Clark-Cowlitz Fire Rescue (CCFR) leaders are concerned about a recent decision by the Port of Ridgefield that will siphon millions in property tax revenue from the fire district and direct them to the port.
On April 10, the Port of Ridgefield’s commissioners unanimously approved a funding mechanism and creating a special tax collection area in downtown Ridgefield and in several parcels of land in proximity to the Interstate 5 and Northeast 10th Avenue corridors to make improvements on its waterfront.
Tax increment financing (TIF) allows the Port of Ridgefield to establish a taxing area with boundaries within its port district. Under the tax boundary, other property tax collectors, including libraries and fire districts, increases in property tax revenue will be frozen in the taxing area effective January 2025. For 25 years, the port will receive all increases in property tax revenue within the established district.
If an empty lot’s property value is assessed at $1 million, a levy of $1.50 per $1,000 of property value would provide the fire district with $1,500 every month. If a building is constructed and raises the property’s value to $10 million, the district would normally receive $15,000 from the property a month. However, a TIF that began when the property was an empty lot would cap the fire district’s collection at $1,500 per month for 25 years, even if the property value is raised.
CCFR leaders said, however, the port’s decision will negatively impact the fire district’s ability to serve its growing population.
CCFR serves over 60,000 residents in a 125-square mile district, spanning from south of Battle Ground to Cowlitz County.
CCFR Fire Chief John Nohr opposes the TIF decision because it will prevent the fire district from collecting its share of property tax revenue increases in the area, even though the fire district will continue to serve the new tenants and buildings resulting from the developments made in the TIF areas.
“It’s like your boss saying ‘Hey, I’m going to freeze your pay for the next 25 years, and I’m going to use that money I didn’t spend paying you to make more work for you,’ ” Nohr said. “So, your workload goes up, and your pay doesn’t go up.”
Port commissioners, however, indicated they are willing to work with CCFR to potentially mitigate any impacts from the TIF, as permitted by state law. CCFR Commissioner Larry Bartel said he appreciated the port’s willingness to do so.
“I thought it was very upfront of them, and it’s the right thing to do,” Bartel said. “The law is wrong in my opinion. At least they’re saying, ‘Hey, we’re going to follow the changes, and we’re going to try to make it right by you.’”
Nohr said that while the impacts of TIF collections are small to start with, it impacts CCFR’s budget in the millions of dollars years in the future. Over the 25-year period, Nohr has estimated that the district will lose out on $17 million to $28 million.
The Port of Ridgefield will use the TIF money to revitalize the historic waterfront with buildings, infrastructure and amenities. The port’s commissioners have expressed interest in using funds to build a new boat launch for CCFR within the waterfront. Nohr said that while he appreciates the idea, such developments will not occur until late into the TIF lifespan.
“I understand what the (Port) of Ridgefield is trying to do,” Nohr said. “I support the city’s efforts to increase its job base (and) increase developments. I just don’t support them doing that on fire district revenue.”
CCFR will also lose money from a separate TIF created in Ridgefield, as well.
Ridgefield’s City Council approved its own TIF boundary in November last year within city limits adjacent to Pioneer Street. The property tax increases collected from the area will fund several infrastructure projects, including the widening of Pioneer Street to four lanes. Nohr expects CCFR to forgo $18 million to $33 million from the city’s TIF over the 25-year period.
While unrelated to the TIF matter, at press time, CCFR commissioners will likely approve placing a levy lid lift on the Aug. 18 primary ballot. With voter approval, property taxes would be raised from $1.26 to $1.50 and would grant an additional $2,850,000 in annual funds next year for the fire district.
