||| FROM ELISABETH ROBSON |||
Many of us in San Juan County have noticed the same thing over the past decade: life here keeps getting more expensive.
Electric bills have climbed. Property taxes have climbed. Groceries, insurance, transportation, building materials—almost everything costs more than it used to.
Our local electric cooperative, OPALCO, has approved roughly 6% annual rate increases, with projections of continued increases in the years ahead as the utility replaces aging infrastructure like submarine transmission cables and substations.
Those increases may be necessary, but they add up. Compounded over time, they mean electricity will continue to become steadily more expensive for households across the islands. My own electric bill has doubled since I moved here just over a decade ago.
At the same time, many residents have seen their property taxes rise dramatically over the past decade, reflecting soaring property values and increasing demands on local government budgets. Now San Juan County is discussing a significant new levy for 2026, while additional levies—for schools and recreation facilities—are also being considered.
Each of these proposals may have merit on its own. But taken together, they arrive at a moment when larger forces beyond our control are beginning to push costs higher across the entire economy.
The global picture
Events thousands of miles away can have surprisingly direct consequences for a small island community like ours.
Conflict in the Middle East has already pushed oil prices higher, and energy prices ripple through the entire economy. Diesel powers trucks, ships, trains, fishing vessels, and farm equipment. When diesel becomes more expensive, transportation, agriculture, construction, and manufacturing all become more expensive as well.
That means higher prices for nearly everything we buy.
Global supply chains are also vulnerable to disruption. Modern manufacturing depends on “just-in-time” logistics, where components arrive exactly when they are needed rather than being stockpiled.
That system is incredibly fragile. It works efficiently until something breaks.
One current example of the system breaking is the Strait of Hormuz, one of the world’s most important shipping chokepoints. A significant share of global oil and gas exports passes through this narrow waterway every day. It is a major route for petrochemicals and industrial materials, including polyethylene products used to make everything from our clothes to car tires, toys, packaging, trash bags and more, and fertilizer, used to grow crops in the industrial food system. Roughly one-third of the world’s traded urea, along with significant ammonia, phosphate, and sulfur supplies, originate in the Gulf.
Sulfur is a by-product of refining heavy crude and used to produce sulfuric acid, an essential chemical for refining metals like copper and cobalt mined in countries like the DRC and Zambia. These countries rely on a steady supply of sulfur from the Gulf to do this. These metals in turn are critical for electronics, power infrastructure, and batteries.
What appears to be a distant geopolitical conflict can and will eventually show up in the price of tools, electronics, vehicles, and the cost of building local infrastructure.
The fragility of abundance
For decades we have lived in a global economy built on the assumption of cheap energy, abundant resources, and frictionless trade.
But the materials that underpin modern civilization—oil, natural gas, copper, lithium, cobalt, and many others—are finite resources extracted from a finite planet. As they become harder to obtain, the costs of the systems that rely on them inevitably rise.
The disruptions we are seeing may not be temporary anomalies. They are likely to be early signals of a more constrained economic future.
Back to the islands
San Juan County is a remarkable place to live, but it is also an expensive one.
Many residents here are wealthy enough that rising costs barely register. Their bills are paid automatically each month, and the numbers hardly matter.
But that is not the whole community.
We also have teachers, carpenters, restaurant workers, caregivers, fishermen, artists, and families raising children here. Many are already struggling to keep up with the rising cost of living.
For them, another levy or another rate increase is not an abstract policy decision; it is a question of whether they can continue to afford to live here at all. With prices rising everywhere, the cost of moving is high. Where else are people supposed to go?
A time for prudence
In uncertain times, the most responsible course, for households and governments alike, is the same: we must tighten our belts and focus on essentials.
That does not mean abandoning important community investments. Public services matter.
It does mean recognizing that economic conditions are changing and that many families are already stretched thin.
Before asking residents to shoulder additional financial burdens, we should ask whether there are ways to manage more carefully within existing resources.
Communities that navigate difficult times successfully usually do so through honesty, restraint, and cooperation.
San Juan County has always prided itself on resilience. Islanders understand better than most that living on an island requires preparation, mutual support, and a willingness to adapt.
The years ahead may test those qualities.
Now is a good time for all of us to start tightening our belts.
