Budget presentation spells out big cuts for Everett amid deficit

EVERETT — Amid a looming $12.6 million budget deficit, Everett city officials presented a preliminary look at sweeping budget cuts that would affect multiple departments throughout city government, from deferred street maintenenace to library hours.

Some of the proposed cuts were permenant, like labor reductions through layoffs and furloughs. Others were temporary, such as suspending contributions to police and fire LEOFF 1 pension funds in 2025 — pension plans for law enforcement officers and firefighters hired before Oct. 1, 1977 — and a dramatic reduction in street overlay projects over the next year.

City Finance Director Heide Brillantes said layoffs would affect the council and mayor’s office, internal support services, city communication, economic development as well as parking and code enforcement. The cuts would eliminate the city’s park ranger program, delay custodial services and reduce library hours. Cuts would also suspend an arts and culture grant program and reduce the budget for playground and park repair.

These cuts, the city said, would lead to a balanced budget in 2025, but the forecast for upcoming years predicts deficits increasing each year, with another $6.8 million deficit predicted in 2026, increasing to $32.9 million by 2030.

“Our budget challenges are not over,” Brillantes said. “Even after making multiple reductions for 2025, many of which are permanent reductions, the imbalance between revenues and expenditures is persistent.”

The balancing measures presented at the meeting were preliminary, Everett Mayor Cassie Franklin said, because layoffs and city buyouts still need to be finalized. Next month, she will present her final budget to the City Council, which will vote on it in December.

Brillantes attributed the need for cuts to a 1% limit on annual property tax increases, an expansion of city services due to population growth and the increased costs of goods and services. A ballot proposal that would have increased city property taxes by 44% — a proposal the city claimed would solve the deficit for three years — was voted down in August. The proposal’s detractors accused the city of overspending.

The mayor said unallocated funds from the American Rescue Plan Act of 2021, known as ARPA, could be used to help plug the holes in the 2026 budget. There isn’t much more the city can cut, she said.

“The cuts we made this year, I can’t forsee any way of doing that again next year,” Franklin said at the meeting. “We are cutting deep, we are cutting programs, we are cutting staff, and sustaining most of those cuts into next year, and we still have a deficit. I believe we will be backed into a corner next year without a revenue solution, and need to use ARPA funding to close the gap.”

In a survey conducted by the city presented Wednesday, residents listed neighborhood group support, parking enforcement and business support as the areas they felt were most accepting to see cuts.

Will Geschke: 425-339-3443; william.geschke@heraldnet.com; X: @willgeschke.