2024 Primary Voters’ Pamphlet
Everett residents could see 2024 Primary Ballots in the mail as early as today. One of the biggest decisions will be Everett’s Proposition 1, which is listed as a Levy Lid Lift for Public Safety and Essential Public Services.
We do our best to break it down into easy-to-understand, plain English so you can make an informed vote.
What is a Levy Lid Lift?
A levy is the amount of tax that can be collected by a taxing district on property tax. In 2001, the state passed a law limiting tax lifts to a maximum of 1% a year. So if you paid $2000 in tax one year, the max for the next year would be $2,020 (assuming your property value stayed the same).
In times of need, a taxing district can go to voters and ask for a levy lid lift to go beyond the 1% cap. Do note that the city only collects $0.18 of every dollar you pay on property tax ($0.68 goes to schools, and $0.14 goes to other things like the county, the port, and the RTA).
Why Does the City of Everett Need to Increase Property Taxes?
To be blunt, the city is projected to operate at a deficit. It is expected to lose $12.6 million in 2025 and over $30 million a year by 2029. Here’s a chart displaying the deficit if things stay the same:
City of Everett Budget Deficit Expected to Grow Rapidly
Why Doesn’t the City Just Cut Expenses?
The city will say they have and the critics will say they haven’t enough. Let’s take a deeper look.
Things the city already cut to address the deficit:
- Voluntary separations in 2019 & 2020: $3.33 million
- Cutting nearly all recreation & the Bookmobile: $1 million/ year saved
- Ideas from staff & community: $285k/ year saved
- Partnering on programs like the Gipson Center, Jetty Island, the flower program: Nearly $1 million/ year saved
- Closing the Swim Center: $500k-$750k/ year saved
- Eliminating the Animal Farm at Forest Park
- Changes to staff benefits: $2.42 million/ year saved
- Efficiency improvements that affected staff positions, resources, automation, and capital projects.
Critics will say they haven’t cut enough. Recently, the city has been increasing spending. Since 2021, the marketing communications budget has increased 164%, HR has gone up 52%, and the mayor’s office increased 64%.
To address the budget deficit, the city also increased revenues through a utility tax increase, implementing false alarm fees, car tab fees, business license fees, inspection fees, and credit card fees.
The reality is that the budget will go up over time to accommodate the population growth and the marketing/com and HR teams are small compared to bigger departments like the police or fire.
All the past cuts and fee increases are already reflected in the chart above, showing there still is an expected budget deficit.
Would Annexing the Library or Fire Services Help?
The short answer is that they would help, but it wouldn’t be enough. Everett is unique in that it has its own library system and its own Fire Department. The city could have the Everett Library system join Sno-Isle and the Fire Department could join South County Fire. The city had explored this option but, ultimately, decided to keep those services in-house for now.
The library employees seemed opposed to the idea of annexation at first, then became more receptive to the idea. Moving the library off Everett’s books would save around $6.4 million a year, but the tax burden for voters would shift to paying Sno-Isle 32 cents per $1,000 assessed value, or $160 for a $500,000 home.
Annexing to South County Fire would merely shift the tax collection from Everett to a different taxing district. The cost for a resident in the South County Fire taxing district is about $71.64 a month for a 2,000 square foot house, or $860 a year.
If Approved, What is it Going to Cost Me?
If approved, Prop 1 would authorize a maximum regular property tax rate in 2025 of not more than $2.19/$1,000 assessed value. This would be an additional $28 a month, or $336 a year on a house valued at $500k over what you pay now (currently $1.52/$1000).
If your house was valued at $700k for tax purposes, you’d be looking at $469 increased annual tax, or $39 more a month.
A lid lift is a one-time, permanent increase in the property tax rate. A 1% increase is allowed with or without the lid lift.
The pamphlet states the incremental increase in 2025 would fund essential public services, including park maintenance, libraries, animal shelter, street maintenance, neighborhood groups, social services, the arts, events, and public safety.
The 2025 maximum levy amount would be the basis for calculating subsequent levy limits. Qualifying seniors, veterans, and others would be exempt (ch. 84.36 RCW).
Hidden in the property tax conversation are housing values. House values can go up or down and can affect the taxes you pay and the city receives. In 2023, house values dropped an average of 6.6% but had been going up every year for a number of years before 2023. Unfortunately, house values are not something the city or you have control over (the Snohomish County Assessor sets the values), but it does affect the budget.
The Choice You Must Make:
Proposition 1 really comes down to how much you value the services Everett currently provides and whether you can afford the increase in taxes.
If it doesn’t pass, the city will still need to make cuts to address the $12.6 million deficit next year and bigger cuts in future years. Annexing the Library and Fire would free up some of the budget for the City, but those costs would ultimately still return to you from a different taxing district.
If it does pass, the city will be in good shape. It may allow the city to restore some programs it had cut in the past, and it should be able to avoid a deficit in the future.
The city council did look at lower levy lid increases, but the lower costs didn’t stop the bleeding, and ultimately, the city needs to address the budget crisis now.
More Information About Prop 1:
FAQs from the city after meeting with the public: view PDF
From the city side of things: www.everettwa.gov/prop1
From the vote no group: https://www.rejectprop1.com/
From the vote yes group: https://liftupeverett.com/
July 18, 2024
Everett Government, Everett Fire