Proposed workers comp hike adds to rising city cost

The Washington State Department of Labor & Industries proposed a 4. 9% increase in workers’ compensation insurance costs for employers in 2026, compounding financial pressures on local governments. Law enforcement agencies in Lake Forest Park have faced a staggering 52% rise in rates over the past three years, with a proposed 15% increase for 2026. City Administrator Phillip Hill stated that the City is continually challenged to deliver essential services with limited resources. To address these financial challenges, the Lake Forest Park City Council plans to place a temporary six-year levy lid lift on the November 2025 ballot.

If voters approve the measure, it would help fund police staffing, training, and mental health programs, all increasingly affected by inflation. State law currently restricts the City to a maximum 1% increase in property tax revenue each year, regardless of inflation or service demand growth. Hill remarked that without additional voter-approved revenue, the City faces tough budgetary decisions that could adversely affect public safety services. For further details, the City encourages residents to visit their website or contact City Administrator Phillip Hill.