Proposition No. 1 passing to increase property tax levy

According to the Town of Cathlamet’s website, Cathlamet Town Council adopted Resolution No. 463-25, which “placed a property tax levy lid measure on the Nov. 4, 2025 ballot.” If approved by voters, this measure (Proposition No. 1) “would allow the Town to increase its property tax levy to provide additional funding for services such as police and fire protection, road maintenance, parks and recreation, pool, library, and general administrative operations.” Washington State law (RCW 84.55.010) dictates local governments “are generally limited to increasing their property tax revenue by no more than one percent per year.” By definition, a levy lid lift is “a voter-approved measure that allows the Town to exceed this limit, permitting a higher property tax levy than the standard cap allows.” According to this law, “approval by a simple majority of Town voters is required for the measure to be adopted.”

The Town website states, “Proposition No. 1 proposes a permanent, single-year levy lid lift that would increase the Town’s regular property tax levy from $0.91417 to $2.00 per $1,000 of assessed property value (AV) for collection in 2026.” With the Town expected to collect approximately $91,417 in property tax revenues in 2025, Proposition No. 1 “would increase that amount to approximately $200,000 in 2026 and would become the new base amount for calculating future annual increases under state law.”

As far as why the proposition is being placed on the Nov. 4 ballot, current budget projections indicate expenses “may continue to exceed revenues by approximately $350,000 or more annually.” At that pace, the Town’s cash reserves “are projected to be fully depleted by mid-year 2028, which could affect the Town’s ability to maintain current service levels,” according to the Town’s website. Proposition No. 1 “would help narrow the funding gap by generating approximately $108,583 in additional revenue for the Town’s General Fund in 2026 to support basic public safety and other essential services, while also providing additional time to explore further options to address the remaining shortfall.”

The website states, “for the average homeowner with a property valued at $300,000, the proposed increase would result in an estimated additional property tax of $326 per year beginning in 2026.”

Should Proposition No. 1 not be approved by voters on the Nov. 4 ballot, the Town’s property tax levy “will remain subject to the one percent annual increase cap, limiting its ability to increase operating revenues.” As the Town expects operational expenses to continue outpacing revenues due to inflation, “increased service demands, and ongoing infrastructure maintenance needs, service levels and maintenance of streets, parks and recreation, pool, library, public safety, and other public facilities may be impacted.”

For more info on Proposition No. 1, visit townofcathlamet.com or contact Town Hall by phone at 360-795-3203 or be email at accounting@townofcathlamet.com.