Started by Larry Hendel
Oct 14, 2023
Oct 14, 2023
9
LIHD Levy Taxes Made Easy
Oct 14, 2023
LIHD Levy Taxes Made Easy - revised
The following data is not meant to be interpreted as advocating for or against the LIHD levy lid-lift, but merely to provide information for the Lopez taxpayer. New preliminary data from the Assessor’s Office, 10/18/2023.
According to the ballot measure wording, if the levy passes, the LIHD can increase the rate by 6% per year starting in 2025 for 5 years, not the usual 1% increase. New construction assessments can be added each year. This generally adds another 1%-2%.
These two figures ( 6% + 1%-2% new construction) determine the amount received but the total rate cannot exceed $.75 per $1,000 of assessed value.
If the levy fails:
2023 LIHD received: $924,737,
2024 LIHD will receive $933,984 plus additional new construction of *$10,300 = $944,280,
*this figure could change but very slightly
2025 LIHD could receive $972,600
If the proposed levy passes:
2024 LIHD will receive $1,686,234.
This figure is the total 2023 Lopez assessed value of $2,248,312,189 x .75/1000.
With construction booming, assume an added 2% each year to the 6% increase (8% increase) starting in 2025. Please note that the 6% increase per year is automatic unless LIHD chooses not to take the full amount.
Amount LIHD could receive in:
2025 $1,821,132,
2026 $1,966,823,
2027 $2,124,169,
2028 $2,294,102,
2029 $2,477,630,
2024 to 2029 = $791,396 (47%) increase for this period
If your property is assessed at $800,000 now, your LIHD tax could be $600 in 2024.
Background information - Per the County Assessor's office, the actual certified levy amounts the District (LIHD) received 1% increase plus new construction were:
2018 $833,662.27,
2019 $849,996.57,
2020 $872,471.50,
2021 $885,380.65,
2022 $903,509.53,
2023 $924,737.21,
2018 to 2023 $91,075 (11%) increase for this period
The following data is not meant to be interpreted as advocating for or against the LIHD levy lid-lift, but merely to provide information for the Lopez taxpayer. New preliminary data from the Assessor’s Office, 10/18/2023.
According to the ballot measure wording, if the levy passes, the LIHD can increase the rate by 6% per year starting in 2025 for 5 years, not the usual 1% increase. New construction assessments can be added each year. This generally adds another 1%-2%.
These two figures ( 6% + 1%-2% new construction) determine the amount received but the total rate cannot exceed $.75 per $1,000 of assessed value.
If the levy fails:
2023 LIHD received: $924,737,
2024 LIHD will receive $933,984 plus additional new construction of *$10,300 = $944,280,
*this figure could change but very slightly
2025 LIHD could receive $972,600
If the proposed levy passes:
2024 LIHD will receive $1,686,234.
This figure is the total 2023 Lopez assessed value of $2,248,312,189 x .75/1000.
With construction booming, assume an added 2% each year to the 6% increase (8% increase) starting in 2025. Please note that the 6% increase per year is automatic unless LIHD chooses not to take the full amount.
Amount LIHD could receive in:
2025 $1,821,132,
2026 $1,966,823,
2027 $2,124,169,
2028 $2,294,102,
2029 $2,477,630,
2024 to 2029 = $791,396 (47%) increase for this period
If your property is assessed at $800,000 now, your LIHD tax could be $600 in 2024.
Background information - Per the County Assessor's office, the actual certified levy amounts the District (LIHD) received 1% increase plus new construction were:
2018 $833,662.27,
2019 $849,996.57,
2020 $872,471.50,
2021 $885,380.65,
2022 $903,509.53,
2023 $924,737.21,
2018 to 2023 $91,075 (11%) increase for this period
Comment by Robert Buchholz
Oct 22, 2023
Oct 22, 2023
1
If tax money collected is more than needed, the LIHD Commissioners can "bank" the excess and reduce taxes in subsequent years. This effectively puts the tax money back in the same pocket.
Comment by Heike And Terry
Oct 21, 2023
Oct 21, 2023
0
Support the clinic with your excess funds:
https://catherinewashburnmedical.org/guide-to-giving/
https://catherinewashburnmedical.org/guide-to-giving/
Comment by Heike And Terry
Oct 21, 2023
Oct 21, 2023
0
Yeh I know, I estimated many annual corporate team budgets, operation and special projects, but I never had that much overage. And with corporate budgets the overage goes back into the same pocket it came from. A little different with taxes.
Heike
Heike
Comment by Robert Buchholz
Oct 21, 2023
Oct 21, 2023
2
Forecasting Expenses is always an inexact science. For 2023, LIHD is forecast to operate at a $48,000 loss with increased Expenses expected in future years. That in itself would argue for a Levy Lift.
If Income proves to be more than actual Expenses, LIHD Commissioners can "bank" future year collections to reduce LIHD tax levels.
If Income proves to be more than actual Expenses, LIHD Commissioners can "bank" future year collections to reduce LIHD tax levels.
Comment by Heike And Terry
Oct 21, 2023
Oct 21, 2023
0
Many thanks for the correct actuals, I had assumed the expense file in the 2023 folder had the right 2022 data. So:
$1,234,261 budget forecast for 2022
$722,433 operating costs in 2022
$924,737 revenue in 2023
So t ... Read All
$1,234,261 budget forecast for 2022
$722,433 operating costs in 2022
$924,737 revenue in 2023
So t ... Read All
Comment by Robert Buchholz
Oct 20, 2023
Oct 20, 2023
3
Here's how I found it.
Go to the LIHD Website
Click on Documents
Click on Budgets, Agreements etc
Click on 2023
Click on Link to Budget Docs.
Click on 2022-2027 LIHD Financial Projections (Excel File)
Let me know if this works fo you.