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Thank you Elisabeth… I was just reading an interesting article on this very subject–
The Oil Shock Is Old News. The Food Shock Is Coming. Hormuz Isn’t an Energy Story Anymore — It’s a Grocery Store Story
“Here’s what I want you to pay attention to instead: urea prices at the New Orleans hub have moved from $475 per metric ton to $579+ per metric ton in the past ten days. For context, urea spent most of 2025 trading between roughly $350 and $450 per metric ton. A move from $475 to nearly $580 in ten days is not routine volatility — it’s a supply shock signal.”
https://www.thelongmemo.com/p/the-oil-shock-is-old-news-the-food?utm_source=post-email-title&publication_id=3875648&post_id=190671600&utm_campaign=email-post-title&isFreemail=true&r=24t3av&triedRedirect=true&utm_medium=email
Thank you Elizabeth.
For Lopez residents, in addition to the SJC levy lid lift, there will be a 23 cents/$1000 property value levy for the newly formed Lopez Island Park & Recreation District on the April ballot as well.
Thank you Elizabeth.
For Lopez residents, in addition to the SJC levy lid lift, there will be a 23 cents/$1000 property value levy for the newly formed Lopez Island Park & Recreation District on the April ballot as well.
Perhaps the county could start by returning its well-compensated employees to a 40 hour work week. This is not an unreasonable request. The fixed costs of salaries, benefits, pensions, office space, equipment, and payroll taxes do not change between a 32 hour and 40 hour work week. A tremendous amount of money is being burned with this scheme.
As a DIY retiree with modest revenues from Alaska I am amazed by how quickly and thoroughly the bloom is off the rose after 20 years here.
This is a good opinion piece and timely. But for me it is beating a dead horse. May I suggest that “tightening ones belt” will do no community good. In fact reducing spending money locally only increases the dysfunction of the undiversified local economies so long addicted to summer tourism that will be declining. Carefully regulated growth in the middle class working population is lagging due to a lack of housing stock in the affordable range. Broadening the tax base and increases in business competition are necessary but almost impossible now. On SJI there is a small movement to disincorporate the Town of Friday Harbor as incredibly expensive layered bureaucracy duplicating many County functions in a slowly dying town. Leadership is good enough for staying the unsuccessful course of decades but not nearly realistic enough to cut back on the skyrocketing costs and self-serving tendencies of a government driven economy. It may well be too late to turn the corner on this self-fulfilling fate as disruptions stress our fragile systems supporting a very fragile and hardly functional economic base.
There are a few points of light and creativity emerging but not nearly enough. Just about time for most of us of moderate means to “call in the dogs, piss on the fire and head out to Bowleg”. Sad.
Ms. Robson, as usual a well founded and articulate discussion, thank you.
If I may, between Wealthy and Workers are many retirees with “fixed” incomes. My pension has a 3% COLA cap on the base amount not the cumulative amount. Consequently we have fallen well behind the 2021-2024 inflation of 21% and what was once comfortable now requires careful management.
Our recently received property tax shows an increase of 23% over 2025 while our assessed valuation only increased by 5%. Noteworthy are an assessment of 740% for “Conservation District” and voter approved tax increases of 12% for “Cemetery”, 40% for “Schools”, 41% for “Fire”, 73% for “Other” that I assume includes the Hospital District and last, but most disappointing, 102% for “Library” that we thought was a levy replacement, not a lift.
As you note these increases may be necessary, but they add up. OPACO is a good example; the Federal Government forecasts a 6.7% increase in electrical costs this year, so our local co-op is only passing on expected increases that they have no control over. Likewise their operating costs are rising and have to be passed on to members. Now, next month, comes our County Council requesting a levy lift because costs have risen and staff wages are falling behind.
But the cold hard truth is we can’t afford it, therefore the County request is DOA with us because we can’t support any more taxes, we wish it was different, but we can’t eat wishes. Elections have consequences and the 2020 election was a predictable economic disaster. All of us need to be more careful, and less partisan, with our votes in the future.
Excellent opinion, Thank you Phil, you stole my thunder! We are in an interesting period of readjustment of our own governance. While we want and desire the convenience of what we are getting, the Supply and demand of revenue has become concerning. As I transition into retirement, I’ll keep working to keep the lights on and economy flowing. It’s healthy, but it should be my option not necessity’s of survival. SanJuan Co is known as a destination attraction, sense the pandemic it’s swung even more towards Martha Stewards numbers of spread of residents. Somehow the doers that are facilitating our benefits need to survive, not just by three jobs! .
