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The Lynnwood City Council is set to hold a work session Monday, Nov. 17 to continue critical financial discussions regarding the 2025-2026 biennial budget, including a potential 53% property tax increase and major mid-biennial budget amendments. The Council will also review the City’s code on dangerous animals.
Property taxes
The council is scheduled to review a 2026 property tax levy ordinance that proposes a 53.5% increase over 2025 to collect the full levy amount permitted under state law, if approved. State law mandates that cities certify their levy by the end of November.
The ordinance proposes the City collect the full $11 million allowed under state law for 2026, a $3.8 million increase over the 2025 levy. For an average home this will increase property taxes by $209 annually, or $17 monthly. The move comes just almost a year after the Council approved a 52% property tax increase.
The council will also review an ordinance outlining mid-biennial amendments to the 2025-2026 budget. These modifications are required by state statute to adjust for significant items that were not anticipated when the biennial budget was adopted in November 2024.
Budget amendments
Key amendments proposed for the General Fund include:
- Reduction in fleet charges: Vehicle replacement lifecycles are being extended, which will reduce charges to general fund departments by $1.3 million.
- Increased legal costs: Contractual fees for prosecution and indigent defense are increasing by $351,100 due to industry-wide wage increases and revised Washington State Bar Association standards.
- Grant funding: The criminal justice fund is seeing a significant increase in revenue, including four grants totaling $3.2 million.
Overall, the proposed mid-biennial budget amendments total $8.8 million in revenue increases and $9.7 million in additional expenditures. Final adoption of the ordinance is scheduled for Nov. 24.
Revenue sources
The council will also continue its discussion regarding potential revenue sources for the 2026 general fund. Potential options include:
Utility taxes: Staff presented an option to increase the utility tax rate on water, sewer and surface water from the current 6% to 10%. This 4% increase could generate an estimated $1.9 million annually. The Lynnwood rates have been unchanged since 2014, while the average rate among comparable cities is over 10% for water, sewer and surface water.
Business licenses and fees: Potential increases in business license fees, generating from $50,000 on the lower end from base fees up to a maximum of $600,000 in full-time equivalent fees.
Development permit fees: Potential increases could yield an estimated $250,000 to $750,000.
Dangerous animal code
Lynnwood Police Chief Cole Langdon and Commander of Special Services Justin Gann will lead a discussion on amendments to the City’s code on dangerous animals. The review was requested by Councilmember Patrick Decker earlier this year.
In a review of City code, the police department found that the existing code offers a “clear and structured legal framework” and is “substantively sound” for managing public safety risks.
Suggested edits include:
- Updating the definition of “severe injury” to mean physical injury resulting in broken bones or lacerations requiring multiple sutures or cosmetic surgery.
- Expanding the criteria for a dangerous animal declaration to include animals previously found potentially dangerous that aggressively bite, attack, or endanger a domestic animal (in addition to a human).
- Considering adding specific restraint requirements for potentially dangerous animals, such as mandatory fencing at least 6 feet high or full enclosure, similar to the code used in Bothell.
Finally, Finance Director Michelle Meyer and Public Works Director Jared Bond will review proposed updates to City code regarding utilities. The purpose of these updates is to align the code with current practices, summarize utility fees and establish a current framework for an upcoming utility rate study.
View the meeting agenda here.
The meeting is scheduled for 6 p.m., Monday, Nov. 10 at Lynnwood City Hall: 19100 44th Ave. W. It will also be livestreamed on the city’s website and Zoom.
— Contact Ashley at ashley@myedmondsnews.com.
The mayor, who is an accountant just doesn’t understand you can’t get blood out of a turnip. She thinks everyone has unlimited money. This has to stop. She needs to stop giving away tax free development and take off the rose-colored glasses. When more businesses close because of people not spending money maybe the council who voted for the increase will see what is actually happening. Eastern Washington is looking better all the time for property values.
Do not increase property taxes and/or utility rates. The reason – affordability –should be obvious. This solution does not increase the likelihood that people who work in Lynnwood can afford to live here. Please throw this situation over the wall to the newly elected mayor and city Council members who may have better ideas about confronting this problem. At a recent meeting, they had some interesting ideas, such as establishing a weekend Lynnwood market.
You got thousands apartment units tax free tax them first this is getting stupid
Nothing like taxing people out of their homes!!
Tax upon tax upon tax.
Dont even get me started on utility costs.
You have more and more people moving into the area and STILL we are taxed up the *ss.
STOP!
Work within your budget just like the rest of us have too.
Find another way.