Sequim finance director recommends 1% levy increase; requests $1.92 million certified for 2026

Sue Hagener, Sequim’s finance director, told the mayor and council the city is seeking certification of a $1,920,000 property tax levy for 2026 and recommended the council approve the 1% allowable levy increase.

Hagener said property taxes “are just 1 piece that make a healthy mix of revenues that support general governmental services,” noting sales tax, utility tax and property tax together fund much of the general fund. She flagged the city’s requested certified levy of $1,920,000 as slightly larger than the slide estimate of $1,907,000 because of late county-provided updates on construction and refunds.

Using a $300,000 home as an example, Hagener said the total 2025 tax bill was about $2,411 and the city’s share of that bill was approximately $279, down roughly $5 from 2024. She cautioned that the city controls only its portion of the total bill and that an individual property owner’s tax change depends primarily on their assessed value and actions by other taxing districts in Clallam County.

Hagener reviewed Sequim’s certified levy history since 2006 and explained growth limits set by a 2001 voter initiative that restrict most jurisdictions to a 1% per-year levy increase plus new construction. She said the limitation “does not keep up with inflation” (citing about 3% CPI in 2025) and outlined assessed-value trends, noting the city officially exceeded $1 billion in assessed value in 2019 and that the current certified assessed value exceeds $2,100,000,000, an increase she characterized as roughly 3–5% year over year with about $27,000,000 attributable to new construction.

On the calculation for 2026, Hagener said the city started with the 2025 levy of $1,866,000, added the 1% allowable increase and new-construction receipts to reach an allowable levy of $1,915,000, and is certifying $1,920,000 with the county. She presented the estimated levy rate calculation: dividing the estimated levy request ($1,915,000) by the city’s estimated assessed value (2,104,000,000) and multiplying by 1,000 to arrive at 0.9099613.

Hagener closed by recommending council approval of the 1% allowable levy increase so the city has funds to meet council goals and community needs. The transcript records the presentation and recommendation but does not record a council motion or vote on the levy.