Metropolitan Park District Finances
A metropolitan park district (MPD) is a junior taxing district that has two regular property tax levies available – one of $0.50 per $1,000 assessed valuation (AV) and one of $0.25. They are considered as a single levy (up to $0.75) for the purposes of the 1% annual levy limits in chapter 84.55 RCW, which sets limits on the amount by which a levy can be increased (RCW 35.61.210). However, the levy rate could potentially be reduced through prorationing, and the two portions of the levy have different rankings in the prorationing statute (RCW 84.52.010).
Any taxing jurisdiction, including a metropolitan park district, that is levying property taxes at a rate lower than its maximum rate can ask the voters to lift the levy lid by more than one percent. A simple majority vote is required. For more information, see our Levy Lid Lifts page.
A metropolitan park district may also impose one-year excess levies, subject to 60% voter approval and minimum validation (turnout) requirements. See RCW 84.52.052, RCW 35.61.210, and Washington State Constitution, Art. 7, Sec. 2(a).
Metropolitan park districts may issue general obligation debt in an amount equal to 2 ½ percent of their assessed valuations. (RCW 35.61.110) Of this 2 ½ percent, ¼ percent may be nonvoted (also called councilmanic) debt. (RCW 35.61.100) The rest must be voted. The source for repayment of nonvoted debt is the district’s general fund. For voted debt, debt service is paid from an excess property tax levy, which must be passed by a 60 percent vote, with an election turnout of at least 40 percent of those voting in the last general election. (RCW 84.52.056 and art. 7, sec.2, of the constitution.) This debt must be used for capital purposes (RCW 84.52.056) and can issued for a maximum of 20 years. (RCW 35.61.100)
Districts may also issue all kinds of short-term debt: tax anticipation notes, bond anticipation notes, revenue anticipation notes, grant anticipation notes as well as use lines of credit. (RCW 35.61.100)
The ex officio treasurer of the district must be the county treasurer of the county within which all, or the major portion, of the district lies, unless otherwise designated by the district (RCW 35.61.180). If the district boundaries are coterminous with the boundaries of a city, the city may act as the district treasurer. Otherwise, the district can designate a different treasurer only if the board has received the approval of the county treasurer. If the district is someone other than the city or county treasurer, the treasurer must be bonded.
If the district is using the county treasurer, the district’s tax revenues must be placed in a separate fund within the county treasurer’s office to be known as the “metropolitan park district fund” and paid out on warrants (RCW 35.61.210).
Since we are all having our properties reassessed, I wanted to check how this affects the Friends Of The Pool (FOTP) Aquatics District funding potential with updated tax revenues and debt service. I sent an email to the assessor.
“Assessor assessor@co.okanogan.wa.us
Thur, Jul 20 at 7:30 AM
Ray, the assessed value in an ever changing number we are not complete with the new values for the 2024 tax year. The Appraisers are looking at all the new construction right now but I will give you the assessed value as of yesterday.
The assessment for 2024 taxes for the Methow Scholl District as of 7/19/2023 is 2,683,316,500. This value will increase as new construction is added.
Larry Gilman
Okanogan County Assessor”
The FOTP feasibility study used previous years assessed values for their analysis. We are being reassessed now significantly upward which increases the potential tax revenues and debt service for the proposed Aquatics District.
FOTP Feasibility Study figure:
$1,190,000 tax revenue for $0.75/$1000 levy rate
Total Debt Limit: $39.7 million
Total Non-Voted Limit: $3.97 million
New figures based on current assessed values:
$2,012,000 tax revenue for $0.75/$1000 levy rate
Total Debt Limit: $67.1 million
Total Non-Voted Limit: $6.71 million
WOW!!! What an increase and windfall for FOTP’s funding desires with their proposed Aquatics District that has no requirement for public input.
Another interesting factoid using the new assessed values:
The previous potential tax revenue for the other two park districts they were considering increase from $950,000 to $1,610,000… MORE than the chosen original MPD type Aquatics District’s $1,190,000 value! In summary:
Park and Recreation District:
$1,610,000 tax revenue based on $0.60/$1000 levy rate
Total Debt Limit: $33.5 million
Total Non-Voted Limit: $10.06 million
Park and Recreation Service Area:
$1,610,000 tax revenue based on $0.60/$1000 levy rate
Total Debt Limit: $67.1 million
Total Non-Voted Limit: $10.06 million
I wonder if this would have influenced FOTP’s decision on what park/recreation district model to choose??? The other two options would now have more than enough revenue and debt service. They would have to be voter approved and I believe FOTP would not want this hurdle of voter approval.