On April 4, 2025 as the “against” advocate for the Health Care District levy lift I submitted the linked article “Death By a Thousand Cuts”. One of my three articles plus a number of comments leading up to the levy lift vote.
https://theorcasonian.com/guest-opinion-death-by-1000-cuts/
The last paragraph:
“DEATH BY A 1000 CUTS
PEA PATCH: 20 Affordable townhouse rentals; new giant Food Bank building and a new giant Resource Center office. Cost $ 48 million. 50% from public sources; 30% individuals; 20% from grants and reserves. I’m not sure of what the $24 million funding from public sources consists, some new taxes?
FOOD BANK: “In 2024, grants paid for all but $30,000 worth of food we distributed. This year however, with grants drying up and the cost of food going up, the Food Bank will have to pay about $375,000 for food. To keep our doors open and shelves stocked, we rely on our individual donors more than ever. Along with our 40 volunteers, our donors make it possible to carry out our mission as we work toward achieving our mission”.
The new Food Bank in the Pea Patch plan looks similar in size to Island Market. Another good idea supported by donors but outgrowing the ability of donors? A tax agenda in the Food Bank plan?
FIRE DISTRICT LL increased from .53 to .77 for this year. Potentially another LL later this year?
COMMISSIONS: How many commissions, co-ops and other taxing agencies on Orcas island are all wanting to do great things? I lost count at about 15 or so.
Check your property tax bill, water bill, electrical bill etc. Don’t forget those that will tax the sale on your home….hope you sell in a sellers’ market!
Big ideas, big plans, big taxes.”
NEW NOTES:
I did a recount and the number of nonprofits, co-ops etc. and this time come up with around 50….but have heard there are more. Anyone have an accurate count?
By the way this LL, which only required a simple majority, passed around 61 % for and 39% against with a low turnout of 1900/4841 or 39%.
These increases typically are not geared to around the 3% COLA that governs SS etc. but, in most cases far exceed COLA. For example this LL increased from $0.415 to $0.70 per $1.000 assessed value or a 69% increase. THOSE ON SS, WHAT WAS YOUR ANNUAL INCREASE LAST YEAR? HOW ‘BOUT THOSE STILL WORKING, WHAT WAS YOUR LAST RAISE INCREASE?
Nothing changes. Every election, sometimes multiple in a year, a number of tax increases requiring a simple majority are on the ballot. With few exceptions they are voted in at around a 60 to 70% for.
RESEARCH DOCUMENTS, DECIDE FOR YOURSELF AND VOTE
Bob, you note the requirements for the food bank indicating many people are in need and struggling to pay for food.
I mentioned in my article how sulfur is exported as a by-product of oil refineries around the planet to refine into sulfuric acid for mining. Along with copper, silver, gold, lithium, etc. it’s also used to refine raw phosphate rock into plant-available fertilizer. The natural gas and urea shipped from the Gulf is used especially across Asia and Africa to make nitrogen from fertilizer. (NPK, the N and the P) Sulfur refining into sulfuric acid requires diesel fuel (in short supply since the heavy crude from the Gulf is no longer shipping) and natural gas (20% global supply reduced due to the shipping stoppage), and the Haber-Bosch process used to make nitrogen requires natural gas , coal, and oil.
Roughly 35% of fertilizers and their ingredients pass through the Strait of Hormuz.
Unfortunately, an industrial food system is required to feed 8.2 billion on a massively overpopulated planet. That system is utterly dependent on oil and gas via sulfur and phosphate and nitrogen, and that system in the northern hemisphere requires fertilizer NOW. Even in the southern hemisphere, the deadline is coming up soon: Australia requires large amounts of fertilizer by June for wheat, barley, and canola winter crops.
All of this has raised fertilizer prices across the world considerably, which will of course raise food prices considerably. The food bank issue is probably going to get a lot worse.
Another interesting price increase we may see is pharmaceuticals. A large proportion of pharmaceuticals in the US are supplied by India, and a large proportion of those are derived from petrochemicals… oil and gas… from the Gulf.
Global trade is an exceptionally fragile system. It is fascinating to see where it breaks in crisis.