Lynnwood council unanimously approves tax increment financing to fund city projects

Lynnwood City Council unanimously approved an ordinance to implement tax increment financing (TIF) as a strategy to fund city projects by pooling property taxes generated from new developments. The meeting also addressed a request for continued funding of a diversion program and provided updates on local housing issues. Additionally, the council proclaimed June as LGBTQ+ Pride Month, though representatives from Lynnwood Pride expressed disappointment over the city's lack of support for their upcoming event. Phil Lipson criticized the council for denying their request to fly a Pride flag in Wilcox Park, highlighting the contrast with last year's support. The TIF program will contribute approximately $24 million towards three significant public infrastructure projects, costing a total of $66 million.

The financing will primarily come from Limited Tax General Obligation bonds, expected to be issued between 2027 and 2030. Washington's Office of the State Treasurer has already approved the city's project analysis, allowing the next steps in financing. However, there may be concerns about TIF revenues covering early debt service costs due to development timelines and potential tax exemptions.