Budget breakdown What to know about Lynnwoods looming 10.7M deficit

Lynnwood projects a $10. 7 million budget deficit for 2025, driven by a $21. 3 million shortfall in revenue expectations. Mayor Frizell announced plans to reduce staff and services, despite a significant 52% increase in property taxes in 2024. The city council amended public hearing rules, addressing remote attendance and speaker time limits, as part of broader governance changes.

Local revenue sources, particularly sales tax, permitting fees, and court fines, have underperformed, leading to a forecast of zero growth from 2024 to 2025. The mayor's proposed cuts include a hiring freeze, reduced seasonal staffing, and limitations on travel and training expenditures. As developers pause or cancel projects, the city faces increased financial pressure. The council's actions are under scrutiny, with local elections for the mayor and four council seats approaching. These budgetary issues reflect a broader trend of economic uncertainty impacting municipalities nationwide.