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Council hears options for parks funding; property tax levy would require voter approval
Summary
City staff outlined options to fund a new parks department, including property tax levies, park districts, and service areas; staff said property tax increases would require voter approval and presented revenue estimates tied to example levy rates.
City staff presented multiple options to finance parks and recreation services on Sept. 2 and told the City Council that any dedicated property-tax levy would have to be approved by voters.
"Sales tax cannot be levied for parks and revenue per the RCW," the revenue specialist said, outlining legal limits and local funding options. Staff described current local revenue sources (event sponsorships, grants and facility rentals) and potential new sources: property-tax levies, park districts, park and recreation service areas, bonds, naming rights and capital fundraisers.
Staff said the city currently collects about $0.71 in city property tax (per $1,000 of assessed value). Using a half-million-dollar home as an example, staff presented hypothetical levy increments: an increase of about $0.17 per $1,000 could generate an estimated $9.6 million over six years; $0.32 per $1,000 could generate about $18 million in six years; an intermediate 22-cent levy would generate roughly $12 million over six years. Staff cautioned the council that levy limits are constrained by the combined taxing authority of fire and library districts and that the city—annot exceed the statutory caps (the city—ap is about $1.60 per $1,000 in the examples provided).
The presenters described differences between financing tools: park districts are independent taxing entities with separate boards; park and recreation service areas can cover multiple jurisdictions and are created by the county; both types of levies typically last six years and have statutory rate limits.
Council members asked for a clearer project list tied to levy levels before deciding on support. Staff said a preliminary approach would allocate an example 20% of levy proceeds to operations and maintenance and direct the remainder to capital projects, but that a final project list and precise split would depend on the levy amount the council chose to pursue. Staff also said the city would continue pursuing grants, sponsorships and rentals regardless of a levy.
No vote or ordinance was taken; staff said they will prepare project-cost estimates and return with more detail during the budget process and at a council retreat.
