstanding, I am hopeful Petrogas will withdraw all or most of those appeals, as the issues raised are similar.” The Washington State Board of Tax Appeals (BTA) grouped the appeals for 2016, 2017 and 2018 together to be heard as one case. The case was finally heard in 2021 and the BTA decided in favor of the assessor’s office for the 2017 and 2018 values and reduced the assessor’s value for 2016. Petrogas appealed this decision, and it went to the Court of Appeals in 2022. The appellate court upheld BTA’s decision, and the state supreme court upheld the court’s decision following another Petrogas appeal. AltaGas, the parent company of Petrogas, still has four more years of appeals outstanding and did not comment directly on the decision. “We are aware of the ruling and are reviewing it at this time,” an AltaGas spokesperson told The Northern Light in an email. Petrogas Pacific LLC and Petrogas West LLC own and operate a liquefied petroleum gas (LPG) terminal and wharf at Cherry Point near Ferndale. Petrogas acquired the terminal from Chevron for $242 million in May 2014 and the wharf from Intalco Aluminum for $122 million in September 2016, according to the lawsuit. The terminal is connected to two local
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