Proposition 1 has failed in Edmonds. What’s next?

EVERETT — With a $14.5 million property tax levy lid lift set to fail in Edmonds, city officials are scrambling to figure out next steps to balance the budget.

As of Friday’s ballot drop, Proposition 1 was failing with only 41% of votes in favor. The result will likely lead to drastic reductions in city services.

The vote comes shortly after residents approved annexation into South County Fire in April, which will raise property taxes by about $65 per month for the median homeowner starting in January. Proposition 1 would have raised property taxes by the same amount and also would have gone into effect in January. While proponents of the ballot measure said it was essential to keep city services, opponents were concerned about large property tax increases.

“The levy’s failure presents significant challenges for our city and our employees,” Edmonds Mayor Mike Rosen said in a statement to The Daily Herald. “My priority is to work collaboratively with City Council, our community, and staff to make thoughtful and responsible decisions that align our operations with available resources. We are committed to ensuring our path forward reflects the priorities expressed by voters.”

In its 2025-26 budget, the city originally planned for a $6 million levy. In July, the council voted 5-2 to place a $14.5 million levy on the ballot after hearing recommendations from community members, staff members and Rosen. When Rosen presented his recommendation for a $19 million levy, he said $6 million wouldn’t be enough to see an improvement in city services.

In June, the council unanimously passed a resolution outlining cuts that would be “immediately implemented” in 2026 if property tax revenue was $6 million less than originally budgeted. The resolution details about $8.6 million in cuts to police, parks and more.

“The earlier resolution identified potential impacts, but we are still exploring cuts and other revenue opportunities,” Rosen said.

City Council and department leaders will meet Nov. 14 to review potential budget adjustments, he said. Then, the council will continue to discuss and pass an updated mid-biennium budget by the end of the year.

According to the resolution, the city could reduce police services by more than $3.6 million. This would reduce patrol staffing to minimum contract levels and eliminate certain units — including animal control, traffic, special operations, community engagement and the domestic violence coordinator. The city estimated laying off seven commissioned staff and three civilian staff.

“911 calls will be prioritized,” the resolution read. “All non-priority services (animal complaints, parking, proactive homeless work, non-crime issues, property crime calls) will be handled as time and resources allow. Only the most severe cases will be assigned to detectives for follow-up.”

The parks budget could be reduced by more than $1.87 million. It would result in the closure of Frances Anderson Center for recreation programming and the complete closures of the City Park Spray Pad and Yost Pool. Other parks reductions include holiday lights downtown, vegetation management and special events support — including for the city’s summer market, arts festival and 4th of July parade. Up to 11 parks and recreation employees could lose their jobs. It would be a 33% cut to the parks department budget following a 25% cut last year.

“When we think about the future of our city and what attracts a new generation of residents to a city, oftentimes it is parks and the services that come along with them,” said Adel Sefrioui, an officer for Yes For Edmonds, in a September interview. “A lot of the things that make Edmonds really special would go away.”

The Human Services Division — which connects more than 400 residents to services each year — could be completely eliminated, along with the Cultural Services Program, which maintains public art and manages creative district grants and marketing.

The city could reduce the Community Services and Economic Development department by 74%. This would include tourism programs, the city’s public information officer and intergovernmental lobbying. The department would be reduced to one staff member and would “effectively cease to function,” the resolution said.

Other possible reductions include the city council’s legislative executive assistant, street and facility maintenance, Edmonds Stream Team funding and reserves for speciality legal support.

Last year, as part of the 2025-26 budget, the city eliminated 62 positions, either through layoffs or not hiring for vacant positions. Combined with hour reductions and furloughs, the staffing changes totaled $7.7 million. The city also took out a $6 million interfund loan, anticipating the levy would pass, Rosen said.

At the time, Edmonds was facing a $13.5 million deficit. Now, Rosen said, the city’s financial challenges “go much higher.”

“With rising costs and the inability to raise the property tax more than 1%, we are still facing a significant deficit for this and future years,” he said. “We are required to keep reserves at a certain level, we are currently millions below that level. Not to mention the multimillion-dollar backlog in critical infrastructure, including facilities, roads, parks, and sidewalks.”

The city will continue looking at new sources of revenue, “strategic cost reductions” and community partnerships, Rosen said.

“We want the community to know that we hear you, and we remain deeply committed to transparency, fiscal responsibility, and maintaining essential services,” he said. “We understand that these are difficult times, and we thank residents for their patience and engagement. As decisions are made, we will communicate them with our residents.”

Jenna Peterson: 425-339-3486; jenna.peterson@heraldnet.com; X: @jennarpetersonn.