Edmonds property taxes likely to rise as city faces budget shortfall

A $2.2 million budget shortfall has led the Edmonds City Council to unanimously approve a 1% property tax increase.

According to estimates, the hike will mean property taxes will go up $35.49 yearly on an $800,000 house.

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At a marathon meeting Wednesday night, the council also approved a 1% increase in the emergency medical services (EMS) property tax levy — which will cost an average residence $2.40 annually. The EMS revenues may be used only to provide emergency medical care or medical services, including related costs.

The city said it will also collect “banked capacity” funds — property taxes not collected in the past. The effect on the tax bill for an individual property depends on several factors, including the property’s value.

City records show the city can collect about $600,000 in banked capacity.

“We’re here now because we’re having record inflation. We’re not immune to inflation,” Dave Turley, the city’s administrative services director, said in a council meeting last week. “It’s not bad management by council and approving bad budgets; it’s not bad administration. Our revenues haven’t increased because we haven’t taken action to increase our revenues.”

Although property taxes represent a significant source of funding for city services (approximately 36%), the portion of each property owner’s tax bill that is distributed to the city is approximately 14.6%. In 2020, the total property average tax rate in Edmonds was $9.14 per $1,000 of assessed valuation, with $1.33 (per $1,000 assessed valuation) going to the City of Edmonds.

Despite record revenues in 2023, the city will take the $2.2 million from reserves.

“I don’t see we have a choice at this point,” council member Dave Tietzel told The Everett Herald.

Both ordinances are set for final approval at a council meeting on Nov. 6.

Election Day is Nov. 7.