53% property tax levy and 4% utility tax rate increases scheduled for Council vote Nov. 24

The Lynnwood City Council is poised to take action on nine major items at its Nov. 24 meeting. They include votes on a proposed 53% property tax levy increase, changes to utility billing and taxes, budget amendments and whether to approve transportation and development plans.

2026 property tax levy: The Council is scheduled to certify its 2026 Property Tax Levy for the subsequent year, as required by state law before the end of November. The ordinance proposes an increase in the regular property tax levy by $3.8 million over 2024, equating to a 53.51% increase. The ordinance reflects the maximum amount the City can legally levy. This increase is intended to fund municipal services and help reduce the estimated $8 million operating budget gap in the general fund.

Utilities: The Council is set to vote whether to increase utility tax rates from a total of 6% to 10% for water, sewer, surface water, and solid waste services within the city limits (a 1% increase for each utility). City documents say this is the first rate increase in 10 years and aligns with the average rates charged by neighboring jurisdictions. This is estimated to generate about $1.9 million in revenue for the City’s general fund amid an $8 million projected deficit for 2026. The effective date for the rate increase is proposed to be Feb. 1, 2026.

The council is also set to vote whether to establish a general facility charge (GFC), or connection charge, for water utilities. This is a one-time fee imposed on new development, intended to fund capital projects and mitigate the need for higher water rates. Lynnwood currently does not impose this charge for its water utility. The proposed charge is $1,932 per meter capacity equivalent, based on the size of the water meter connecting to the system.

Lynnwood already has a sewage GFC. The ordinance proposes a major increase from $4,000 per equivalent residential unit to $11,720 per equivalent residential unit for sewage These one-time charges on new development help fund sewer capital projects and keep sewer rates lower, according to City documents. 

Another ordinance scheduled for approval relates to the operation of the City’s waterworks utility (covering water, sewer and surface water systems). The changes aim to clarify definitions (such as updating the title of ‘Meter Reader’ to ‘Engineering Technician’), and refine rates and billing procedures to align with current practices and state statutes. The proposed effective date for these changes is Jan. 1, 2026.

Comprehensive Plan amendments: The Council is scheduled to consider an ordinance approving 2025 Comprehensive Plan Amendments. The amendments involve minor textual changes, updates to the annual demographics cutsheet, and incorporating map updates to reflect the annexation of the Old Alderwood Middle School property. It also includes references to the Unified Development Code and the City Center + Alderwood Subarea Plan.

Capital Facilities and Transportation Improvement Plan updates: As required by state law, the Council is scheduled to approve an annual update of the two plans for 2027 through 2032.  

The Transportation Improvement Program outlines the City’s transportation projects for the ensuing six calendar years, summarizing expected costs. The Capital Facilities Plan (CFP) is a state-mandated element of the City’s Comprehensive Plan detailing anticipated capital projects across five categories: Police Administration, Information Technology, Economic Development, Public Works Administration, and Parks, Recreation & Cultural Arts. The total estimated six-year cost for these projects nears $404 million. Adoption of the CFP is necessary before the City can impose state impact fees and qualify for state funding for capital facilities.

Mid-biennial budget amendments: The Council will consider an ordinance to formally adopt mid-biennial budget amendments to the 2025-2026 biennial budget. State law requires this mid-biennial review to modify the budget for significant items that were unforeseen when the budget was originally adopted in late 2024. 

The meeting is scheduled for 6 p.m., Monday, Nov. 24 at Lynnwood City Hall: 19100 44th Ave. W. It will also be livestreamed on the city’s website and Zoom.

— Contact Ashley at ashley@myedmondsnews.com.