In the closing minutes of the 2021 Legislative Session a Tax Incremental Financing (TIF) bill was passed.  The impacts to Fire Districts and Regional Fire Authorities along with library districts, hospital districts and other junior taxing districts became apparent in late 2022.  Under this law a city, port, or county can establish up to two Tax Increment Areas (TIAs) within their boundaries.  The total assessed value of the TIAs per entity cannot exceed $200 million.  A TIA can last up to 25 years. 

For taxing purposes, the value in the TIA is frozen for all junior taxing districts, cities, and ports for up to 25 years.  Any taxes collected by these junior or senior taxing districts for new construction or for increases in value in the TIA will go to the TIA to pay bonds the TIA takes out.  In Clark/Cowlitz Fire Rescue (CCFR) the City of Ridgefield has established a TIA that includes most undeveloped or under developed property within the present city limits. The present value within the TIA at the time of adoption was $116,874,132.  They will sell bonds to develop roads and other infrastructure using taxes from the TIA to pay off the bonds. 

For example, since the TIA was adopted, COSTCO has built a store within the TIA.  The 2025 assessed value of COSTCO is $21,810,600.  The TIA’s original fixed value of the property they built on was $2,211,094.  Applying CCFR’s fire and EMS tax rate ($1.9743) against COSTCO’s value, COSTCO paid $43,060 to Clark County for CCFR’s 2025 fire and EMS taxes.  Of that amount Clark County will distribute $4,365 to CCFR and $38,694 to the City of Ridgefield through the TIA.  This year’s tax statements makes it look like the tax dollars went to CCFR when over 90% of the tax dollars went to the TIA.

The Port of Ridgefield adopted a second TIA of $200 million in the southern end of CCFR and the northern end of Clark Fire District 6.  They connected their southern part of the TIA to a waterfront site TIA about 5 miles north via a road to make the entire TIA one continuous TIA.  They plan on using the TIA money from the south to develop their water front TIA 5 miles north into a business and a park on the western edge of Ridgefield.  They did this as the southern portion of the TIA will experience significant growth, while the waterfront will not grow without additional money from somewhere. 

Just within CCFR we estimate these two TIAs will cause our district to forfeit over $60 million dollars in 25 years.  We could potentially face up to 12 more TIAs because we serve three cities, two ports, and two counties. 

So, as these areas within the TIA’s continue to develop, we will be required to provide more service with no additional revenue.  At present, expected development includes one senior living center, 11 apartment complexes, 5 fast food establishments, several housing developments, Les Schwab, Tractor Supply, and on and on. 

I believe this TIF legislation negates the votes of our district taxpayers.  In 2022 over 62% (9,000 plus yes votes) of our voters supported an EMS levy to maintain and improve EMS.  In 2024 over 60% of our taxpayers voted to increase their fire levy to maintain and improve both fire and EMS services.  The TIF law allowed only as few as four out of seven city councilors or two out of three port commissioners to change our taxpayer’s votes and instead use new revenue within the TIA’s to fund non-fire and non-EMS services.  

The net effect will be that CCFR taxpayers outside the TIAs will subsidize services within the TIAs (even though those within the TIAs are still paying their fire and EMS taxes but the majority of these taxes are going to subsidize development within the TIAs).  Furthermore, with increased service demands caused by the developments in the TIAs, taxpayers outside the TIAs may have to pay even more to maintain and improve their own services.

For two years CCFR has explored ways to address this redirection of taxpayers’ money.  CCFR with others in the state were able to add a TIF amendment in the 2024 session that requires entities forming a TIA to enter into discussions to mitigate effects caused by the TIA to fire districts, RFAs, and hospital districts.  CCFR has also looked into legal challenges to the TIF and at entering into agreements with any entity forming a TIA.  CCFR is finding it very hard to plan long-term when we do not have a solid grasp on future revenues verses new response needs.

If you have concerns, questions, or are impacted by this TIF law, please feel free to contact our Chief Nohr (360-887-4609) or myself (360-887-3793).  We continue to research a manageable answer to this significant financial impact.        

 

CCFR Commissioner Larry Bartel

Published in the 2Q 2025 Fireline Newsletter