At the August 5, 2024 Ferry Target Report meeting, in addition to the recommendation from Public Works Director Grace Kane to implement service cuts, there was a disagreeament between Ferry Captain Rachel Rowe and Kane on the use of Federal Ferry Boat Program grant money. Rowe stated it was going to be used for 2023 and 2024 Ops expenses and Kane stated any additional funds received were going to be used for Capital projects like the parking lot. What money?
According to a source in the Federal Ferry Boat Program, on June 26, 2023, Guemes Island ferry was allocated $350,740 from the Federal Ferry Boat Program (FBP). A decision made by Public Works was to use these funds for Operations and Maintenance expenses vs. running the risk of losing them (a new benefit of the FBP funding rules).
The source also confirmed that on March 29, 2024, a request was made for an additional $286,890 to be allocated to the Skagit County Ferry for Ops expenses. These funds were allocated to the county on April 10, 2024. I confirmed with the county that in this case, Rowe was correct that the funds were allocated for O&M expenses.
Why were these funds omitted from on Table 1 – Revenue Target Calculation?
The answer is, when Resolution 20230152 was signed into effect on July 27, 2023, there is no mention of FBP as a funding source, nor did Exhibit A include language for ANY additional sources of tax revenue (like the FBP funding) to be subtracted from O&M Expenditures.
Resolution 20230152 Exhibit A:
”Other tax revenue:
Contributions from the Motor Vehicle Fuel Tax (MFVT) (SIC) attributable to the ferry system, and the Washington State Department of Transportation (WSDOT) deficit reimbursement will be applied before the 65% revenue target is calculated.”
In the 2024 Revenue Target report, the $350,740 and the $286,890 allocated in FBP funds for the Guemes Island ferry are omitted as Revenue from the target – unlike the MVFT and the WSDOT Deficit Reimbursement. It was not calculated in the revenue target calculation because they didn’t have to according to Resolution 20230152.
Omitting the ability to include any additional tax revenue contributions in the resolution is particularly interesting since they knew they were allocated the FBP funds when the resolution was created in 2023. They also knew the language would prevent ANY other source of revenue to be included in the fare revenue target calculation.
What does that mean for other ancillary revenue they are looking to create? Parking lot fees? Your personal gift of $1 million to the Guemes Island Ferry? Future subsidies for the county road fund.
According to the resolution as it stands, the only revenue to be included in the calculus for the 65% fare recovery model is what is listed above.
Where did the FBP money go? My answer is it went to subsidize the county road fund, but I bet the county would say it was used to reduce the Road Fund subsidy to the ferry. Tomatoe Tomato.
The Skagit County Board of Commissioners need to credit the ferry any and all ferry revenue in their target rate calculus before they implement a massive 30% rate hike. They also need to
take a closer look into why projected expenditures are nearly $2 million more than 2022. How is that possible?
– Cindy Kamp
Please write to our County Commissioners.