Port Angeles opens 2026 revenue public hearing and continues property tax decision to Nov. 18
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Summary
City staff presented the revenue sources review required by state law and explained the mechanics of the 2026 property tax levy; council closed the revenue hearing, continued the property tax hearing to Nov. 18, and conducted the ordinance’s first reading.
City staff presented the statutorily required revenue sources presentation for the 2026 budget and opened the combined public hearing on revenue assumptions and the property tax levy. After public comment, council closed the revenue hearing and continued the property tax levy hearing to Nov. 18 for final action; council also read the ordinance levying regular ad valorem property taxes for collection in 2026 (first reading).
Director Carrizozo (with Manager West) explained revenue guidelines and restrictions under state law, the requirement to present a revenue sources public hearing, and the need to match restricted revenues to allowable expenditures. Staff emphasized a conservative approach to forecasting but said some categories have rebounded in 2025. The citywide preliminary revenue plan for 2026 (including planned use of reserves for capital projects) is approximately $188.9 million, driven in part by planned grant revenue for transportation projects and transfers to capital accounts.
On property tax specifics, staff explained state limits (a maximum levy equal to 1% of assessed valuation absent voter approval), levy rate bands and the implicit price deflator (IPD) mechanism. Staff reported preliminary assessed valuation estimates of about $3.3 billion (a roughly 2.9% increase over the prior year) and estimated a 2026 city levy rate near $1.59 per $1,000 of assessed valuation under the 1% increase option. Staff gave an illustrative homeowner example: a $300,000 home, using an estimated 2.9% assessed value increase and an estimated levy of $1.59 per $1,000, would pay roughly $490.83 in city property taxes in 2026, an increase of about $10.83 from 2025.
Public commenters raised budget and policy questions: James Taylor asked about the planned use of reserves and urged fiscal restraint; John Ralston objected to city purchase of additional real estate; Susie Blake requested that staff use the term “cannabis” rather than “marijuana” when describing industry tax revenues because of historic and racialized usage of the latter term.
The council closed the revenue sources hearing, continued the property tax public hearing to Nov. 18, and completed the first reading of the property tax levy ordinance. The continuance passed unanimously.
