Taxes on dam no longer required; County looks ahead to next year's property values

CSKT will not match previous $1.2 million in

revenue requested by the commissioners

The Confederated Salish and Kootenai Tribes will not match previous funds collected by Lake County in lieu of property taxes next year. As the new owners of the Kerr Dam, which was put into a trust after the transferral of ownership, the CSKT debated whether or not to pay $1.2 million that Lake County has been accustomed to receiving for years. The $1.2 million was collected and paid by the previous owners of the dam, NorthWestern Energy, because they were required by law. CSKT is not required by law to pay property taxes on the Kerr Dam, which will soon be renamed. The CSKT decided they will not be paying the money in lieu of taxes.

Lake County commissioners asked the CSKT for their decision last spring in April, but the Tribal Council wasn’t ready to give a final answer.

“They were not ready to make a commitment,” Lake County Commissioner Gale Decker said.

CSKT Spokesperson Rob McDonald said the decision took weeks of discussion among the Tribal Council.

“This was [difficult] for Tribal leadership,” McDonald said. “They were fully aware of the anticipation of the decision.”

County commissioners requested the money from the Tribes and asked that they consider matching funds in April.

“We knew the dam purchase was imminent,” Decker said.

After the dam ownership was finalized in September, Decker and the commissioners asked the Tribal council to meet and discuss the future.

On Oct. 8, the Tribal council met with the commissioners and informed them of their decision to not pay the money, Decker said.

The meeting lasted an hour.

The CSKT released a statement after the meeting with the headline, “New CSKT Business Requires Discipline.” In the statement, CSKT leadership addressed their reasoning: “...The Tribal Council weighed many important factors related to the successful purchase of the hydroelectric facility formerly called Kerr Dam. This investment marks uncharted territory in the business world for CSKT, and like any new business owner, CSKT remains cautious in committing financial resources in a depressed energy market.”

Leaders believe it is certain that Lake County will feel the impact of lost of revenue.

In the previous years, the money was used for the schools in Lake County.

Decker said that next year’s budget has some question marks along with the loss of revenue. Even so, Decker said he was not surprised by the Tribal Council’s decision.

“This is a new journey for the tribes,” Decker said. “They’re going to start paying bills, and they will be unsure of their profits. They aren’t going to know what they can or cannot spend [at the beginning of the ownership].”

Surprised or not, Decker said he was disappointed.

“They are the biggest taxpayers in the county, so it will have an impact,” he said.

Decker said that financial consequences will not arrive until next summer, when the county formulates a new fiscal budget for the schools, public services, and other projects under the authority of the Lake County commissioners.

Last year, Lake County property was reappraised by the Department of Revenue and posted a 10-percent decrease in value. Decker said any new possible taxes will be dictated by property values, an unknown that won’t be known until next year, when the Department of Revenue finishes its two-year reappraisals.

“Usually if property values go down, taxes go up.” Decker said. “Our biggest concern is to let people know.”

Decker said although the written notice was not a direct reaction to the Tribes’ decision, the commissioners’ statement hopes to address new tax concerns.

“Lake County prepares the annual budget thereby deciding the number of mills needed to collect to (sic) bring in the revenues necessary to provide county services,” the statement said. “Some examples of these services are Public Safety, Roads and Elections.”

With new appraisals scheduled to end this year and the beginning of 2016, Decker said the budget for the county is dependent on those values. The 10-percent decrease in property value could be more of a correction to the market, Decker said.

“We found out that Lake Shore property was a little overvalued. After the reappraisal, I think [the value] was pulled back in line. As a result, agricultural land was undervalued,” he said.

For these reasons, Decker is hesitant to say what will happen with the loss of revenue the county was hoping to receive. “There are so many parts to getting the budget together,” he said. “We won’t know until next June.”

For the time being, Lake County commissioners will be examining their options concerning the lost revenue. As for the Tribal Council, they have agreed to meet with the commissioners on a semi-regular basis.