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Everett residents could see ballots for the 2024 primary election in the mail today. One of the biggest decisions will be Everett’s Proposal 1that as Levy Lid Lift for public safety and essential public services.

We do our best to translate the information 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 a taxing district can collect on property taxes. In 2001, the state passed a law that limited tax increases to a maximum of 1% per year. So if you paid $2,000 in taxes one year, the maximum amount you’ll pay the next year is $2,020 (assuming your property value stays the same).

In times of need, A tax district can go to voters and request an increase in the tax cap to exceed the 1% cap.. Please note that the city only collects $0.18 of every dollar you pay in property taxes ($0.68 goes to schools and $0.14 goes to other entities such as the county, port, and RTA).

Why does the city of Everett need to raise property taxes?

To be clear, the city is expected to run a deficit. It is expected to lose $12.6 million in 2025 and over $30 million per year through 2029. Here is a chart showing the deficit if things stay the same:

City of Everett budget deficit expected to rise rapidly

Why doesn’t the city just cut spending?

The city will say it has enough, and the critics will say it hasn’t enough. Let’s take a closer look.

To combat the deficit, the city has already made the following cuts:

• Voluntary separations in 2019 and 2020: $3.33 million
• Elimination of almost all recreational activities and the bookmobile: $1 million saved per year
• Ideas from employees and community: $285,000 saved per year
• Partnerships in programs such as the Gipson Center, Jetty Island and the Flower Program: Savings of nearly $1 million per year
• Closing the aquatics center: $500,000-750,000 saved per year
• Removal of the Animal Farm in Forest Park
• Changes in employee benefits: $2.42 million saved per year
• Efficiency improvements impacting staff positions, resources, automation and capital projects.

Critics will say they did not cut enough. Recently, the city has increased its spending. Since 2021, the marketing communications budget has increased by 164%, the personnel budget has increased by 52%, and the mayor’s office has increased by 64%.

To combat the budget deficit, the city also increased revenue by raising property taxes for utility services and by imposing fees for false alarms, license plates, business licenses, inspections and credit card fees.

However, all cuts and fee increases are taken into account in the graph above and show the expected budget deficit.

Would it be helpful to integrate the library or the fire department?

The short answer is they would help, but it wouldn’t be enough. Everett is unique in that it has its own library system and fire department. The city could connect Everett’s library system to Sno-Isle and the fire department to the South County Fire Department. The city explored this option but ultimately decided to keep those services in-house for now.

Library officials initially seemed opposed to the idea of ​​incorporation, but then became more open-minded. Moving the library off Everett’s books would save about $6.4 million a year, but the tax burden on voters would shift to 32 cents per $1,000 of assessed value, or $160 for a $500,000 home.

Incorporation into South County Fire would simply shift Everett’s tax revenue to another taxing district. The cost to a resident of the South County Fire taxing district is about $71.64 per month for a 2,000 square foot home, or $860 per year.

If it is approved, how much will it cost me?

If approved, Proposition 1 would authorize a maximum regular property tax rate in 2025 of no more than $2.19/$1,000 of assessed value. This would be an additional $28 per month or $336 per year for a $500,000 home. above what you pay now (currently $1.52/$1,000).

If your home was valued at $700,000 for tax purposes, you would face an annual tax increase of $469, or $39 more per month.

A cap increase is a one-time, permanent increase in the property tax rate. An increase of 1% is permitted with or without a cap increase.

The brochure says the incremental increase in 2025 would fund essential public services, including park maintenance, libraries, animal shelters, street maintenance, neighborhood groups, social services, arts, events and public safety.

The maximum tax amount for 2025 would be the basis for calculating subsequent tax limits. Eligible retirees, veterans and others would be exempt from the tax (Chapter 84.36 RCW).

Also hidden in the conversation about property taxes are property values. Property values ​​can rise or fall, affecting the taxes you pay and the city receives. In 2023, property values ​​fell an average of 6.6%, but had risen every year for several years prior to 2023. Unfortunately, neither the city nor you have any control over property values ​​(the Snohomish County Assessor sets the values), but they do affect the budget.

The choice you have to make:

With Proposition 1, it really comes down to how much you value the services Everett currently provides and whether you can afford the tax increase.

If it doesn’t go throughthe city still needs to make cuts to cover next year’s $12.6 million deficit, and even bigger cuts are needed in subsequent years. Adding the library and fire department would free up some of the city’s budget, but those costs would still ultimately come back to you from another taxing district.

If it goes throughthe city will be in good shape. The city may be able to restore some programs it had cut in the past, and it should be able to avoid a deficit in the future.

While the City Council has considered raising the tax cap, the cost reduction has not stopped costs from rising, and ultimately the City must now address the budget crisis.

More information on Prop 1:

From a city perspective: www.everettwa.gov/prop1
From the No group: https://www.rejectprop1.com/