Frequently Asked Questions

Why does Lake Forest Park need to raise money with Prop 1?

Property taxes are a crucial source of revenue for the city’s general fund and the city uses that money to provide services to residents. To keep up with rising costs, the city has already made cuts and reduced services to keep spending low. However, in just the last five years, inflation in our area has increased by 26.78% and prices are continuing to rise rapidly. This makes the city about $2,200,000 short each year. In fact, at the recent Sept. 24 council meeting, the 2027-2028 budget was introduced, and the predicted general fund deficit is $4.5 million over those 2 years:

State law limits the city to a 1% property tax increase without a vote by its residents, but that amount (about $34,500) is not nearly enough. Prop 1 asks the residents of LFP to raise their property taxes enough to make up the gap. Note that this is a temporary levy lid lift that will expire after 6 years.

How will the revenues from Prop 1 be spent?

The levy proposition passed by the council requires that all revenue be spent on public safety. Below is a list from the city’s website of how the levy revenue will be spent.

Prop 1 says the funds raised will be spent on public safety services. Why did the city decide to only focus on public safety services?

The decision was based on a survey that was sent to every LFP household in November 2024. Maintaining our police department to ensure public safety and security was identified as the highest priority of LFP residents completing the survey. Here is a link to the complete survey results.

How much money will Prop 1 raise?

Revenues from Prop 1 will be approximately $1.247M for each of the next six years.

How much will Prop 1 cost property owners?

Prop 1’s temporary levy lid lift would be an increase of 22 cents per $1,000 valuation. The average LFP house has a valuation of $963,000 which would be an annual increase of $211.86 or $17.66 per month.

Here’s a link to calculate your own home using the city's levy lid lift calculator.

How long will the property tax increase last?

Prop 1 will expire after 6 years, then the property tax rate will go back down as if Prop 1 never existed.

How can people on fixed incomes afford to live in LFP when property taxes keep going up?

Seniors, disabled persons, and disabled veterans can apply for tax exemptions and deferrals. Basic qualifications:

Own the home you live in
At least age 61 or disabled by December 31 of the preceding year
Max household income of $84,000

Learn more about this on the King County Property Tax exemption site.

Were all the City Councilmembers in favor of a temporary levy lid lift?

Yes! The councilmembers unanimously supported the decision of a temporary levy lid lift, though there were differing opinions as to the exact amount of increase. Ultimately, the council decided that $0.22/$1000 was the appropriate rate in order to pay for the significant increases in public safety costs and avoid drawing too much down on one-time general fund revenues that we won’t get back.

Check out the full council discussion starting around the 1:07:30 mark: June 25, 2026 council meeting

The city has plenty of revenue from traffic cameras. Why do they need this levy too?

State law is clear that traffic camera revenue can only be spent on road and pedestrian safety improvements. The city can spend it to build more sidewalks or walkways, which is a worthwhile goal. But it can’t be used to fund 911 dispatch, crisis response services, and Police Department salaries and equipment.

My home assessment went up a lot this year and will probably keep going up. Doesn’t that mean I’ll keep paying more for Prop 1 each time it goes up?

No. The total amount of taxes that the city collects each year from Prop 1 will be approximately $1.2 million regardless of what happens to your individual assessment. This is one of the most confusing parts of property taxes, so let's break it down.

How Property Tax Rates Actually Work:

The city determines how much total revenue is needed to come from Prop 1 and the tax rate is then set based on all property values combined. Over time, if property values go up across the city, the rate will automatically go down to keep the city's total revenue the same.

The Bottom Line:

Your assessment increase doesn't make Prop 1 more expensive
Prop 1 costs the same whether your home valuation goes up 2%, 20%, or whatever
The city collects $1.2M through Prop 1, spread across all properties proportionally

We already have police and 911 service. Why do we need more funding for public safety?

Yes, we have these services today, but they're currently being funded by drawing down our reserves - and that's not sustainable. Here's what's actually happening:

The Current Situation: Public safety costs have increased over $700,000 in just the last two years due to inflation and rising contract costs. Meanwhile, our revenue can only grow by $34,500 annually under state law (the 1% limit). The city is covering this gap by using one-time reserve funds.

Why Reserves Aren't the Answer: Think of reserves like your emergency savings account. Using them to pay recurring monthly bills means they won't be there when you really need them - like when the bomb cyclone hit and FEMA denied our reimbursement request. Reserves should be saved for true emergencies and unexpected crises, not ongoing operational costs that happen every single year.

Won’t funds from Prop 1 just free up other funds for different projects?

No, Prop 1 doesn't fund new services or free up money for other projects. It’s designed to fill the gap between what public safety actually costs and what the city can currently afford under the 1% revenue growth limit. Without Prop 1, the city has to keep drawing on reserves to cover these increased public safety costs.

Prop 1 proceeds are legally restricted to public safety expenditures and will be directed specifically to address the deficit created by dramatic increases in public safety costs - 911 dispatch (up 196%), jail space, court costs, and police services.

The Budget Reality:

Public safety costs increased over $700,000 in the last two years
City revenue can only grow $34,500 annually under state law
The city is currently covering this gap by draining reserves and cutting back on services
Prop 1 stops the reserve drain and funds these services sustainably

Accountability: All city spending is public record and audited annually. You can review detailed budget documents and meeting minutes at the city website to see exactly how funds are allocated.

The Bottom Line: This isn't about expanding services or funding other projects - it's about sustainably paying for the public safety services we already have, so we can stop depleting our reserves.

What happens if Prop 1 doesn’t pass?

If Prop 1 fails, the city faces difficult choices:

Continue draining reserves - Eventually they run out, leaving us vulnerable to emergencies and unanticipated costs
Reduce public safety services - Fewer police hours, slower emergency response times
Contract with King County for police - This option has been very unpopular with residents who value our community-connected police department

What Prop 1 Does: Prop 1 stops the drain on reserves and funds public safety services sustainably for the next 5 years, keeping our financial position strong and our reserves available for actual emergencies.