Clark Cowlitz Fire Rescue chief, others raise concerns over tax increment financing

Posted

Clark-Cowlitz Fire Rescue (CCFR) Chief John Nohr and local commissioners across the state are raising the alarm over the financial impact of tax-increment financing (TIF) districts on emergency services. 

A recent meeting, held on Monday, March 24, at Station 21 in Ridgefield, brought together several officials, including Fort Vancouver Regional Library (FVRL) Executive Director Jennifer Giltrop and Woodland Mayor Todd Dinehart, to discuss the issue.

Tax increment financing allows counties, towns, cities and ports 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. For up to 25 years, the TIF holder receives all increases in property tax revenue within the established district. TIFs were allowed under state law to improve economic viability across the state by the Legislature in 2021.

CCFR’s service area spans 125 square miles over Northwest Clark County and Southwest Cowlitz County and serves over 55,000 residents. Should every able municipality hold a TIF, CCFR could be subject to 14 TIF areas.

Existing and proposed TIFs

The Port of Ridgefield TIF was approved in April 2024, and the City of Ridgefield TIF was approved in November 2023. The Ridgefield City TIF covers 942 acres near the I-5 interchange, while the Port of Ridgefield TIF spans nearly 1,200 acres at the 179th and 219th interchanges. The proposed Port of Woodland TIF would cover 5,148 acres of “The Woodland Bottoms” east of the City of Woodland, and is expected to be approved in April 2025.

For CCFR, the City of Ridgefield’s TIF alone will result in an estimated loss of $23 million to $42 million in property tax revenue over 25 years. To offset this, the city has pledged a one-time $2 million contribution toward purchasing land for a new fire station. However, this payment falls short of addressing the long-term financial strain on emergency services, according to Nohr.

For CCFR, this means an increasing population and more emergency calls with no corresponding rise in funding to support additional personnel or equipment.

“If you have an open field, except for the occasional lightning strike that starts a grass fire, you don't have problems in an open field. We have problems in places where people live and places where people conduct business. We have problems where people are for emergency medical service calls. The key point there is people, and more people drive demand for our services,” Nohr argued.

The Costco development and lost revenue

One of the most striking examples Nohr highlighted was the new Costco development in Ridgefield. Normally, such a large-scale project would generate significant tax revenue to fund fire and rescue services. However, because the development falls within Ridgefield’s TIF district, CCFR will not receive any of the increased tax revenue. The TIF was established before Costco’s development, which means CCFR will receive property taxes as though the lot were still vacant.

Costco’s tax bill of $192,933 is written to send $34,767 to the fire district and $8,319 to its EMS levy. However, because of the TIF, CCFR will only receive $4,365 from the property.

“You didn’t vote for your money to go there, but it’s going there. You voted for your money to go to the library. You voted for your money to go to the fire district. I know there are people … that voted for our EMS levy … and I thank you for that, over 60% of the voters said yes to that. But your money isn’t going back in those areas,” Nohr said.

At the meeting, Giltrop, executive director of Fort Vancouver Regional Library, echoed many of Nohr’s concerns, emphasizing that libraries also suffer from the funding freeze imposed by TIFs. Giltrop and Nohr both pointed to Costco’s library levy. The Ridgefield Costco’s tax bill shows a $5,859 payment to the library, but the reality is that only $592 will be allocated for the next 25 years.

“More people are moving in, more businesses, more pressure on services to provide the community, but we're not getting the funding to do that, and taxes that people vote on for the library are then going to a different purpose unknowingly,” Giltrop told The Reflector.

Woodland Mayor Dinehart also spoke from the audience, calling for more public input. Dinehart encouraged community members to take an active role and attend Port of Woodland meetings.

“They're members of the community,” Dinehard said regarding the port’s commissioners. “I've been there 30 years. They've been there just as long or, if not longer, a couple of them. I think they're rational. I think that as a voice, we all need to show up there and let them know how we feel. So I would just encourage people to show up rather than just one or two more.”

With the challenges mounting, Nohr outlined three potential actions CCFR and other affected districts could take:

  • Fire Benefit Charge — CCFR could reduce the fire levy to $1 per $1,000 of assessed property value and institute a separate charge. This option requires a 60% supermajority vote from fire district voters to implement.
  • Special Operations Levy — CCFR could propose an additional levy to offset the revenue losses caused by TIFs.
  • Legal Action Against the State — CCFR could challenge the legality of the TIF law based on Washington state Constitution Article VII, Section 5, which states, "No tax shall be levied except in pursuance of law; and every law imposing a tax shall state distinctly the object of the same to which only it shall be applied." Pursuing this legal challenge could cost up to $80,000 in legal fees and take up to two years to resolve.

As the Port of Woodland continues its discussions on implementing a TIF, CCFR will watch closely. Nohr emphasized the need for community engagement and legislative adjustments to ensure that essential services are not left struggling under the current system.

“The fire district is not anti-growth,” Nohr said. “What we're saying is, when growth happens, it brings challenges for us, and we can't meet the challenges if we don't have the revenue."