Edmonds City Council Meeting – July 7, 2026

The Edmonds City Council held a regular meeting on July 7, 2026, at 6:00 PM in the Council Chambers. The meeting included a presentation of the Mayor's Finance Update and a proclamation for Disability Pride Month, approval of the consent agenda, and a discussion and vote on a budget amendment. The council also entered an executive session to discuss potential litigation. No public comments were made.

Presentations

• Mayor's Finance Update: The mayor reported positive financial news. Year-to-date (through May) sales tax revenue was $391,000 over forecast; development-related revenue was $400,000 over forecast and 61% of anticipated revenue had been collected (42% into the year). Lodging tax was $16,000 ahead, while the Real Estate Excise Tax (REAT) was $22,000 below forecast. For June, planning fees totaled $74,487 (up from $63,000 the prior year), building and fire permits reached $1.5 million (up from $676,000), and engineering permits also reached $1.5 million (up from $600,000). Three major projects drove the permitting surge: the Boys and Girls Club, Edmonds Green Apartments, and the Port of Edmonds Seawall Phase 2. The mayor also noted that a city check was intercepted and sold on the dark web, but the bank stopped payment and the vendor was notified; the issue was resolved.
• Proclamation: Disability Pride Month (July 2026): The mayor read a proclamation recognizing July as Disability Pride Month, marking the 36th anniversary of the Americans with Disabilities Act. Jody Callello, a board member of the Arc of Snohomish County, accepted the proclamation and spoke about her work as a disability rights advocate, including helping families with IEP meetings and supporting transition-age students with disabilities.

Consent Calendar

The following items were approved unanimously without discussion:

• Approval of City Council meeting minutes from June 10, 2026 (study session).
• Third reading of the Park Impact Fee (PIF) Interim Ordinance Extension.
• Approval of payroll, benefit checks, direct deposit, and wire payments for June 16–30, 2026.
• Approval of claim checks and wire payments for June 24 and July 1, 2026.

Discussion Items

• Budget Amendment (Ordinance Amending 4422): Finance staff presented five key adjustments to the 2026 operating budget:

  1. REAT Funds (125 & 126): Return $183,621.65 to Washington state following a program audit of past payouts. The city received funds from the county and now owes the state.
  2. Columbarium Project (Fund 009): $150,000 expenditure authority ($140,000 for professional services, $10,000 for parks project manager labor).
  3. LEOF (Law Enforcement Officers’ and Firefighters’ Retirement System) Fund (001 to 009 transfer): $187,000 transfer from the General Fund to cover anticipated benefit expenses (long-term care) and professional services.
  4. Lodging Tax Advisory Committee (LTAC) – Holiday Lights: $15,000 additional expenditure authority for holiday lights in downtown Edmonds, approved by LTAC.
  5. LTGO Debt Service Fund (126 to 231 transfer): $700 transfer for previously unbudgeted administrative service fees.

  Council discussion: Councilmember Chen asked to delay approval on the REAT repayment, citing inability to verify that the city actually received the funds from the two companies (Healthcare Loyalty Trust Inc. and East of Marion Adams) in 2022 and 2023. He also noted the repayment should be a fund balance adjustment, not an expense. Finance staff responded that delaying could result in the state withholding future REAT distributions and that the county may not be able to provide more detailed information. The city is currently under audit. Councilmember Barnett asked about forecasting for LEOF expenses; staff acknowledged that new long-term care claims had not been fully anticipated. Councilmember Eck supported the finance department's approach. Councilmember Nan moved to adopt the ordinance, arguing cooperation with the state is prudent and the adjustments are well-documented.

Key Outcomes

• Budget Amendment Ordinance passed 6-1, with Councilmember Chen voting against. The ordinance amends Ordinance 4422 to account for unanticipated transfers and expenditures.
• The council entered executive session for 60 minutes to discuss potential litigation (RCW 42.30.110(1)(i)).
• The meeting was reconvened at 8:15 PM, after which council members gave brief comments about community events, including the Fourth of July parade (estimated 19,000 attendees), Pride Fest, and the upcoming Porch Fest. Councilmember Payne urged focus on revenue options at the next day's budget retreat, noting the utility tax expires in 12 months.