Although a proposal to annex the Port Orchard Library into the Kitsap Regional Library district would not result in an increase in library taxes paid by property owners within city limits, it would give the city the option of increasing its levy rate, according to Kitsap County Assessor Jim Avery. For a detailed explanation, including comments from Avery, visit the Kitsap Caucus blog.

Chris Henry, South Kitsap/government reporter

The Port Orchard City Council on Tuesday will vote on an ordinance declaring substantial need to raise taxes up to one percent. In past years, the city has automatically been able to do so. But this year, an ordinance is necessary because of negative inflation and the fact Port Orchard’s population has increased beyond the threshold that triggers a vote in such a case.

Read the complete story here.

Also at the meeting, the council will issue proclamations recognizing November as Pancreatic Cancer Awareness Month and recognizing Deliah Rene Luke for spearheading the Paint the Town event in August.

I’ll be at the meeting. Comment here, or e-mail me with your questions for the council, chenry@kitsapsun.com.

Correction 8/10: This blog post incorrectly said the port’s levy collection rate per $1,000 of assessed property value has remained the same throughout its history. The port has never in its decades-long history sought a lid lift beyond annual increases allowed by law. But the collection rate has changed as the total value of assessed property has changed. The rate for 2009 is 14 cents per $1,000.

Port of Manchester to Hold Hearing on Proposed Taxing District

Public opinion sought, although matter is not subject to a vote.
By Chris Henry
chenry@kitsapsun.com
MANCHESTER
The Port of Manchester will hold a public hearing on Monday on a proposal to create a taxing district, called an Industrial Development District, within the Manchester Village Commercial Zone that would apply to all residents within port district boundaries. The meeting is at 6 p.m. at the Manchester Library.
The port would use revenue from the IDD to purchase property and retire debt.
Port commissioners had been considering a ballot measure for a levy lid lift. The current levy rate of just over 14 cents per $1,000 of assessed property value has never been adjusted since it was established decades ago, The port has never in its decades-long history sought a lid lift beyond annual increases allowed by law, said Alan Fletcher, port administrator.
Instead of the levy lid lift, the port’s board of commissioners chose to pursue an IDD, which would allow them to raise the levy rate up to 45 cents per $1,000 of assessed value for a period of up to six years. Forming an IDD does not require a vote.
Port commissioners estimate the amount they would need to collect from property owners for the proposed land purchase would be between 20 to 25 cents per $1,000 of assessed value above the current levy rate for a period of six years. Collection would start in 2010.
The port will use money from the IDD to promote its goal of furthering recreational opportunities and economic development in Manchester. One potential use for the land to be purchased is to expand the library and add facilities that could be used for recreation and meeting space.
Although a vote is not needed to form an IDD, port commissioners want to hear from the public about the proposal, said Fletcher. The port wants to avoid the debacle incurred by the Port of Bremerton, when that port’s board of commissioners formed a six-year IDD for taxes collected beginning in 2007 to rebuild and expand its marina. The action was not well publicized in advance and came as a surprise to many who ended up paying the tax.
IDD’s are powerful, said Fletcher, but they are temporary and limited in that the money cannot be used for ongoing maintenance.
Besides purchasing land, the port will use a portion of IDD revenue to retire its share of debt on property it recently purchased to expand parking at the marina. The total cost, $650,000, was 75 percent funded through a grant from the state’s Recreation Conservation Office. The port must provide 25 percent in matching funds or in-kind services such as volunteer labor. Revenue from the IDD special levy would allow the port to pay off the 25 percent match.
Written testimony on the proposed IDD can be delivered before the hearing to Contract Administrator Alan Fletcher, Port of Manchester, Box 304, Manchester, WA 98353; (360) 871-0500.

At more than 65 pages and more than 20,000 kilobytes in its electronic version, the City of Port Orchard’s draft comprehensive plan update is not exactly light bedside reading.
But the document, released to the public Monday, contains proposed goals and policies that will affect where people live and work, how they get around the city, the services they receive and the taxes they pay, among other issues. That’s why city officials are seeking citizen input on the plan now through its adoption by the city council in December.

One issue that’s likely to get close scrutiny is the potential effect of the new plan on taxpayers whose properties are rezoned to reflect revised policies on growth and economic development.
A change in zoning — for example from residential to commercial — could trigger an increase in assessed value, explained Kitsap County Assessor Jim Avery on Tuesday, but only if development in the surrounding area were to drive up the market value of the property.

For example, Avery explained, some properties on the Bethel Corridor did not see a significant increase in assessed value for some time after the area was rezoned commercial. Extension of the sewer line and the arrival of Fred Meyer were two factors assessors used to determine that the properties in question could now be sold for a significantly larger amount and so should be assessed at a higher value.

“There is a potential effect,” Avery said. “Is it automatic? We like to think we use some rationale when we revalue.”

A residential building in a commercial zone would not be protected from being assessed at the commercial rate simply because it was not being used as commercial property. Assessments are based on the property’s “highest and best use.”
If the increase in assessed value was greater as a result of the zoning change than others in the county, then taxes would go up as that rezoned property would be assuming a larger share of the tax burden, Avery said.
The draft comp plan is available in hard copy for $25 or as a DVD for $5 at City Hall. A free copy is available at www.portorchard.us.