FAQs (last updated 6/5/2026)
Q1: What is being proposed?
Kenmore is asking voters to consider a levy lid lift. The proposal is called Proposition 1: Climate & Environmental Stewardship, Affordable Housing, and Human Services Levy (Proposition 1) and, if passed, will be on the November 3, 2026 general election ballot.
Q2: What is a levy lid lift?
The passage of Initiative 747 in 2001 established a “101% levy limit” limiting the amount that any taxing jurisdiction can increase its regular property tax levy (the total amount of revenue collected) each year from current assessed valuation (excluding new construction) without voter approval.
A taxing jurisdiction may ask a simple majority of voters to “lift” the total levy amount collected from current assessed valuation by more than 1%.
To learn more about levy lid lifts, please visit
https://mrsc.org/explore-topics/finance/revenues/levy-lid-lifts
Q3: What type of levy lid lift is being proposed?
Proposition 1 is a 6-year permanent levy lid lift.
Q4: Why are we considering this proposal?
The City Council authorized the 2024 Financial Sustainability Plan (“FSP”), which was prepared by the Financial Sustainability Task Force with community input. The FSP forecasts that the City will not meet its reserve goal of 20% by 2029 and will have a cumulative operating deficit of approximately $20.2 million by 2032 if steps to obtain additional revenue are not taken. The FSP also identifies potential revenue sources to address the deficits, including a potential ballot measure authorizing a “lift” of the state mandated 1% annual growth limit of property tax under Chap. 84.55 RCW, referred to as a “levy lid lift”.
The City also does annual forecast updates. Given recent inflation, it is now anticipated that the reserve limit may not be met as early as 2028.
To plan for long-term fiscal sustainability of the City, and address the FSP’s forecast of significant budget deficits by 2032, the Council met at the May 17, 2025, February 23, 2026, March 21-22, 2026, April 6, 2026, and May 4, 2026, public meetings to discuss financial sustainability and potential revenue measures and after much discussion and deliberation, at the May 4, 2026, meeting, the City Council directed staff to bring forward a proposed ordinance asking voters to consider a ballot measure at the November 3, 2026 election to increase the City’s regular property tax levy above the state-mandated 1% annual levy lid limit.
For additional information on the City’s most recent forecast and upcoming budget process, please see Q10 below.
Q5: What will Proposition 1 fund?
The purposes of the proposed levy lid lift are to support and fund programs and services related to Climate and Environmental Stewardship, Affordable Housing, and Human Services.
Climate and Environmental Stewardship: Programs and services relating to reduction of greenhouse gas emissions, community preparedness for climate impacts, and preservation of natural resources. Programs and services center on, but are not limited to, energy efficiency and renewable energy programs, electric vehicle charging, tree planting and canopy growth, maintaining habitat and open space, waste diversion, community education, and youth internships and community partnerships;
Affordable Housing: The City is a member and provides funding to A Regional Coalition for Housing (“ARCH”), a coalition of several East King County cities and King County focused on increasing and preserving affordable housing for low and moderate income households. City funding provided to ARCH and other affordable housing opportunities, includes but is not limited to, support for development of housing policies, strategies, and regulations; administration of housing programs; assistance to people looking for affordable rental and ownership housing; and coordination of investments and/or acquisitions in affordable housing development; and
Human Services: Programs and services the City funds by contracting with agencies who provide support services to families, seniors, youth and other vulnerable populations, in categories including but not limited to, assistance with food, utilities, housing, transportation, physical and behavioral health and education.
Q6: Has the City ever gone to the voters for a levy lid lift?
No, the City has not submitted a ballot measure for a levy lid lift to the voters previously. In 2016, the City asked voters to approve the Walkways & Waterways bond measure. This program built sidewalks and made other physical improvements to our community.
Q7: What is the difference between a bond measure and a levy lid lift?
A bond measure creates municipal debt in the form of unlimited tax general obligation (UTGO) bonds. When the voters are being asked to approve the issuance of these bonds, they are simultaneously asked to approve an excess levy which raises their property taxes to cover the debt service payments. UTGO bonds can be used only for capital purposes such as acquisition or construction of capital facilities or other capital assets. UTGO bonds must be approved by 60% of the voters, with a voter turnout equal to at least 40% of those who voted in the last state general election.
A levy lid lift raises property taxes but does not generate municipal debt. Levy lid lifts may generate revenue for any purpose, but they must be noted in the levy language. All levy lid lifts require a simple majority (50% plus one) for passage and do not have any minimum voter turnout requirements.
Q8: Where do my property taxes go?
Of the property tax revenue generated, 7.22% goes to Kenmore’s operating budget and 1.21% goes to Walkways & Waterways. The remainder goes to the State, County, and other taxing districts and revenue measures.
Q9: How much will Proposition 1 cost a property owner in Kenmore?
Proposition 1 would cost 36 cents per $1,000 of assessed valuation, or approximately $30.00 per month for the owner of a $1,000,000 home.
INCREASED COST ESTIMATE PER ASSESSED VALUE
*These values are estimates.
Q10: Why is Kenmore considering Proposition 1 now?
The City of Kenmore is preparing the 2027–2028 Biennial Budget and evaluating how to continue funding services, programs, and infrastructure priorities in a financially sustainable manner. Kenmore has identified a structural deficit in the budget.
For additional information on the City’s most recent forecast and upcoming budget process, please visit kenmorewa.gov/cityfinances
Q11: What is a “structural deficit”?
A structural deficit occurs when ongoing expenses grow faster than ongoing revenues. In Kenmore’s case, the costs of providing City services, programs, contracts, and infrastructure have increased faster than available revenue sources.
Q12: Why can’t the City increase revenues to match inflation?
Washington State law limits the amount cities can increase property tax revenue to 1% annually, not including new construction. Inflation and operating costs have increased on average 5% annually in the past 5 years.
This means City costs for items such as contracts, materials, utilities, insurance, and labor may increase faster than available revenues.
