Mayor Mike Rosen presented a draft 2025 budget Tuesday, including plans for a levy next year to address a $13 million deficit.
EDMONDS — Under a proposal presented by Edmonds Mayor Mike Rosen on Tuesday night, the city would need to cut 46 positions to help balance its budget.
That’s only the beginning.
Over the next year, the city would need to take out an internal loan of $7.5 million, annex existing fire services into South County Fire by the end of the year, furlough nonunion staff for 12 days and pass a levy lift to balance a $13 million deficit, said Rosen and acting Finance Director Kim Dunscombe in a presentation to City Council members.
No single problem led to the city’s financial predicament, the mayor said, and no single solution will get the city out of trouble.
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“It’s going to be messy for a while,” Rosen said. “But we have a vision of where we’re going that we believe in, and I think it will serve the city well.”
Proposed cuts would eliminate the city’s beach rangers program, a city-directed summer day camp and Meadowdale Preschool. Council minutes would be scaled back, human resources staff would be reduced, the courts would lose a probation officer position, overtime would be cut down and city vehicles would be sold.
In December, the council approved spending $8 million from reserves to balance this year’s budget, as well as $6 million in one-time funding from the American Rescue Plan Act to pay for the city’s fire and emergency medical services. Even with the use of one-time funds, the council approved that budget with an $836,000 deficit.
The city also overestimated revenue by $200,000, overestimated the beginning fund balance by $550,000 and paid over $250,000 in unbudgeted payments to laid off employees, the mayor said Tuesday. Rosen said the city will adopt a number of changes to prevent these issues in the future, including using more conservative revenue projections and planning for expenses that have not been budgeted.
The city surveyed Edmonds residents to gauge their highest priorities, which included housing affordability, reducing crime and preventing overdevelopment. The draft budget would make the police department the city’s largest expense, totaling $19.7 million, or nearly one-third of the $53.3 million general fund. The city’s proposed total budget is $136.7 million.
By the end of 2025, the city would be left with just over $500,000 in the general fund, and $2.2 million in reserves. If voters choose to annex fire services into South County Fire and pass a tax levy next year, the city could pay off its $7.5 million loan in 2026, the mayor said.
The city’s main source of income is property taxes, Dunscombe said, making up nearly 30% of the city’s revenue, which can only be raised 1% per year under state law.
“This creates a revenue stagnation issue, especially when inflation and the cost of providing services increases more than 1%,” Dunscombe said Tuesday.
Rosen presented ideas for how the city could potentially increase revenue, including raising permitting fees or even allowing gambling in the city.
“Some of these would have less popularity, and not necessarily generate a lot of funds,” Rosen said. “Others might not be popular, but there’s going to be a lot of funds, but these are all opportunities that we should explore.”
The City Council will make changes to Rosen’s draft budget over the next two months and is expected to vote on it in late November.
Will Geschke: 425-339-3443; william.geschke@heraldnet.com; X: @willgeschke.