SEQUIM — A windfall for Clallam County Fire District No. 3 could turn into a shortfall for the city now that a fire district levy request voted on this week appears to be passing.
A provision in state law caps the collection of levy funding among certain taxing districts within cities.
Sequim city residents may not be taxed at a rate higher than $3.60 per $1,000 of assessed property value for combined levy funding of city government, Fire District No. 3 and the North Olympic Library System.
As of Tuesday’s count, voters were approving an increase, or “levy lift,” hiking the fire district’s maintenance and operations levy collection rate from 92 cents to $1.50 per $1,000 of assessed value.
That measure had posted 54 percent yes votes and 46 percent no votes on Tuesday night, with more ballots to be counted today and again on Tuesday.
That’s good news for the district, but it would mean a shift in funding between the three entities, and the city would lose 34 cents per $1,000 of assessed value — or about $170,000 annually — according to City Manager Bill Elliott.
The city currently collects $1.94 per $1,000 of assessed valuation from its property owners, not counting levies or bonds.
Those living outside city limits are not capped and will pay the additional fire district levy rate, but not city taxes.
“This is a pretty dynamic shift in the tax system here,” Elliott said.
The loss would be based on current assessments and collection rates.
