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HomeMy WebLinkAbout2025-11-14 Special Meeting Minutes Edmonds City Council Special Workshop Minutes November 14, 2025 Page 1 EDMONDS CITY COUNCIL SPECIAL MEETING BUDGET WORKSHOP ACTION MINUTES NOVEMBER 14, 2025 ELECTED OFFICIALS PRESENT Mike Rosen, Mayor Will Chen, Councilmember Neil Tibbott, Council President Michelle Dotsch, Councilmember Susan Paine, Councilmember Chris Eck, Councilmember (8:30a-12:00p) Vivian Olson, Councilmember Jenna Nand, Councilmember (1:30p-4:30p) STAFF PRESENT Jeff Taraday, City Attorney Todd Tatum, City Administrator Kisha Post, Finance Specialist Mike DeLilla, City Engineer Loi Dawkins, Police Chief Richard Gould, Finance Director Angie Feser, PRHS Director Mike Clugston, PDS Director Ludwig Marz, Interim HR Director Teresa Simanton, Legislative Assistant Emily Villata, Deputy City Clerk 1. CALL TO ORDER The Edmonds City Council Special meeting was called to order at 8:03 am by Mayor Rosen in the Brackett Room, 121 5th Avenue North, Edmonds, and virtually. 1. WELCOME / REVIEW AGENDA / OUR CURRENT REALITY Staff and councilmember introductions were made. Council President Tibbott provided opening comments and context for the workshop. Key challenges included rising costs, funding gaps, need for essential services, and deferred maintenance. Attendees noted an increase in food bank usage, inflation, and federal grant loss/instability. 2. WHERE ARE WE GOING? A. Where do we want to be in five years? a. Financially? b. Capabilities? c. Service and service levels? Council discussed visions and goals for Edmonds over the next five years. Topics broached included: • Building financial stability and reserves. • Investing in staff as subject matter experts, including the value of adding a city-dedicated Emergency Services Manager and Grants Manager. • Diversifying city revenues. • Priority-based budgeting. Edmonds City Council Special Workshop Minutes November 14, 2025 Page 2 • Rebuilding public trust through transparency. 3. EXPLORE FINANCIAL MODELS A. No Levy (council decision or voter decision) B. $10M Levy a. Spend $5.125 C. Council Member Chen Proposal ($6M Levy) Budget scenarios were reviewed using spreadsheets provided to attendees. Discussion was held on revenue assumptions, projected expenses, reserves, and loan repayments. 4. WHERE ARE WE ALREADY ALIGNED? Council President Tibbott led an activity for council to identify their preferences for potential budget strategies. • Do you think council should pass legislation for new, non-property tax revenue before the end of this year? o Four councilmembers agreed. • If a levy were to be presented, should it be on the ballot for early 2026? o Four councilmembers agreed. o Councilmember Paine commented that this timeline aligns with other community areas seeking revenue. She also mentioned the sooner we get input from the community the better. o Councilmember Chen expressed concern that the recent focus on the levy lid lift redirected staff efforts from 2025 projects; he promoted that the community decide the amount in spring. o Councilmember Eck voiced concern about November being too late to make a meaningful impact. o Kisha Post noted a previous comment from councilmember Nand regarding the larger voter turnout for November midterm elections. o Mayor Rosen noted that the city will be in the process of building the 2026-2028 budget in November. • How would you prefer we fund emergency/unexpected costs? o Would you consider accessing the contingency fund?  All councilmembers agreed. o Would you consider borrowing from city funds?  No councilmembers agreed. o Would you consider reallocating designated funds?  One councilmember agreed. • What kind of budget cuts would council consider at the program level? o Public safety?  Three councilmembers agreed. o Human services?  Three councilmembers agreed. o Recreation programming?  Five councilmembers agreed. o Landscaping & beautification? Edmonds City Council Special Workshop Minutes November 14, 2025 Page 3  Five councilmembers agreed. o Administrative services?  Four councilmembers agreed. • Should council look at service reductions for 2026? o Three councilmembers agreed. 5. REVENUE & EXPENSE ASSUMPTIONS A. Revenue a. Sales Tax b. Utility Tax B. Expenses a. $3M Cuts b. 5% Inflation Staff presented an overview of revenue and expense assumptions used in the budgeting process. Topics discussed included: • Labor and benefits costs • Volatility of sales tax • Limitations and statutory caps on utility taxes • Concerns of deferring and underestimating costs of long-term maintenance 6. INTERVIEW PLANNING BOARD CANDIDATE Mayor Rosen introduced John Jessen, candidate for the available alternate role on the city’s Planning Board. Council interviewed Mr. Jessen and agreed to place his confirmation on the next consent agenda. 7. RECESS The meeting recessed for lunch from 12:02 pm – 12:35 pm 8. LEVY TYPES – VARIABLES / RISKS / BENEFITS A. Type of Levy B. Amount C. Permanent D. Temporary E. Escalating Base F. Escalating to adjust for inflation (fixed or track CPI) G. Periodic H. Specific like Parks or Safety I. When to do Levy 2026/2027 The meeting moved forward with discussion of potential levy options. Discussion revolved around the challenge of identifying levy options without a baseline understanding of financial assumptions. Council emphasized the importance of messaging and community-education materials for citizens. Key topics included levy durations, rate structure, and clearly defined usage for service priorities. Edmonds City Council Special Workshop Minutes November 14, 2025 Page 4 9. REVENUE OPPORTUNITIES A. Criminal Justice Sales Tax (ENACTED) B. Additional Automated Enforcement Cameras C. Paid Parking D. B&O E. Transportation Benefit District F. Utility Tax Council and staff discussed the merits of other non-levy revenue possibilities: • Permitting/fees • State and federal grants • Restructuring of programs • Paid parking options Staff cautioned that some options may generate only marginal revenue while requiring significant administrative resources to implement and maintain. 10. CUTS A. Amount B. Is 2026 different? C. Programs From Budget and/or Resolution 1570 Council expressed a desire for strategic reductions as opposed to temporary cuts. Some showed interest in evaluating programs using a standardized method for assessment. Staff noted most departments are currently running on minimal staff and further cuts would cause significant reduction in service levels. 11. SUMMARY AND NEXT STEPS A. Schedule The meeting closed with summarizing areas of alignment and next steps, noting that staff will prepare proposals for council consideration before the end of the year. ADJOURNMENT The meeting was adjourned at 4:23 pm.