EVERETT — A $14.5 million property tax levy lid lift is one step closer to being on the Edmonds ballot in November.
The City Council voted 5-2 on Tuesday to place the levy lid lift resolution on next week’s consent agenda for final approval.
The resolution now specifies that the revenue from the levy lid lift will be restricted to police, parks, streets and sidewalks.
Council members Michelle Dotsch and Will Chen voted against moving the resolution forward, saying they support the original $6 million levy the state budgeted for in December. Both council members voted against the $14.5 million amount at the council’s last meeting.
“We have the $6 million levy led lift in our budget with actionable information included with it, and I will support that amount,” Dotsch said. “It allows us a little longer runway in order to get our fiscal house in order.”
Other council members said the increase is essential to address the city’s $13 million budget deficit.
“We’ve not been increasing taxes because of sensitivity to the community and not wanting to out-price,” council member Chris Eck said. “But at some point it’s untenable to not have to look at that, particularly when we are in a dire circumstance, and we don’t want to be like some other cities where they’ve actually had to declare bankruptcy.”
The vote came after a public hearing on the levy lid lift. Most speakers from the community opposed the levy lid lift, many citing drastic tax increases.
A $14.5 million levy lid lift would increase property taxes by about $63 per month for a median-valued home of $840,200. In April, voters approved annexation into South County Fire, raising property taxes by about $62 per month for the median household. The increase will go into effect in January.
“It’s going to hurt the people who are at the middle and lower income brackets because they’re not going to be able to absorb this extra money that they have to pay, not only for the RFA, but for these taxes,” said Edmonds resident Janelle Cass. “So if you really want to fight income inequality and disparity, I would urge you not to put this on the ballot.”
Some speakers, including Edmonds resident Elise Hill, were in favor of placing the levy lid lift on the ballot. Hill is a co-founder of Keep Edmonds Vibrant, a group advocating for new revenue sources to address the city’s budget crisis.
“It’s been very disheartening lately going into the parks with my young children and seeing all the trash, and the bathrooms are closed and there’s graffiti not cleaned up, and it seems like every toy is closed or taken out for repair,” she said. “I don’t think that is the type of city that we want going forward. I don’t think that’s the type of city that attracts new businesses and festivals and tourism.”
The levy lid lift would be a permanent, multi-year lift. State law only allows cities to increase property taxes by 1% or less per year, unless voters approve a higher increase. A multi-year lid lift would allow the council to exceed the 1% cap for up to six years, or 2031. At the end of the six years, the levy could amount to about $17 million or $74 per month for the median household.
A permanent lid lift would mean that after the six years, the levy would continue to increase by 1% or less based on the levy amount in 2031. This is different than a temporary lid lift, which would calculate increases after 2031 based on the 2025 amount. The levy lid lift would include exemptions for qualifying low-income seniors and people with disabilities.
Jenna Peterson: 425-339-3486; jenna.peterson@heraldnet.com; X: @jennarpetersonn.
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