Edmonds City Council Special Meeting – December 16, 2025: Budget Modifications, CAO, and TBD Sales Tax
Edmonds City Council Special Meeting – December 16, 2025
The Edmonds City Council held a special meeting on December 16, 2025, its last scheduled meeting of the year. The council addressed a critical areas ordinance update, a transportation benefit district sales tax proposal, and the adoption of mid-biennial budget modifications amid public concerns over fund usage, tax increases, and fiscal transparency. All council members and the mayor were present.
Consent Calendar
- Approved the agenda (unanimous).
- Approved the consent agenda (unanimous), which included meeting minutes from December 2, 2025, and 2026 board/commission reappointments.
Public Comments & Testimony
Approximately 20 members of the public testified. Key themes included:
- Tree Fund and Marsh Fund: Several speakers (Georgina, Arlene Williams, Pete Adams, Pam Cowler, Teresa Hutchison, Kathleen Sears, Jane O'Dell, Karen Barnes, and others) urged the council not to divert restricted funds (tree fund, marsh fund) to support the Yost Pool or park operations. They emphasized that tree fund dollars from fee-in-lieu payments must be used for tree planting or acquiring/preserving wooded areas—not for other purposes. They cited statutory restrictions and argued that using these funds would violate public trust and worsen infrastructure maintenance.
- Critical Areas Ordinance (CAO): John Brock (Edmonds Environmental Council), Ron Eber, Joe Scordino, and others strongly supported the draft CAO but objected to the city attorney’s substitution of flawed language in the Critical Aquifer Recharge Area (CARA) section. They argued the new version allows PFAS-contaminated stormwater infiltration, contrary to best available science, and urged the council to restore protective language.
- Tax Increases and Fiscal Management: Several residents (Teresa Hutchison, Glenda Cral, Kim Bear Augustavo, Mary Jane, Anne Christensen, Mark Mercado, Gayla Schumach, Bill Krepik) expressed opposition to further tax increases (levy lid lift, utility tax, sales tax) following the November defeat of Proposition 1 (59% opposed). They called for a citizen financial advisory committee, better transparency, and spending analysis.
- Yost Pool: Community members (Kathleen Sears, Karen Barnes, Mark Mercado) advocated for preserving the pool but without redirecting tree/marsh funds; they suggested community fundraising or alternative revenue sources.
- Parks and Environment: Multiple speakers highlighted that trees and marshes are public safety infrastructure, requiring maintenance and replacement, and that further cuts to parks would harm the community.
Discussion Items
84th Avenue Street Vacation
- Resolution setting public hearing date: The council unanimously approved a resolution setting a public hearing for January 27, 2026, on vacation of a portion of 84th Avenue West near Highway 99.
Critical Areas Ordinance Periodic Update (AMD2025-0001)
- Debate on CARA section: The administration proposed retaining existing language allowing shallow underground injection control (UIC) wells, citing a pending PFAS study (from a settlement with Edmonds Environmental Council) and legal risks (nexus/proportionality). The city attorney and engineering staff argued that prohibiting shallow UICs could harm aquifer recharge and lead to costly litigation. Several council members (Olson, Eck, Dash, Nand) supported restoring the more protective public-hearing draft based on precautionary principles, while Councilmember Nand's motion to adopt the staff version died for lack of a second.
- Outcome: Councilmember Olson moved to schedule a public hearing on January 6, 2026, with all options (including the staff version, protective version, moratorium, etc.) presented in the packet. This motion passed unanimously (7-0).
4th Quarter 2025 ERP Update
- Presentation by IT Director: The ERP implementation for the financial system is on schedule to go live January 5, 2026. Phase 1 (financial) is under budget by ~$242,000; Phase 2 (HR) and Phase 3 (utility billing) are upcoming. Staff training was conducted in early December.
Transportation Benefit District (TBD) Sales Tax
- Proposal: The TBD board (council) considered a 0.1% sales tax (maximum 0.3% but councilmatic authority only for 0.1%) to fund transportation improvements. Estimated revenue: $660,000 in 2026 if started April 1, about $1 million annually thereafter. Funds would go to the street fund, not the general fund. The public works director noted that the street crew is critically understaffed (4 people for 157 lane miles) and that the tax would allow hiring two FTE concrete crew/members and restore maintenance.
- Council concerns: Some members noted this would make Edmonds the highest sales tax in the state (10.7%), potentially harming local businesses. Councilmember Dash asked for a holistic discussion including other potential taxes.
