City of Everett finds trims to mend budget hole

Everett's city budget faces a $12. 6 million shortfall for 2026, despite a reported increase in revenues. Proposed measures include reallocating $4. 85 million from COVID recovery funds and suspending contributions to police and fire pension funds to cover operational costs. Assistant Finance Director Jamielee Graves highlighted that general government revenues outperformed projections by $2.

1 million as of July 2025, driven partly by a 5. 4% rise in business and occupation tax revenues. However, significant revenue sources like construction and retail experienced declines, with construction down by 14. 6%. The city plans to cut $1 million from a street project and reduce human needs grants by $308,800.

Finance Director Heide Brillantes explained that suspending pension contributions will lead to larger payments in the future to maintain funding targets. Despite these efforts, a looming $7. 9 million deficit remains for 2026, prompting ongoing discussions about potential cuts. The financial situation reflects broader economic challenges faced by cities as they navigate post-pandemic recovery.