Lynnwood looks to make up multi-million dollar shortfall in expected revenue

City Council members are trying to figure out how to cover a $3 million shortfall in the Lynnwood budget.

Lynnwood Mayor Christine Frizzell wrote in an email to council members that the city started 2025 with $3 million less than anticipated, The Lynnwood Times reported Tuesday.

However, the media outlet noted that during an April finance meeting, it was reported the city’s Ending General Fund Balance was $4.27 million below forecast. The Lynnwood Times contacted the city about the $1.27 million discrepancy in the reported shortfalls and is waiting to hear back.

Frizzell cited “the national environment of economic uncertainty” in her email as a reason for the shortfall, along with recent tariffs.

To combat the multi-million dollar gap, Frizzell stated in her email that the city has asked that purchases or professional service contracts be delayed.

“We have asked that some purchases or professional service contracts be delayed, and we are reviewing each vacancy and not automatically filling these vacancies in our effort to gain some salary savings,” the mayor wrote, as reported by The Lynnwood Times. “We are also closely monitoring all travel and training.”

Car sales drop main driver of Lynnwood budget shortfall

According to The Lynnwood Times, the city had projected a 14.8% increase in sales tax in April but instead saw a 25% drop.

The media outlet noted a significant drop in Lynnwood car sales, citing Trump’s 25% tariffs on imported vehicles such as SUVs, sedans, crossovers, cargo vans, and light trucks.

The Lynnwood Times also suggested Tesla vandalism may have driven away business. In March, six vehicles at a Tesla dealership in Lynnwood were defaced with spray-painted swastikas and profanity.

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