Lynnwood increased property and utility taxes, but a 4.8M gap remains How did we get here?

The Lynnwood City Council approved a 23% property tax levy increase and a 4% utility tax hike on Nov. 24 to combat an $8 million general fund deficit. This change is expected to generate approximately $2. 9 million for 2026, with the property tax hike raising the levy from $7. 2 million to $8.

9 million. Despite these efforts, a $4. 8 million deficit remains, which could result in state penalties that hinder the city’s ability to secure essential funding. Finance Director Michelle Meyer warned that further cuts may be necessary if the shortfall continues into next year. Councilmember George Hurst advocated for a reduced tax increase to allow the incoming administration more flexibility in finding long-term solutions.

The debate revealed differing opinions on the financial impact on residents, with some council members arguing that the tax increases are vital for maintaining essential services. The utility tax increase is the first since 2014, raising the average homeowner's utility bill by $7. 55 monthly. These decisions reflect ongoing financial challenges faced by the city as it navigates budgetary constraints.