Shelter Cove board approves putting special utilities tax increase on June ballot after hour-long hearing

The Resort Improvement District Board of Directors voted Tuesday to place Ordinance No. 76, a proposed additional special utilities improvement and operations tax, on the June 2, 2026 consolidated ballot. The measure would raise the district's special utilities assessment from $80 per taxable parcel to $140, an increase of $60 per year, and is intended to fund water, wastewater and electrical system projects.

The vote followed a public hearing that ran more than two hours and drew more than a dozen speakers for and against the measure. Chris (general manager) summarized the ordinance and said the additional revenue would be aimed at urgent water projects, including replacement or retrofitting of four aging water storage tanks and upgrades to the water treatment plant. Chris said the $60-per-parcel increase is expected to generate about $230,000 in new annual revenue.

Why it matters: The district's utilities fee has not been increased since the charge was established in 1981, and board members and staff said rising costs, earthquake damage to tanks and limited grant match dollars make new revenue necessary to maintain service and avoid larger rate increases for customers.

Public comment was sharply divided. Supporters said the modest $60 annual increase (about $5 per month) is necessary to maintain infrastructure and protect property values; opponents, many of them absentee lot owners, said the tax is unfair because some parcels do not currently take service and because ballot eligibility is limited to registered Shelter Cove voters. Several speakers asked whether parcel owners who do not live in Shelter Cove would be required to pay and whether the district could structure the charge so only active utility customers pay; staff and the board said the tax is levied on every taxable parcel in the district if voters approve it and that the measure would be decided by registered voters in Shelter Cove at the consolidated election.

Board members emphasized the tax would go to ballot and then be decided by voters. Director Wes Bonheide thanked residents for submitting more than 50 letters of opposition and said the high volume of comment showed the community's engagement. Director Mike [last name not specified in transcript] and others noted that the board has discussed the tax over multiple meetings and that staff have explored grants, but grant programs often require local matching funds the district lacks.

Actions and next steps: The board adopted Resolution 25-06 to place the special tax measure on the ballot and approved Ordinance 76 in a roll-call vote; the measure will be consolidated with the district election on June 2, 2026. If a majority of registered Shelter Cove voters approve the measure when it appears on the ballot, the extra levy would be collected annually on taxable parcels in Resort Improvement District No. 1.

Board and staff said they will hold a series of town-hall meetings ahead of the election to answer questions about parcel eligibility, how the revenue would be budgeted, and what projects will be prioritized. Staff advised residents to read the packet materials and the district website for project lists, grant information and the FY-end budget report.

Ending: The board closed the public hearing after hearing comments from both homeowners and absentee parcel owners and approved putting the question before registered Shelter Cove voters. The measure will take effect (if approved by voters) according to procedures set by the county elections office and district ordinance.