City Council reviews Lynnwoods 9.4 million deficit

Lynnwood's City Council revealed a $9. 4 million budget shortfall expected through mid-2025, leading to proposed spending cuts including a hiring freeze and staff furloughs. Finance Director Michelle Meyer reported that sales tax revenue is down 9% due to stagnant economic growth, particularly in construction. Mayor Christine Frizzell urged city departments to limit their spending to 25% of their budgets in light of the financial challenges. The council discussed holding cash from maturing bonds instead of reinvesting it, as a measure to improve cash flow.

Meyer noted that the previous biennium's surplus allowed for conservative budgeting, but unexpected economic recovery led to a deficit. The police department's intergovernmental services expenditures exceeded the 25% spending cap due to lump-sum payments. Frizzell highlighted the importance of scrutinizing costs to address the projected shortfall. The city must navigate these financial hurdles while balancing essential services and community needs.