- Outcome: The council voted unanimously (7-0) to place the draft ordinance on the January 6, 2026 agenda for a public hearing and potential action.
Ordinance Adopting 2025-2026 Mid-Biennial Budget Modification
- Extensive deliberation: The budget modification had been developed over prior weeks, with major cuts and adjustments. Key points:
- Police department: Modified budget reduced by ~$1.5M (6-1 vote). Councilmember Olson attempted to add $275,000 from parks for two patrol officers but failed due to lack of a second.
- Parks and Recreation: $320,000 reduction; included $83,500 from non-city sources (Cascade Swim Club) for Yost Pool operating costs. An amendment to reduce the Cascade contribution to $53,500 failed (3-4). The original parks reduction passed unanimously.
- Public Works: $155,656 reduction passed unanimously.
- Community Services/Economic Development: $171,287 and $232,273 reductions passed unanimously; shifted arts/culture salary to municipal arts fund (unsustainable).
- Municipal Courts: $353,019 addition for automated enforcement, interpreter fees, and a case manager (grant-funded) passed unanimously.
- Non-departmental: Debate over assumption of $400,000 from TBD. An amendment to remove the TBD assumption passed 4-3. The non-departmental budget (now $1,449,230 increase) passed unanimously as amended. A subsequent amendment to delay the internal service fund transfer to cover the loss failed 2-5.
- Material changes to non-general funds: Amendment passed 5-2. Overall, the budget modifications reduced the general fund ending balance and assumed continued general fund transfers to the street fund.
- Final budget ordinance: Approved 5-2 after incorporating exhibit C changes (adding $400,000 in general fund expenditures, reducing ending fund balance accordingly).
Key Outcomes
- Critical Areas Ordinance: Public hearing set for January 6, 2026, with all options included in the packet.
- 84th Ave Street Vacation: Public hearing set for January 27, 2026.
- Transportation Benefit District Sales Tax: Public hearing and potential action on January 6, 2026.
- Mid-Biennial Budget Modification: Adopted 5-2 with amendments, including removal of the TBD assumption and restoration of a $400,000 general fund transfer to the street fund.
- Audience comments received on tree fund, marsh fund, and overall budget concerns; no formal action taken on those comments.
- Council expressed gratitude to staff and community and wished for a peaceful holiday season.
Note: The meeting was extended multiple times, adjourning at approximately 10:58 PM.
Meeting Transcript
All right. We will now call the December 16th, 2025 special meeting. This is a special meeting of the Edmund City Council, and it is the last scheduled meeting of the Edmunds City Council for this year. Would you all please join me in the flag salute? To the flag of the United States of America. And to the Republic for which it stands one nation, under God, invisible with liberty and justice for all. Thank you for the land acknowledgement. Councilmember Eck, please. We acknowledge the original inhabitants of this place, the Snohomish people and their successors, the Tulelit tribe, who since time memorial have hunted, fished, gathered, and taking care of these lands. We respect their sovereignty, their right to self-determination, and we honor their sacred spiritual connection with the land and water. Thank you. Can we do a roll call, please? Councilmember Eck. Here. Councilmember Chen. Council President Tibet. Councilmember Dodge. Councilmember Olsen. Councilmember Payne. Council Member Nand. Mayor Rosen. All elected officials are present. Thank you. Mr. Territory, I have a parliamentary question for you. Since this is a special meeting, are we able to extend it should the need arise, or can we not extend a special meeting? No, you should be able to extend. But you you do need a supermajority to extend just like any meeting. Thank you. With that, uh we our next time of business is approval of the agenda. Second. It's been moved and seconded to approve the agenda. All in favor, please raise your hand and say aye. Aye. All those opposed, please raise your hand and say nay. Motion carries unanimously. Thank you. Our next item of business is audience comments. This is the opportunity for individuals participating here or remotely to address council on any item of interest to them. You will have three minutes. Please approach the podium. And when you start talking, the light will turn green. When you have 30 seconds left, it'll turn yellow, and when your time's up, it'll turn red and make a noise. Please state your name and city of residence when you get there. So Georgina is first, and then Arlene behind. And the condition of those parks directly relates to public safety while the public is using them. I also want to emphasize the important roles of the tree fund and the marsh fund and why we must preserve those monies for the protection and preservation of our trees and marsh. Again, these connect directly to all the benefits of a thriving parks and recreation system that connects in some way to us all. These funds are not just for today's use, but for the future. Trees are being felled for development, and new trees will need to be planted to ensure that our tree canopy is maintained.
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