For anyone who may have missed last night’s meeting between McCormick Woods
residents and city of Port Orchard officials, I will tack on at the
end of this post a “Property Tax and Franchise Comparison” prepared
by the city treasurer that answers the question:
What’ll it cost me?: Basically it’s a wash. City calculations
based on 2008 numbers, show that the owner of a $350,000 home who
as a county resident currently pays a total of $3,805.46 in taxes
and fees would pay a total of $3,798.55 as a resident of Port
Orchard. This does not include a storm water utility fee to be
introduced in 2009 (approximately $90 annually).
McWoods residents in Port Orchard would pay a city property tax,
which goes into the general fund and the city road fund, in
addition to their county property tax, but they would no longer
have to pay into the county road fund. And McCormick Woods
residents would no longer pay the 50 percent sewer surcharge they
now do as part of unincorporated Kitsap County, saving each
household an average of $300 per year. (“Who would pay for that
loss of revenue?” city resident Genevieve Hall asked me this
morning. My notes from the meeting show the difference would be
distributed among all city residents as a 10 percent increase in
sewer fees.)
Will my property taxes go up?: In a word, no, at least not as a
result of the annexation, according to Kitsap County Assessor Jim
Avery. “We look as the whole urban growth area as one for our
valuation purposes,” Avery said. Besides that, Avery pointed out,
assessed values are trending downward at this time.
Will the city pay for streetlights?: (McWoods residents
currently pay for their own streetlights in their dues.) The city
would pay for any streetlights on public roads within McCormick
Woods and The Ridge. Residents who live on private roads will
continue to pay for streetlights.
Will properties in McWoods be rezoned, and therefore subject to
a possible tax increase, as a result of updates in the city’s
comprehensive plan?: Because McWoods is a planned development, no
rezoning of properties within the annexation boundaries is expected
or planned, Mayor Lary Coppola said.
How is the city doing financially?: Port Orchard has a long
history of fiscal conservatism. Only within the last few years have
they started including return envelopes with their utility bills,
and city hall visitors must pay a penny a sheet for toilet paper if
they have to use the restroom. (I made up the toilet paper thing,
but it would be very much in the old PO spirit.) While the city
expects 8 percent less in sales tax revenue in 2009 as a result of
the economic downturn, it is also expecting to annex a considerable
amount of commercial property, including Fred Meyer, which could
offset the loss. The city’s budget is tight, and they will balance
it by making adjustments, but they are in better shape than most of
their neighbors (except Poulsbo), reported John Clauson, who chairs
the finance committee.
So what’s in it for Port Orchard?: City officials have said the
annexation, while it would provide increased property tax revenue
and a small amount of sales tax revenue, would financially be “a
wash” for the city. Six additional staff members would be needed to
provide services to the area. As a larger jurisdiction, however,
the city would be better eligible for state and federal grants and
other funding, Coppola said.
Aside from any financial incentives, city officials say, they
want McCormick Woods as part of the city because they see them as
an asset. Coppola, last night, noted that with its many retirees,
McWoods represents a new pool of potential representatives on the
city’s volunteer boards or as elected officials. Somebody out there
could even replace him, Coppola joked. He added that unincorporated
McWoods is a small fish in a big pond (he didn’t exactly put it
that way). As part of the city, however, they would be a big fish
in a smaller pond and have better representation in their local
government.
If this annexation fails, would Port Orchard try again by
initiating an annexation itself? This could happen in theory. One
method of annexation allows a city to initiate an annexation; then
residents in the area to be annexed must vote on it. Would Port
Orchard actually do this? probably not, said John Clauson. “Why
would we fund an election if you’ve just told us no?” he said. If
you choose not to, we’ll shake your hands and we’ll still be your
neighbors.”
Here’s the line item financial comparison.