PORT HADLOCK — The state Court of Appeals has ruled in favor of the Jefferson County Public Utility District, stating that the PUD has the right to levy taxes on city residents for use in regional water planning.
“We are happy about this because we have already spent $200,000 in lawyers’ fees that comes from the taxpayers,” PUD Commissioner Wayne King said
“This is for the future, people in 50 years will understand how valuable this is.”
The suit was filed in July 2009 by Port Townsend residents Ted Shoulberg and Charles Haniford, who claimed that the PUD unlawfully levied a tax, making property owners within the city limit pay for water service they already receive from the city government.
In October 2010, Clallam County Superior Court Judge Brooke Taylor ruled for the PUD, stating that while a utility district is prohibited from levying taxes for the purchase of private utilities that compete with municipal utilities that offer the same service, it is authorized to make purchases that conserve water and resources.
On Monday, Shoulberg said he might again appeal the decision.
“I still think my position is correct, that the PUD cannot by law tax Port Townsend people who are already paying a tax for water services.”
The class-action suit could have resulted in a payout to residents.
The Court of Appeals ruling, issued last Friday, said the lawsuit sought to protect the taxpayers “from paying twice for the same utility service, and we conclude that is not happening here.
“The [PUD] contends it may levy taxes on city residents to pay for other expenses such as regional water planning (and) also argues that the owners (Shoulberg and Haniford ) failed to comply with procedural requirements before bringing their action.”
The court ruled that the PUD did not violate state law that prohibits one utility from “invading” jurisdictions of another.
The PUD’s tax levy amounts to 10.226 cents per $1,000 of assessed valuation, which has enabled the PUD to conserve water resources to meet present and future needs, according to Commissioner Barney Burke.
It provides about 3,700 water and/or septic connections and will provide electrical service after it finishes the purchase of East Jefferson’s Puget Sound Energy franchise in 2013.
When asked about the cost of the PUD’s legal bill as a taxpayer cost, Shoulberg said “they could have saved all that money if they had just given all the money back to the taxpayers when we first filed the suit.”
“We have two courts, the state auditor and the attorney general saying we don’t have to [return the money],” said PUD Manager Jim Parker.
“[Shoulberg] is free to file another appeal, but the only place he can go is the state Supreme Court, and given [the justices’] track record, it’s unlikely they would agree to hear it.”
Jefferson County Reporter Charlie Bermant can be reached at 360-385-2335 or at charlie.bermant@peninsuladailynews.com.
