City of Edmonds - Washington

Several factors have contributed to the current situation, including: 

• Property tax is limited to 1% growth per year 
•  Inflation has outpaced the city’s growth in revenues
• Higher costs for things such as insurance policies – up 39%
• Delays in addressing streets, sidewalks, building and parks maintenance, creating a significant backlog
•  Increased service demands – law enforcement, use of parks
• Competitive hiring environment for city staff 

• The city has cut 48 staff positions (2024-2025)
• Drawn down operating reserves over multiple years
• Borrowed $6 million internally
• Deferred millions of dollars of maintenance and repairs
• Cut programs and services
• Introduced new revenue sources while continuing to actively pursue new sources
• Introduced priority-based budgeting
• Made investments in financial tracking and reporting software, practices and procedures   
• Focused on implementing the citizen Blue-Ribbon Task Force’s recommendations for long-term fiscal sustainability

It is largely funded by property tax and sales tax. Other sources include utility taxes, fees, permits and state and federal grants, which may be restricted funds. This chart shows revenues that support the city’s general fund. 

The city has looked at three potential scenarios:

Scenario 1: A November 2025 Levy Lid Lift, in the amount of ~ $6 million, as was included as a placeholder in the biennial budget. This scenario requires decreased service levels, continued deferred maintenance and ongoing financial strain. 

Scenario 2: The city weighs comparable cities, determines the cost of service to respond to public expectations, takes advantage of work done by the public (such as the Blue-Ribbon Task Force) and puts forward a package of revenue source options, which includes a levy. This was presented to City Council on June 3. See the presentation here.   

Scenario 3: The city has identified the impacts if a levy lift fails. This would involve significantly deeper cuts to existing city services. See next question for more details. 

The city would need to find $8 million - $6 million from the failed levy and an additional $2 million in cuts as directed by the City Council. In a June 5, 2025, resolution these were among the cuts identified: 

Cuts to Parks & Recreation maintenance –Recreation programming would be eliminated at the Frances Anderson Center. Yost Pool would close. Trash and litter pickup would cease, and restrooms would close. Special event support would be eliminated for the Summer Market, Edmonds Arts Festival, July 4th parade and other events.

Police reductions – Response times would be longer, based on lower staffing. Property crime investigations would be limited, and proactive community engagement would be reduced. The Human Services program would be eliminated.

Elimination of Cultural Services – The Edmonds Arts Commission city liaison and performing arts programs would be cut. Maintenance of public art and support to the creative district program also would be eliminated. 

Near-Elimination of Planning & Economic Development – Economic development, tourism, public information and intergovernmental relations would be eliminated.  

Public Works cuts – Buildings would continue to deteriorate, and road maintenance would be limited. Safety issues would increase with street potholes and cracks, and poorly maintained sidewalks.

Yes. A package of potential additional revenue sources has been identified. During recent City Council meetings, staff and the council estimated potential revenues of about $5 million. Most of these revenue sources would require a public process and council action. The bulk of these revenue sources fall into one of three areas: 

• Operations revenue 
•  Long-term economic resiliency measures
• Non-property taxes

Some of the measures under discussion, for example, include a Public Safety sales tax, business and operation tax, traffic cameras, parking revenues, and city fee adjustments for permits and applications.

 The City Council and staff will need to establish a process to prioritize, review and potentially adopt various revenue sources. While some measures are more easily adopted over a shorter term, other revenue sources may take several years to implement.