Jul 17, 2025
Edmonds may look like a postcard-perfect Washington town, but a $13 million deficit and more than $40 million in deferred maintenance is pushing the city toward historic, potentially irreversible changes.
City officials are slashing services and weighing drastic options to stay afloat. “We are in a financial crisis, a significant one,” Mayor Mike Rosen told KOMO News.
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Now, Edmonds is considering selling off prized assets, including City Hall and the historic Frances Anderson Center, as well as asking homeowners to pay an extra $720 per year in property taxes to help balance the budget.
Edmonds’ financial crisis
Edmonds’ severe budget crunch is pushing the city toward a tipping point.
“We had cuts in the police, our public records requests, which we are required to do. We had to let go of staff in our traffic and parking enforcement, animal control, so it affects the entire city,” Mayor Mike Rosen told KOMO News.
For years, the city has spent more than it brought in. In 2025, the city expects to collect about $16 million in general property tax revenue, yet the approved budget for the police department alone is around $19 million.
“We never took care of the backlog," said City Councilmember Vivian Olson. "I think that, coupled with inflation, and rising costs of everything.”
And now it’s time to clean up that deficit. Beyond the budget cuts, the city is considering selling off assets, like City Hall, public parks and the historic Frances Anderson Center. Additionally, the mayor has backed a plan that allows for the city to increase its property tax revenue.
But many residents are skeptical, especially when it comes to selling off public landmarks.
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“Those are the things that make this city identifiable,” said Adel Sefrioui, a resident on the Edmonds Chamber Board of Directors, “You sell those assets, they’re gone forever and the money will eventually dry up and then you still have a structural mess on your hands.”
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Preserving history vs. fiscal necessity
Raising property taxes might seem like the obvious solution for a growing, affluent city like Edmonds — but it’s not that simple.
Washington state’s 1% levy cap prevents cities from raising property taxes by more than 1% annually unless voters approve a ballot measure. In response, the Edmonds City Council voted on July 8 to place a levy lid lift proposal on the November ballot.
If approved, the measure would allow the city to raise property taxes, generating an additional estimated $14 million in annual revenue. It’s expected to cost the average homeowner a bit more than $60 per month.
While the city awaits the voters’ decision, officials are making steep cuts. So far, Edmonds has eliminated programs, raised service fees, sold vehicles and equipment and cut 48 full-time positions.
The pressure is mounting across the state. Just days ago, the small city of Cle Elum declared bankruptcy after a legal dispute left it with $26 million in court-ordered payments. With essential services and property values now at risk there, Edmonds officials are hoping to avoid a similar financial freefall.
But without new revenue, the services and public spaces that give Edmonds its charm could begin to fade — potentially reducing tourism, hurting local businesses, and weakening the city’s long-standing identity.
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Sarah Sharkey is a personal finance writer who enjoys helping people make optimal financial decisions for their situation. She loves digging into the nitty-gritty details of financial products and money management strategies to root out the good, the bad, and the ugly. Her goal is to help readers find the best course of action for their needs.
