Lynnwood Mayor George Hurst disclosed 14 staff reductions during a City Council session Monday, outlining them as part of his preliminary 2027–28 fiscal plan.
Though the council’s formal budget approval is slated for November, Hurst confirmed that layoff notices had already been sent to affected employees the previous week. The cuts span multiple departments: five roles in development and business services, four in finance, two apiece in information technology and parks, recreation, and cultural arts, along with one position each in the executive office, human resources, and public works.
Beyond filled roles, eight currently unoccupied positions were formally removed from the city’s staffing plan. In the police division, a total of 7.5 vacancies will remain unfilled over the coming two years.
“I don’t want to do that again,” Hurst remarked, referring to the recent workforce reductions, and emphasized his intention to align spending with incoming revenue going forward.
Earlier in September, Hurst shared a preliminary financial outlook for the 2027–28 period, projecting a $21.5 million shortfall in the city’s general fund. However, the version presented Monday balances revenues and expenditures precisely.
Over the past twelve months, the council has introduced several revenue-generating measures, including a 0.1% public safety sales tax, an uptick in the utility tax from 6% to 10%, and the lifting of the longstanding ban on retail cannabis. Collectively, those changes have contributed roughly $3.5 million in new income, according to Hurst, though he acknowledged that this influx has not fully offset growing financial pressures.
A July assessment had flagged a $2.2 million gap in the general fund, and as of Monday, Hurst noted that the 2026 shortfall is expected to expand further due to rising inflation and softer-than-projected sales tax collections.
An additional uncertainty looms in the form of Healthcare Delivery Services, the vendor managing medical operations for Lynnwood and four other municipal jails. The company has indicated it may discontinue services at year’s end, potentially adding $1 million annually in new costs. Neither the city nor the contractor provided formal statements on Tuesday.
The mayor’s proposed budget rests on several key revenue assumptions, with final approval resting with the council before year’s end. One major component entails raising property taxes to their full allowable “banked” level. Under state law, municipalities may increase property taxes up to 1% annually, with unused increments carried forward. Implementing this increase would generate about $2.2 million yearly and add roughly $128 to the annual tax bill for a typical Lynnwood home assessed at $676,300.
Council members voted Monday to expedite action on the property tax hike, with a public hearing now scheduled for Oct. 26 and a final vote set for Nov. 9.
When asked about the consequences of deferring the tax increase, City Administrator Harrell explained that additional workforce reductions would likely follow, given that nearly 70% of city spending supports personnel. With average staff compensation, salary, benefits, and liability coverage, coming in at $150,000 per employee, failing to raise taxes could necessitate cutting nearly 30 positions over the next two years to compensate for the lost banked capacity.
The city administrator explained that every $1.5 million deficit corresponds to approximately ten full-time positions, illustrating the difficult arithmetic involved in balancing municipal finances. While certain programs have been scaled back, the bulk of the city’s operational costs are tied to personnel.
The proposed financial plan relies on the council authorizing a shift to around-the-clock enforcement for existing school zone speed cameras and the installation of two additional red-light cameras. It remained uncertain on Tuesday what total income this expanded monitoring program would yield. Under state regulations, all proceeds from these devices must be reinvested in traffic safety initiatives. Some council members have voiced skepticism regarding the use of traffic enforcement technology as a primary revenue stream.
A council member questioned the city’s standing with the public on Monday, asking whether residents would believe the expansion was driven by a genuine commitment to road safety or merely by the need to fill budget shortfalls. He noted that this latter motivation has been the primary driver since the original cameras were implemented.
To reduce spending within the general fund, the mayor suggested transferring the salary of the arts, cultural, and heritage coordinators to the cumulative reserve art fund.
The council is set to hold a public hearing on the proposed budget on Nov. 9, with a vote on adoption scheduled for Nov. 23.