Not many people in our community have heard the term “Local Improvement District,” or LID, and probably don’t know what it means. I’d like to offer a plain-language explanation and a very simple real-world example to help people understand how this process works and how it can affect property owners. This is a heads-up for every resident in the Town of Friday Harbor. Life is busy and full of distractions, and keeping up with local government may feel burdensome, but we all need to start paying attention.

A Local Improvement District (LID) is a tool that towns and cities use to fund public projects like sidewalks, roads, or stormwater systems that benefit a specific area. The cost of the project is shared by the property owners within that area, since they’re the ones who directly benefit. Instead of paying everything up front, owners can spread out the cost in installments, similar to a loan with interest.

Let’s say a neighborhood floods every time it rains because the storm drains are old and failing, or were never properly installed during the original development. As a new way to fix an old problem without sourcing traditional funds, the town proposes a new stormwater system just for that area—new pipes, drains, and filters to handle the runoff. The total project might cost $80,000, and if there are 8 homes in that area, each one would be expected to pay $10,000. The boundary around those 8 homes becomes the proposed LID.

Property owners will receive notices, and the town will hold a public hearing. If enough people protest, the project can be stopped. Specifically, from what I understand, if owners representing more than 60% of the total property value within the proposed LID formally object, then the project cannot go forward.

At a recent town council meeting, they discussed the idea of LIDs, beginning with an upcoming session to learn more about how they work. This conversation appears to have been prompted by ongoing stormwater issues in the Greenway development—specifically Rose Lane—where a few years ago, a developer was granted a variance to build a multi-family tiny home project. Now that developer is seeking to add additional units, and while the council seems inclined to approve, they also rightly noted that doing so could worsen the existing stormwater problem. To me, whether you’re adding a cup, a gallon, or gallons of water to an existing issue, you’re still making a known problem worse. But it looks like the politics surrounding the real need for housing outweigh foundational infrastructure problems.

Frankly, it’s troubling that this situation has even arisen. A deal is a deal, and if the infrastructure was already inadequate when the initial project was approved, the town should not be entertaining expansion without first resolving those issues. Unfortunately, this is not an isolated case. Many neighborhoods across the Town of Friday Harbor are grappling with infrastructure problems that were either never properly addressed during initial development or were approved under outdated standards with insufficient oversight.

It is deeply unfair to now propose solving these known, long-standing problems by creating new taxing districts that shift the financial burden onto current residents. The town should be held accountable for past decisions and lack of foresight. That’s why we need to stick to the rules and offer variances or rezoning only in extremely rare and justifiable circumstances. If the existing standards are too outdated or cumbersome, then revise them.  But do so through a transparent process that applies equally to all. Creating carve-outs or exceptions opens the door to unintended consequences and further erodes trust in the system.

In recent years, utility rates and property taxes in the Town of Friday Harbor have risen dramatically. What were once routine bills are now real sources of strain for many households. Layering a new taxing district like a LID on top of these already burdensome costs is not only inequitable, it’s irresponsible. Residents expect the town to maintain infrastructure across the board. The Town should not regressively segment the community into those who can afford improvements and those who cannot.

The town’s increasing financial strain is evident, but creating LIDs is not the answer. Instead, it’s time for the town to advocate at the state level for more flexible and sustainable funding mechanisms. Specifically, we need to urge them to pursue reforms that allow existing revenue streams, which are overflowing in comparison to user fees, to be redirected to support essential infrastructure needs. Let the full buckets help fill the empty ones, instead of telling residents to carry a new one.

In summary, the town should not seek to fix old mistakes or cover budget gaps by creating special taxing districts. Friday Harbor must recommit to serving all neighborhoods fairly, using broad-based resources and smart financial strategies—not through fragmented, regressive approaches that erode public trust. This means lobbying the state for support, forming partnerships with other small towns to create coalition and get creative with funding—not just raising rates and reinventing taxes.

If you agree with me, send a link to this article to our town council members. Their email addresses are linked below. And if you disagree, tell them that too. But one way or another, we need to start engaging. Council needs to know we’re paying attention and that we’re giving them permission to say no. It’s never easy for elected officials to push back against the bureaucracy they oversee. But if we back them up, through letters to the editor, direct emails, or conversations around town, they’ll be more empowered to make decisions based on long-term community values, not politics.

Jeremy Nash

Town Council email addresses:
https://www.fridayharbor.org/2200/Town-Council

More information on Local Improvement Districts:
https://mrsc.org/explore-topics/facilities/districts/local-improvement-districts#:~:text=A%20variation%20of%20the%20LID,the%20property%20owners%20within%20districts