by Joseph J Cohen
San Juan Island
An insurance agent once said to me: No one has a lease on life (he was right). All humans expire at some point.
In the business world – businesses fail for a variety of reasons. One of which is the relevance of what they offer in the marketplace.
The SJC Land Bank operates at the pleasure of its constituents – with a broad mandate. It enjoys 12-year lifespans renewable by its owners (citizens).
A major part of the LB mandate is “stewardship in perpetuity” of the assets (land and waters) that it owns.
For the past three decades the LB has both acquired and stewarded the many properties now in its portfolio. In recent years the stewardship component of LB funds has increased dramatically – approaching 50% (estimate) of annual revenues.
My question and suggestion to the Commissioners:
If you assess and project ahead 12 years, what level of funds will be required at that time to ensure that stewardship needs of LB assets will be met in perpetuity with high probability?
And given that assessment – what level of annual contributions to the Stewardship Fund will be required year by year to achieve a fund that, by 2038, will be sufficient to steward Land Bank preserves in perpetuity ?
Of course, at the end of 2038, voters may well decide to continue the program to acquire more lands for another 12 years. But by planning for the event in which renewal of the LB 1% tax doesn’t happen, we can be assured that our lands are taken care of in perpetuity regardless of the outcome.
I support and applaud the many successes the LB has achieved. I publicly support the renewal of the LB 1% excise tax.
My suggestion (request) is that the Commissioners commit to the citizens they will address the questions posed above – and report back with transparency the substance of those efforts.
My belief is that in doing so you will validate that the LB 1% tax is fully needed for the next 12 years – and a substantial portion (perhaps fully 50% or more of the LB revenue) will need to be allocated annually toward the Stewardship Fund. At the end of 12 years the fund balance will be approach $ 50M. Will a $ 50M fund at a 4% distribution rate providing $ 2,000,000 for stewardship purposes meet the future needs?
We can ill afford to wait five to seven years to find out the answers to these questions. The LB has a mandate to provide stewardship —in my opinion it is the top priority.
