Our November ballot seeks establishment of an island-wide Port District to be managed by five, simultaneously chosen commissioners. If approved by a simple majority vote, the Port of Bainbridge Island becomes our sixth taxing district.
Port Districts are given wide latitude in statute whereby commissioners, independent of voter approval, can: 1) Levy property taxes up to $0.45/$1000 assessed valuation; 2) Create Industrial Development Districts funded from property taxes levied in addition to the tax collected for district operations; 3) Acquire property through condemnation or eminent domain; and 4) Sell bonds to finance port operations or any port-approved development district.
Proponents of the initiative, with heavy representation from boat owners, surmise initial operations will be funded with an annual
$0.11/$1000 tax levy generating $620,000. This is expected to finance commissioner per diem of up to $100/meeting (maximum $12,535/commissioner/yr.), staff salary and benefits, legal expenses, office furnishings and rent.
While the setting of goals and priorities rests with the commissioners, proponent’s first priorities include: completion of the Eagle Harbor waterfront trail and implementation of the Harbor Management Plan. Improvement of: community access to the water at road ends; the public dock at Waterfront Park; boat ramps and facilities for visiting boats (e.g., fuel dock). More broadly, a major district role in economic development is foreseen.
What are the pros and cons of this nearly irrevocable decision?
The major port cities of Seattle, Tacoma, Olympia, Everett, etc., are key promoters of harbor and wetland preservation, pollution cleanup and economic development made possible from extensive operations with positive cash flow. Smaller districts are active in waterfront development proposed to happen here. Notably, whether large or small, no district is statutorily required to work with other agencies within the same legal jurisdiction.
The Municipal Research and Services Center for Washington, an independent resource for city and county elected officials, conducted extensive analysis of special districts and concluded:
• Special Districts were operating within the intent of authorizing legislation and appeared to fulfill a need for services which seemed to be effective. Some services might be provided by other government entities, but those entities were not interested. However, there were no mechanisms in place to provide oversight or evaluation of efficiency or effectiveness.
• The report also noted: growth planning impeded by lack of coordination between local governments and ports; some were too small; services often duplicated; fewer voters and candidates participate in district elections. It concluded that goals of cost-effectiveness, coordination and accountability should have precedence, and suggested that small city governments should provide needed services rather than authorize small special purpose districts.
With approval being nearly irrevocable, a serious decision confronts us:
• Is a Port District the preferred agency for establishing community economic development goals?
Our Comp Plan Economic Ele-ment, written in 2004, is scheduled for update in 2012-13. Would a newly formed Port District enhance or complicate the needed economic development plan?
• Will island governance and efficiencies be improved with the addition of a sixth taxing district? Does the proviso noted by the MRSC above regarding small districts apply to Bainbridge?
Our recently formed council-manager city government has established a strategic planning process which permits direct community involvement in establishing goals and priorities. Could this be an avenue for addressing the proponent’s priorities?
• Will adding another independent taxing agency complicate funding for existing agencies?
Does extracting $600,000 a year in additional property taxes put other island priorities at risk, e.g., schools? What happens if the commissioners increase the tax rate?
• Will we find individuals with the skills and willingness to manage a Port District?
If a Port District is determined to be needed, is it logical or sensible to create it without public vetting of commissioner candidates or a thorough evaluation of their plan prior to approval? Will it be another agency where uncontested races (first filers generally elected) become the norm?
This website is a succinct, easily understood overview of Washington Port Districts. Read it and pass it on to others. http://www.lwvwa.org/pdfs/studies/.
Bob Fortner wrote this piece for the Bainbridge Resource Group, of which he is a member.
