Everett council raises taxes, fees to balance budget

EVERETT — Residents of Everett will pay higher utility taxes starting Jan. 1.

That increase is among measures the City Council enacted Wednesday night to help erase a $13 million deficit in 2015.

The utility tax hikes and other revenue measures approved Wednesday will be paired with cuts to city services, which Mayor Ray Stephanson can make without council authority.

The city expects that the tax and fee increases will raise revenue by about $6.5 million. Cuts will reduce the deficit by about another $3 million.

Another $3.7 million in unspent money from 2013 will bring the 2015 budget into balance.

ADVERTISEMENT
0 seconds of 0 secondsVolume 0%
Press shift question mark to access a list of keyboard shortcuts
00:00
00:00
00:00
 

The proposals have met with some resistance among council members and the public. Among others raising objections were Judy Tuohy, director of the Schack Art Center, who is hoping to unseat Councilman Rich Anderson in November’s election.

With Everett’s low average income compared with other Snohomish County cities, Tuohy said, the tax increases would be felt acutely, especially among the city’s poorest residents.

Councilwoman Brenda Stonecipher, who has questioned the openness of the budget- balancing process, said the city should cut spending more before raising taxes.

“A utility tax is about the most regressive tax you could choose,” Stonecipher said. “It impacts poor people more than it impacts people on this dais.”

Council President Jeff Moore agreed with her in principle but asked Stonecipher for examples of less-regressive taxes the council could act on.

“I’d love to have non-regressive taxes, but I don’t know how to get there,” Moore said.

The utility tax measure passed on a 4-3 vote, with Stonecipher and Councilmen Ron Gipson and Paul Roberts voting against it.

Stonecipher was the lone vote against raising business license fees, saying it would be too great a burden for small businesses.

Other tax and fee-raising measures passed the council unanimously, although some of them will not go into effect until next year.

The largest source of new revenue for the city is going to come from higher taxes on electricity, telephone service and natural gas, with rates rising to 6 percent from 4.5 percent. That is expected to bring in $3.2 million in 2015.

New taxes for cable and garbage service — starting at 2 percent in 2015 and increasing to 4 percent in 2016 and 6 percent in 2017 — will bring in another $877,000.

The new rates for all utilities will go into effect Jan. 1.

Other measures enacted Wednesday night include:

*Creation of a taxing district to impose a $20 car license fee, which will bring in $1.5 million.

*Raising business license fees to $75 from $10 and adding annual renewal fees of up to $75 ($465,000).

*Increasing traffic mitigation fees for development to $2,400 from $900 ($333,000) — effective Jan. 1.

*Requiring parking tickets be paid before vehicles are released from impound ($50,000).

*And raising land use permitting and review fees ($45,000) — effective Jan. 1.

On the expense side, Stephanson’s administration is proposing to cut 15 employee positions, eliminate the Library Outreach Program (including the Bookmobile) and eliminate lifeguards at Silver Lake Beach. Those and other measures will save about $3 million.

Stephanson also announced at the start of the meeting that he has decided not to extend the date by which the city would completely fund pensions for retired firefighters and police officers.

Everett will continue to wrestle with revenue shortages in coming years, with future fiscal year deficits reaching $21 million by 2018. The city plans to looks for savings in several departments, starting with the Fire Department. Changes to pay or benefits, though, would require negotiating with labor unions. And it is unclear what savings might ultimately result.

Chris Winters: 425-374-4165; cwinters@heraldnet.com.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

Cars drive along Cathcart Way next to the site of the proposed Eastview Village development that borders Little Cedars Elementary on Wednesday, May 7, 2025 in unincorporated Snohomish, Washington. (Olivia Vanni / The Herald)
Former engineer: Snohomish County rushed plans for Eastview development

David Irwin cited red flags from the developers. After he resigned, the county approved the development that’s now stalled with an appeal

Outside of the Madrona School on Monday, Aug. 26, 2024 in Edmonds, Washington. (Olivia Vanni / The Herald)
Sewer district notifies Edmonds schools of intent to sue

The letter of intent alleges the school district has failed to address long-standing “water pollution issues” at Madrona K-8 School.

Everett
Man stabbed in face outside Everett IHOP, may lose eye

Police say the suspect fled in the victim’s car, leading officers on a 6-mile chase before his arrest.

A person walks up 20th Street Southeast to look at the damage that closed the road on Wednesday, Nov. 20, 2024 in Lake Stevens, Washington. (Olivia Vanni / The Herald)
WA delegation urges Trump to reconsider request for bomb cyclone aid

The Washington state congressional delegation urged President Donald Trump on… Continue reading

Aaron Weinstock uses an x-ray machine toy inside the Imagine Children Museum on Tuesday, Dec. 3, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Imagine Children’s Museum $250k grant reinstated following federal court order

The federal grant supports a program that brings free science lessons to children throughout rural Snohomish County.

Snohomish County 911 Executive Director Kurt Mills talks about the improvements made in the new call center space during a tour of the building on Tuesday, May 20, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
New 911 center in Everett built to survive disaster

The $67.5 million facility brings all emergency staff under one roof with seismic upgrades, wellness features and space to expand.

Everett
Five arrested in connection with Everett toddler’s 2024 overdose death

More than a year after 13-month-old died, Everett police make arrests in overdose case.

Madison Family Shelter Family Support Specialist Dan Blizard talks about one of the pallet homes on Monday, May 19, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Madison Family Shelter reopens after hiatus

The Pallet shelter village, formerly Faith Family Village, provides housing for up to eight families for 90 days.

DNR removes derelict barge from Spencer Island

The removal was done in partnership with state Fish and Wildlife within a broader habitat restoration project.

(City of Everett)
Everett’s possible new stadium has a possible price tag

City staff said a stadium could be built for $82 million, lower than previous estimates. Bonds and private investment would pay for most of it.

Jennifer Humelo, right, hugs Art Cass outside of Full Life Care Snohomish County on Wednesday, May 28, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
‘I’ll lose everything’: Snohomish County’s only adult day health center to close

Full Life Care in Everett, which supports adults with disabilities, will shut its doors July 19 due to state funding challenges.

A member of the Sheriff's office works around evidence as investigators work the scene on 20th Street SE near Route 9 after police shot and killed a man suspected in a car theft on Friday, Jan. 13, 2023, in Lake Stevens, Washington. (Ryan Berry / The Herald)
Family of Lake Stevens man shot by police sues over mental health care delays

Lawsuit says state failed to evaluate James Blancocotto before he was shot fleeing in a patrol car.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.