Levy Lid Lift: Frequently Asked Questions
The Port of South Whidbey is asking voters to consider a 6-cent levy lid lift on the Nov. 3 General Election ballot. Below are answers to frequently asked questions about the measure. Additional questions may be added as they arise.
What’s on the ballot?
The Port of South Whidbey is asking voters to consider a 6-cent levy lid lift. Funding would help preserve community assets, address growing maintenance needs and provide local matching funds for state and federal grants.
What does the Port do?
The Port serves approximately 16,000 residents and businesses throughout South Whidbey Island, including Freeland, Clinton and Langley.
It manages a working harbor, public boat launches and waterfront parks, commuter parking for the Clinton/Mukilteo ferry, and the Whidbey Island Fairgrounds & Events Center. The Port also supports economic development and local small businesses.
Why is the Port asking for this?
Under Washington law, rising property values do not automatically result in proportionally more property tax revenue for the Port. As a result, the Port’s levy rate has gradually declined while the cost of maintaining public facilities has continued to rise.
The proposed 6-cent increase would restore the levy to approximately its 2017 rate and provide additional funding to preserve aging facilities and provide matching funds required for many state and federal grants.
What would the additional funding support?
Funding would help preserve community facilities and support projects such as:
- Preservation of the Whidbey Island Fairgrounds & Events Center
- ADA improvements
- Harbor float, gangway and marina improvements
- Possession Beach boat ramp
- Infrastructure for a future passenger-only ferry facility in Clinton
- Programs supporting small businesses and entrepreneurs
Local funding would also provide matching funds needed to compete for state and federal grants.
What has the Port done to address the funding gap?
The Port has taken several steps to manage rising costs and increase other sources of revenue. Staffing has been reduced by 25% through attrition, leaving seven full-time employees. Rental rates at the Fairgrounds and event fees have each been increased by 10%, while Harbor rates have increased by 18%.
The Port has also deferred some capital projects that require local matching funds.
Why aren’t the regular 1% increases enough?
Growth in the Port’s regular property tax revenue is generally limited to 1% per year, plus revenue associated with new construction. That limit applies to the amount of property tax revenue the Port collects, not to its tax rate.
As property values have risen, the Port’s levy rate has gradually declined. At the same time, the costs of maintaining facilities and providing services have continued to increase.
Why doesn’t the Port use other revenue, such as user fees or grants, to cover these costs?
The Port collects user fees and other revenue from its facilities, but those sources do not fully cover operating and maintenance costs. Some facilities also have limitations on how much revenue they can generate, including the Harbor’s 48-slip capacity and restrictions on uses at the Fairgrounds.
The Port has also pursued outside funding and has secured more than $3.2 million in grants. Some grants require the Port to provide local matching funds before projects can move forward.
How is the Port funded, and what would this cost?
The Port receives no funding from Island County and is funded primarily through user fees and its voter-approved property tax levy. The Port’s current levy rate is approximately $0.11 per $1,000 of assessed property value.
The proposed increase is $0.06 per $1,000 of assessed value. For the average South Whidbey home, assessed at $866,000, that would be approximately $4.33 per month, or $52 per year.
To estimate the increase for your property, divide its assessed value by 1,000 and multiply the result by 0.06. The levy applies at the same rate to taxable residential and commercial property throughout the Port district.
Is there a limit on a port district’s property tax levy?
Yes. State law limits the regular property tax levy rate for port districts. The Port’s current rate is approximately $0.11 per $1,000 of assessed value, and the proposed increase would add $0.06 per $1,000.
The proposed rate would remain below the maximum levy rate allowed for port districts.
How does the senior property tax exemption apply?
Washington has property tax relief programs for qualifying seniors, people with disabilities and disabled veterans. Eligibility and the amount of tax relief depend on factors including household income.
For information about eligibility or how the program applies to your property, contact the Island County Assessor’s Office at 360-679-7303 or assessoremail@islandcountywa.gov.
Need More Information?
Please contact Jim Pivarnik, Executive Director, with questions at execdir@portofsouthwhidbey.com or at 360-331-5494.