The Details

Yes, It Really Is a 33% (or maybe even 45%) Increase in City Property Tax

The 2026 levy rate for the City of Shoreline, according to the King County Assessor's Office, is $1.67 per thousand. Adding the $.55 estimated tax for the Park District is a 33% increase. A yes vote on Proposition 1 actually authorizes the Park District to levy up to $.75 which would be a 45% increase.

(The higher levy rate is looking increasingly likely given the current rising interest rates. 10-year Treasury rates have risen from around 4% in March, when the City priced out their bond servicing costs, to around 4.8% in September. Many believe rates will continue to rise in the near term. Since the City will be issuing bonds to finance the pool construction, interest rates have a large impact on costs.)

Paying More for Less

This Proposition 1 is estimated to cost each household 73% more than the 2019 pool bond proposition, which was defeated by the voters (presumably for costing too much), for a project that is significantly reduced in scope from the 2019 proposal.

The 2019 Pool Bond Issue, which was defeated by the voters, was estimated by the City to cost the median-valued household $244 per year, for the life of the bond issue (~20 years). That proposal was for a 75,000 square foot facility that included a senior center, a commercial kitchen, a gym, an indoor track, weight rooms as well as pool facilities. (It also included improvements to four City parks. Those improvements were later rolled into the 2022 Bond Issue, for which the median-valued household is currently paying $144 per year.)

This year's Park District proposition is estimated by the City to cost the median-valued household $421 per year in perpetuity. The current proposal is for a 48,000 square foot facility, with no senior center, no kitchen, no gym, no track, and no weight rooms.

Low-Income Seniors, Disabled, and Veterans Will Be Hit Particulary Hard by These New Taxes

Note also that these new taxes will hit low-income Seniors, Veterans, and Disabled Persons particularly hard. While Senior Citizens, Disabled Persons, and Disabled Veterans meeting age, income, and/or disability requirements would have been eligible for exemption or deferral from the taxes for the 2019 bond issue, those exemptions or deferrals will not apply to the taxes created by this year's Proposition 1.

(The reason for this is that the new Metropolitan Park District will be a "Junior Taxing District", while the exemptions called out in RCW 84.36.381 only apply to "Regular Taxing Districts" and "Excess Levies". The taxes to service the 2019 bond issue would have been an "Excess Levy".)

The Details

Paying More for Less

The current Proposition 1 includes plans only for a 48,000-square-foot aquatic center. The City estimates that it will cost the median-valued household $421 per year in new taxes.

The 2019 Bond Issue, which was defeated by the voters (presumably for being too expensive), included plans for a 75,000-square-foot facility, including not just a pool, but also a gym, weight rooms, indoor track, commercial kitchen, and senior center. It also included funding for improvements to four City parks. That was estimated to cost the median-valued household just $244 per year.

(The Park improvements that were included in the failed 2019 Pool bond issue were later included in the 2022 Park Bond issue for which the median-valued household is currently paying $144/year.)

The Details

The tax exemptions and deferrals spelled out in RCW 84.36.381 only apply to "Excess Levies", "Regular Levies", and "Part 2 of the State School Levy". Metropolitan Park Districts are "Junior Taxing Districts", so they fall under none of those classifications. There are no exemptions or deferrals that will apply to the new and significant taxes created by this 2026 Proposition 1.

(Voted bond levies, like the 2022 Shoreline Parks Bond, and the (failed) 2019 Pool Bond are "Excess Levies", and thus many low-income/seniors are exempt from those. The Shoreline General Levy is a "Regular Levy", and so many low-income/seniors get relief from that. These same low-income/seniors will have to pay the full Metropolitian Parks Levy imposed by Proposition 1.)

Here is a flyer from the Washington Department of Revenue about the Senior Citizen & Disabled Persons property tax exemptions.

The Details

Proposition 1 Metropolitan Park District (Pool) Levy

Taxes under Proposition 1 will be levied in 2027, and payments will start in 2028. The amount of the levy is not yet determined, but the proposition allows for a levy of up to 75¢ per thousand of assessed value. (At 2026's median assessed value of $831k, that would be $623 for a median-valued household.)

The City General Tax Levy and Lid Lift

Under the Levy Lid Lift approved by voters in 2022, property taxes paid by a median-valued home to the Shoreline general fund increased from $707 in 2022 to $1070 in 2024 to $1243 in 2026. That's a 75% increase in just four years. (For comparison: Inflation — as measured by the Seattle area CPI-U — increased by a total of 20% over those four years. The total property tax bill — including state, county, fire, school, and the Shoreline park bond levies — for the median-valued Shoreline house has increased by 25% over that four-year period.)

The City levy will automatically increase at the rate of inflation in 2027 and again in 2028.

The City plans to request another levy lid lift in 2028 which, if approved, would increase taxes for the following ten years. The City has said that a levy lid lift will be crucial, but how big an increase the city will request has not yet been decided.

On top of all those recent and upcoming increases, Proposition 1, if passed, will increase the property tax levy to the City by an additional 30%–50%.

