Loading...
2025-09-12 Council Special Retreat Minutes Edmonds City Council Minutes September 12, 2025 Page 1 EDMONDS CITY COUNCIL SPECIAL MEETING / BUDGET RETREAT SUMMARY MINUTES September 12, 2025 ELECTED OFFICIALS PRESENT Will Chen, Councilmember Neil Tibbott, Council President Michelle Dotsch, Councilmember Susan Paine, Councilmember Chris Eck, Councilmember Jenna Nand, Councilmember Vivian Olson, Councilmember Mike Rosen, Mayor STAFF PRESENT Todd Tatum, City Administrator Kisha Post, Finance Specialist Richard Gould, Finance Director Ludwig Marz, Interim HR Director Angie Feser, PRHS Director Mike Clugston, Planning Director Mike DeLilla, Acting City Engineer Beckie Peterson, Executive Assistant Teresa Simanton, Executive Assistant Uneek Maylor, Court Administrator Neil Neroutsos, Interim PIO Scott Passey, City Clerk 1. CALL TO ORDER/REVIEW AGENDA The Edmonds City Council meeting was called to order at 9:17 am by Mayor Rosen in the Brackett Room, 121 - 5th Avenue North, Edmonds, and virtually. The Edmonds City Council retreat focused on budget modifications, resource allocation, and operational challenges for the 2025–2026 biennial cycle, centered around the outcome of a significant $14.5 million levy lid lift on the fall ballot. Discussions included department funding priorities, long-term infrastructure needs, efficiency improvements, and the implementation of additional revenue streams to address ongoing fiscal pressures. Retreat Objectives • Understand the mid-biennial budget review process as mandated by state law. • Receive financial projections for 2025, with particular attention to recent and projected revenues and expenditures. • Discuss planning assumptions and necessary modifications for 2026. Edmonds City Council Minutes September 12, 2025 Page 2 • Build consensus on the allocation of anticipated levy funds across five primary “buckets”: police, parks, planning/development, public works (streets/sidewalks), and facilities. • Get brief updates on non-property tax revenues and meet system/process updates for city operations. Levy Lid Lift and Fund Allocation • Five Buckets: Police (~43%), Parks (~21–22%), Streets/Public Works (~14%), Facilities (~8%), Planning/Development (smaller share). • The proposed $14.5M levy lid lift builds upon an already “templated” $6M assumption in the 2026 budget. If passed, it adds $8.5M in new revenue to restore services and capacity in those departments. • Each department presented how restored funding would rebuild staffing, restore postponed maintenance, add program capacity, and support both public-facing services and background operations. • For example, Parks would restore staff to pre-cut levels, address maintenance backlog, reopen restrooms, replace aging assets, and boost volunteer coordination. • Police would sustain required public safety, replenish patrol/detective staff, invest in traffic and emergency management, and address public records/parking enforcement. • Planning would restore planners, improve permit processing, and add long-term planning and economic development roles. • Public Works would catch up on ADA ramps, sidewalk repairs, overlays, and basic maintenance currently deferred due to staff shortages. Fiscal Context and Projections • Ongoing financial stress is a central theme: staff and council consistently referenced the “deep hole” the city found itself in and the need for ongoing adjustments and strategic investments, not complete overhauls, during these reviews. • Projections for 2025 and 2026 are conservative due to softening sales tax revenue (tracking $900,000 below projections), flattening property/utility tax assumptions, and general economic uncertainty. The city's approach prioritizes flexibility, conservative revenue estimates, and the ability to revisit and amend the budget later in response to economic shifts. Edmonds City Council Minutes September 12, 2025 Page 3 Other Revenue and Cost-Saving Efforts • Staff highlighted a variety of ongoing and potential new revenue streams and efficiencies beyond property taxes: • One-tenth of one percent sales tax for public safety/criminal justice (effective January 2026). • Enhanced use and expectations from traffic enforcement cameras. • Business & Occupation (B&O) tax exploration, though the city is still researching impacts and business outreach. • Phased, small-scale paid parking implementation (apps, not meters), with predicted initial net revenue of ~$250–300K annually. • Continued emphasis on leveraging grants, optimizing utility/impact fees, and collaborating regionally for cost-sharing or economies of scale. Challenges, Constraints, and Council Concerns • Staffing Shortages & Burnout: Multiple departments, especially Public Works and Parks, are operating with historically low staff—leaving maintenance, permitting, and service capacity under strain. • Backlog of Maintenance and Deferred Projects: Facilities condition scores (C–/D in some cases) and delayed capital investments are creating future fiscal liabilities. • Request for Metrics & Data: Council repeatedly requested that staff provide quantifiable performance metrics and “return on investment” outcomes (not just inputs/expenditures)—acknowledging this will require major internal changes to long- term planning and reporting systems. • Clarity for Voters: Several council members emphasized the need to clearly communicate what programs and services the city could offer with or without the passing of the levy, including which restorations would occur and what shortfalls or losses would remain. Process and Timeline • Staff will present a budget modification package by September 30, 2025, that assumes the levy passes. Edmonds City Council Minutes September 12, 2025 Page 4 • If the levy fails, the council will rapidly revise the budget to reflect the loss of expected revenue—likely by late November or December, but with flexibility on timing for a thoughtful approach. In summary: The Edmonds Council’s budget retreat centered on a pragmatic, flexible, and transparent approach to restoring and sustaining critical city services amid significant fiscal uncertainty, with emphasis on clear communication to the public, cross-departmental coordination, and the development of more sophisticated budgeting and performance tracking over the next biennium. Agenda Management Software City Clerk Scott Passey provided a status report on the transition to the new agenda management software called OneMeeting. ADJOURNMENT The meeting was adjourned at 3:15 pm.