Go to the LIHD Website
Click on Documents
Click on Budgets, Agreements etc
Click on 2023
Click on Link to Budget Docs.
Click on 2022-2027 LIHD Financial Projections (Excel File)
Let me know if this works fo you.
Comment by Heike And Terry
Oct 20, 2023
Oct 20, 2023
0
Thank you that’s very helpful. Could you tell me how to navigate to the budget sheet you mentioned (I get a login barrier from the link)?
Comment by Robert Buchholz
Oct 20, 2023
Oct 20, 2023
3
Hi Heike and Terry,
It appears the source you cite does not show the Actual Total Expenses for 2022 but are a partial year accounting. Final 2022 Expenses can be found here:
https://lopezislandhd.sharepoint.com/sites/LIHDBoardofCommissioners/ ... Read All
It appears the source you cite does not show the Actual Total Expenses for 2022 but are a partial year accounting. Final 2022 Expenses can be found here:
https://lopezislandhd.sharepoint.com/sites/LIHDBoardofCommissioners/ ... Read All
Comment by Heike And Terry
Oct 20, 2023
Oct 20, 2023
0
The 2023 budget forecast is roughly 3x as high as the actual expenses of the year before. LIHD Budget+actuals sheet 6531 @ link below: ... Read All
Comment by Robert Buchholz
Oct 19, 2023
Oct 19, 2023
4
The originating comments from 10/14/2023 for this discussion lay out scenarios for LIHD Revenue. That is only part of Lopez Island healthcare finance. Costs must also be considered.
Projected costs for operating LIHD are:
2023 $973,422
2024 $1,343,717 ($100,000 sequestered to facilitate Pharmacy sale.}
2025 $1,040,101
2026 $1,193,567
2027 $1,274,349
If Proposition #1 (Levy Lift) is not passed, projected Revenues per the view of the originating comments are:
2023 $924,737
2024 $952,479
2025 $981,053
2026 $1,010,485
2027 $1,040,800
It should be pointed out that the 1% per annum Levy growth is a limit, not a guarantee. In 2020, LIHD taxes dropped relative to 2019 for some Lopezians.
Using the above data, the difference between Cost and Revenue is:
2023 -$48,685
2024 -$391,238
2025 -$59,048
2026 -$183,082
2027 -$233,550
LIHD is operating at a loss in 2023 and will continue to operate at a loss if these projections are accurate and Proposition #1 is not passed.
LIHD is not in jeopardy in the short term as Reserves are available. At the beginning of the year, Reserves would be:
2023 $600,000
2024 $551,315
2025 $160,077
2026 -$82,053
2027 -$265135
2028 -$498,685
Obviously, if Lopez Island healthcare is to be maintained at the present level and Cost projections are accurate, a Levy Lift will be required.
National healthcare costs have been rising at least by 6% per annum. Proposition #1 attempts to anticipate this trend with a 6% per annum escalator. The 6% is not automatic and the LIHD can always “bank†levy amounts if it appears the Levy amount in any particular year will be excessive. This happened on Orcas where the Hospital District #3 Levy was $1,901,812 in 2022. In 2023, the Levy was reduced to $1,648,036. The effect of “banking†Levy Lift funds is to reduce payments for individual taxpayers
In addition, the full 6% would not be applied if it pushed the Levy above $0.75 per $1000 of valuation.
Alternatively, many Lopezians have said they want an increase in healthcare services. It might be possible to provide these services if there are excess funds.
To keep Lopez healthcare at present or improved levels, Proposition #1 should be passed. If it fails, Lopez healthcare could be put at risk. Passage will also allow tuning Revenues to match Costs.
Projected costs for operating LIHD are:
2023 $973,422
2024 $1,343,717 ($100,000 sequestered to facilitate Pharmacy sale.}
2025 $1,040,101
2026 $1,193,567
2027 $1,274,349
If Proposition #1 (Levy Lift) is not passed, projected Revenues per the view of the originating comments are:
2023 $924,737
2024 $952,479
2025 $981,053
2026 $1,010,485
2027 $1,040,800
It should be pointed out that the 1% per annum Levy growth is a limit, not a guarantee. In 2020, LIHD taxes dropped relative to 2019 for some Lopezians.
Using the above data, the difference between Cost and Revenue is:
2023 -$48,685
2024 -$391,238
2025 -$59,048
2026 -$183,082
2027 -$233,550
LIHD is operating at a loss in 2023 and will continue to operate at a loss if these projections are accurate and Proposition #1 is not passed.
LIHD is not in jeopardy in the short term as Reserves are available. At the beginning of the year, Reserves would be:
2023 $600,000
2024 $551,315
2025 $160,077
2026 -$82,053
2027 -$265135
2028 -$498,685
Obviously, if Lopez Island healthcare is to be maintained at the present level and Cost projections are accurate, a Levy Lift will be required.
National healthcare costs have been rising at least by 6% per annum. Proposition #1 attempts to anticipate this trend with a 6% per annum escalator. The 6% is not automatic and the LIHD can always “bank†levy amounts if it appears the Levy amount in any particular year will be excessive. This happened on Orcas where the Hospital District #3 Levy was $1,901,812 in 2022. In 2023, the Levy was reduced to $1,648,036. The effect of “banking†Levy Lift funds is to reduce payments for individual taxpayers
In addition, the full 6% would not be applied if it pushed the Levy above $0.75 per $1000 of valuation.
Alternatively, many Lopezians have said they want an increase in healthcare services. It might be possible to provide these services if there are excess funds.
To keep Lopez healthcare at present or improved levels, Proposition #1 should be passed. If it fails, Lopez healthcare could be put at risk. Passage will also allow tuning Revenues to match Costs.