Schools and Other

In February 2026, voters approved two Shoreline School District levies to replace levies that expire in 2026. Those new levies are expected to increase taxes in 2027 over what they were in 2026 by $.22 per $1,000 of assessed value. (In 2026 the median-valued home paid $2525 in voter-approved levies to the Shoreline School District.)

Other projected and likely increases include a King County Best Starts for Kids Levy renewal in 2027, a potential Shoreline School District Bond and Levy for improvements in 2027 or 2028, a King County Library System levy lid lift in 2027, and a King County Veterans, Seniors, and Human Services Levy renewal in 2029.

The Details

The City's Debt Service Cost Estimates Look Overly Optimistic

Rates are already substantially higher than when the City made its financial projections for the pool project in March, 2026. Each half-percentage-point increase in rates adds over $6 million in interest to be paid on the $95 million 20-year bonds the City plans to issue in early 2028.

At the beginning of March, the staff report to the City Council stated [emphasis added]:

With inflation remaining elevated and global market volatility continuing, interest rates for both taxable and tax-exempt municipal debt also remain relatively high. Additional uncertainties, including tariffs and the potential for an economic slowdown, are expected to contribute to ongoing market volatility. For planning purposes, staff are modeling a True Interest Cost of 4.20% over a 20-year term. This assumption is intentionally conservative and reflects a rate approximately 50 basis points (0.5%) higher than anticipated at issuance. While interest rates may change between now and the planned issuance in November 2027, current projections do not indicate near-term rate increases.

(Narrator: There have been, in fact, near-term rate increases.)

Since March, the 10-year Treasury rate has increased from 4.15% (on March 6) to 5.28% (on October 2) — more than 1%. Municipal bond rates (20-year AAA-rated) have similarly increased from around 4.0% in March to 5.0% now.

Costs, Expenses, Income Are Highly Uncertain for Everyone Right Now

At the same time, rising inflation and unpredictable tariffs are likely to affect construction and operating costs.

Meanwhile, many taxpayers are struggling just to meet necessary expenses as the cost of living has risen substantially. It is a risky economic time for both the City and its taxpayers.

The Details

The luxury aquatic facility the City has described to voters is only 10% designed, so construction cost estimates of $100 million are simply best guesses. At one of the City’s recent information sessions on Proposition 1, staff said that after the project is designed and actual costs of construction are determined, if the cost exceeds $100 million, the project would be scaled back to keep it within that budget.

Will it be a Tesla or a Honda? Who knows?

The Details

For the gory details, the MRSC provides a good primer on the mechanics of how Metropolitan Park Districts (MPD) work. (Keep in mind that the MRSC is an organization whose purpose is, in large part, to advise Cities as to how they may increase their revenue.)

Really Just a Loophole

The Metropolitan Park District as proposed by this year's Proposition 1 is really just a loophole to create another revenue stream for the City.

The Proposition states that the board of the new Park District will consist ex officio of the City Council:

Section 1: Metropolitan Park District. The Shoreline City Council proposes that a metropolitan park district be created; that the district be called the "Shoreline Metropolitan Park District;" that its boundaries be the same as the Shoreline corporate limits; and that the Shoreline City Council serve as the ex officio board of commissioners.

The City's plans are that the Park District will sign its new tax revenues over to the City, with the City taking responsibility for constructing, maintaining, and operating the new pool. From the "packet" written for the 2026 City Council Strategic Planning session on March 6 & 7, 2026:

If moving forward with a ballot measure to create an MPD, staff recommend that revenue generated by the MPD be passed through to the City to include in the City’s budget to build, run, and maintain a pool facility. Staff further recommend that Councilmembers serve as the MPD commissioners in an ex officio capacity. As two separate entities, the MPD and the City would sign a service agreement that outlines terms for revenue generated by the MPD to be passed through to the City. The MPD would not have any direct employees.

The Details

Shoreline residents can use the pools of neighboring jurisdictions. Those pools charge daily access fees tiered for adults and kids and provide for discounted multi-day pass options.

Yost Pool in Edmonds has a $10 daily drop-in rate for adults and $25 for a family of up to six.

Lynnwood Recreation Center charges adults $9.75 for a single visit fitness pass to the recreation center and pool and offers an annual pass for a family of 4 for $1,065.

At Mountlake Terrace Pool adults pay $8 per day for drop in visits and seniors’ cost is $6.75.

In Seattle, the Helene Madison Pool at Haller Lake charges adults $8.00 and seniors $6.00 for daily use.

Private options include McMenamins North Shore Lagoon Swimming Pool in Bothell where one-hour sessions are $8.50 for adults and $7.50 for seniors.

The Dale Turner YMCA, which has not only a pool but a full recreation facility, is located right in Shoreline, just blocks from where Shoreline proposes to build the new facility. Family memberships to access all facilities are just $154 per month and single memberships are $91 per month, and scholarships based on income are available.

Free options with lake access swimming areas include Magnuson Park on Lake Washington and Lake Ballinger Park in Mountlake Terrace.

Shoreline estimates that access fees to use the proposed new facility would be similar to the fees charged in the neighboring jurisdictions. That means Shoreline residents who want pool access can attain it for what it would cost them to do so in Shoreline, but without burdening all taxpayers with a huge new tax obligation.

