EDMONDS — Edmonds Mayor Mike Rosen presented a budget update to community members at the Edmonds Waterfront Center on Tuesday as the City Council begins work on mid-biennium adjustments.
The Edmonds City Council passed the city’s 2025-26 budget in December 2024. The City Council plans to pass a modified budget by mid-October with updated revenue and expenditure figures for 2025 and 2026. Tuesday’s presentation included the administration’s proposal for mid-biennium budget changes.
Key to addressing the city’s $13 million shortfall are two ballot measures. In April, Edmonds voters approved annexation into South County Fire, saving the city $6.5 million. In November, voters will decide whether to approve a $14.5 million property tax levy lid lift.
For planning purposes, the proposed 2026 budget assumes voters will approve the levy, Rosen said. The council has stated that, if approved, the revenue from the levy would go toward police, parks, planning, streets and sidewalks. If the levy isn’t approved, the city would need to find about $12.6 million in additional revenues or expenditure reductions. The levy would increase property taxes by about $63 per month for the median homeowner in Edmonds.
In December 2024, the city budgeted for a $6 million levy, so the modified budget proposal includes an $8.5 million increase in property tax revenue for 2026. Other increases include a public safety sales tax the council passed in August, automated enforcement, potential parking fees and additional grants. The modified 2026 budget proposal also includes an estimated $1.3 million decrease in sales tax revenue after lower-than-expected revenues this year.
Rosen also proposed adjustments to expected expenditures for 2026, including increases in insurance, jail costs and medical benefit costs. The planned budget would result in an about $3 million ending general fund balance for 2026.
For 2025, Rosen proposed significant adjustments to revenue projections, including a $900,000 reduction in sales taxes and $227,000 less in automated enforcement revenue from delayed installment.
The city of Lynnwood is also facing a budget shortfall, largely stemming from lower-than-expected sales tax and red-light camera revenues.
“We’re not alone,” Rosen said. “Every city in the region is facing this problem. Seventy-five of the biggest cities in the country couldn’t pay their bills last year. This is not an Edmonds problem. This is structural problem that many of us face.”
The City Council will hold a public hearing on the mid-biennium budget Tuesday. It plans to approve any modifications Oct. 14.
Jenna Peterson: 425-339-3486; jenna.peterson@heraldnet.com; X: @jennarpetersonn.
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