During a recent government meeting, officials discussed the tax rates for Metropolitan Park Districts (MPDs) in Olympia, Tumwater, and Lacey, revealing significant differences in their levy rates and voter approval histories. Olympia's 2024 levy rate is set at 50 cents per $1,000 of assessed property value, while Tumwater's rate is slightly lower at just under 33 cents. Lacey, which currently lacks an MPD, has no levy rate established.

The conversation highlighted the importance of voter approval for establishing MPDs, with Tumwater's MPD passing with strong support in 2018, while Lacey's previous attempt failed to gain the necessary backing. The officials noted that a successful MPD could generate substantial revenue, with projections indicating that a 75-cent levy could raise approximately $9.9 million based on Lacey's assessed valuation of $13 billion.

The meeting also addressed the implications of potential levy increases on property taxes, particularly for homeowners. For instance, a 25-cent levy would cost a homeowner of a $500,000 house about $125 annually, while a full 75-cent levy would double their property tax burden. The officials emphasized that Lacey's current property tax rate is relatively low, which could lead to significant increases if a new MPD levy is approved.

Additionally, the discussion touched on the flexibility of how MPD funds can be allocated, with no statutory limits on the percentage spent on capital versus operating expenses. This flexibility allows cities to tailor their funding strategies based on community needs.

The meeting concluded with a focus on impact fees for new developments, which are intended to ensure that growth pays for growth. While Lacey does not currently have impact fees for parks, officials acknowledged the challenges in assessing the specific impacts of new developments on park infrastructure. As Lacey approaches full build-out, the potential for collecting these fees may diminish, prompting a need for alternative funding strategies to support park development and maintenance.