The Details

At the June 22, 2015 City Council meeting, Eric Friedli, Parks, Recreation and Cultural Services Director, reviewed the history of the pool, its characteristics, attendance trends, revenues and expenses. He reviewed scenarios to keep the pool operating through 2022 and 2035. He stated staff is recommending moving the pool master planning from 2018 to 2016 and performing it in conjunction with the Parks, Recreation and Open Space (PROS) planning. He estimated it would cost $745,000 to keep the pool open through 2022 and $3.1 million to keep it open through 2035. He stated staff’s recommendation is to keep the pool open through 2022. He reviewed status quo operation of the pool, implementation of all long-term recommendations, funding costs, and provided examples of pool improvements from other jurisdictions.

You may read the details in the agenda item for that meeting, as well as in the slides for Mr. Friedli's presentation.

The Details

In the report generated by city staff for agenda item 9b at the September 14, 2026 city council meeting relating to the biennial budget, it states that starting in 2028 the city’s expenses will exceed its revenue and that the city is projecting that there will be a continuing budget deficit each year through 2034. The report also states that the anticipated six-year Levy Lid Lift the City will request voters to approve in 2028 won’t solve the problem because it cannot increase the tax rate sufficiently to cover the budget deficit. (The following figure is from the top of page 9 of the report.)

The Nitty-Gritty

That is all alarming enough. However, if Prop 1 passes creating a new Metropolitan Park District and authorizing it to collect taxes of up to $.75 per thousand of assessed valuation, it could further limit the city’s ability to raise the taxes needed to meet its expenses. This is IMPORTANT, but it is also complicated, so please bear with us and read further here as we try to explain.

First, some definitions. A tax levy is the amount of money (in dollars) collected by a tax. A tax levy rate is the rate or amount per thousand dollars of assessed value that is charged against a property and paid by the taxpayer. Washington State limits how much the regular tax levy amount can increase from year to year to 1%. This limit can be modified by a voter-approved Levy Lid Lift.

Washington also limits the tax levy rate a tax jurisdiction can impose for regular taxes. Cities cannot impose rates greater than $3.375 per thousand. Metropolitan Park Districts cannot impose rates greater than $.75 per thousand. There is also a combined limit that applies to counties, cities, and most all other junior taxing districts including metropolitan park districts that levy taxes against the same properties. All those jurisdictions’ rates in combination cannot exceed $5.90 per thousand. If they do add up to more than $5.90, they will each automatically be reduced under a complicated formula provided by statute.

The limit of 1% per year on the tax levy amount can be changed by voters through approval of a Levy Lid Lift. That is, voters can authorize a levy rate increase that results in a greater than 1% increase in the tax amount collected. However, voters cannot authorize a levy rate increase above the maximum levy rate imposed on the taxing jurisdiction. The $3.375 limit on the levy rate maximum for cities, the $.75 maximum rate for metropolitan park districts, and the $5.90 limit on the combination of county, city, and other junior taxing districts cannot be changed by voters.

Please note, as with all things tax-related, there are exceptions, exclusions, weird definitions (like what is and isn’t a regular levy) and a bunch of fine print. And fluctuations in assessed values within the taxing jurisdiction also impact tax levy rate limits and the levy amount collected at a particular tax levy rate. This is just intended to provide a general overview and understanding of how the various tax limitations work.

The city report for the September 14, 2026 council meeting that projects budget deficits through 2034 states that the city cannot use a levy lid lift to increase the current tax levy rate (from page 8 of the report):

It is also important to note that with our current, conservatively forecasted, property valuation increases, staff does not anticipate having rate capacity to do a ‘reset’ or ‘bump’ with the next levy lid lift, which is currently scheduled for November, 2028.

The report doesn’t explain if the city is already bumping up against the $3.375 city rate limit or if it is concerned about the $5.90 combined overall rate limit and whether the $.75 of MPD taxes is part of that consideration. In any event, the new MPD tax could take up a big share of the $5.90 maximum allowed levy rate for the combined county, city and the other junior taxing districts going forward and limit their ability to increase taxes for necessary services.

How does the city plan to cover the deficit? The MPD tax, if imposed, can only be used to fund MPD expenses and would not be available to cover the deficit for the City’s essential services. For 2028, the city says there will be a surplus from 2027 to pay the deficit. After that, here’s what the city says (from the bottom of page 7):

[…] continued economic uncertainty requires a cautious approach to revenue forecasting, with some forecasters anticipating the possibility of an economic downturn in 2027 or 2028. An economic downturn could negatively affect economically sensitive revenues and create budget pressures that require the City to reduce spending, delay or eliminate planned programs and services, leave positions vacant, or take other cost-containment measures.

So if Proposition 1 is approved, taxpayers could find themselves paying 33% more to the city than before and receiving far less in City programs and services.

Summary

The City, by its own projections, won’t be able to meet its existing expenses through 2032 and yet wants voters to vote in favor of the city taking on new $100 million in debt to build a pool facility. And the new taxes to support that debt may prevent the city from collecting the taxes it needs to pay for essential services.

This does not seem like a fiscally responsible plan.