Edmonds City Council Regular Meeting - July 28, 2026

The Edmonds City Council met on July 28, 2026, at 6:00 PM in the Council Chambers. The meeting included a presentation on the Edmonds New Start Center bridge housing project, public comments on annexation and utility taxes, and council action on extending the temporary utility tax increase with a new sunset date of December 31, 2028. The council also discussed the updated fiscal analysis for the potential Esperance annexation and directed staff to continue evaluating both full and phased approaches.

Presentations

• Edmonds New Start Center – Representatives from Snohomish County (Julie Moore, Susan Christ) and YWCA (Krisha Green) presented the bridge housing project at the former hotel on Highway 99. Key details: 45 client rooms, 90-day intended stay, referral‑only entry, 24/7 security, approximately $2 million annual operating budget, 75% of clients expected from the local community, and a four‑month ramp‑up to full occupancy. Councilmembers expressed support and asked about success metrics, outbound bridge support, and emergency cooling capacity (not currently planned).
• Mayor’s Finance Update – Mayor Rosen noted that the council had received financial materials and that the city is proceeding with the Baker Tilly engagement, utility tax discussion, and Esperance annexation analysis.

Consent Calendar

Approved unanimously:

• Approval of Professional Services Agreement for Phase 7 Stormwater Replacement Project Design (second reading).
• Approval of claim checks and wire payments.
• Authorization to purchase an International HV507 dump truck (second reading).
• WWTP Supervisor job description revision (second reading).
• Fiscal Sustainability Task Force charter and selection process (second reading).
• Joint Resolution with Mountlake Terrace requesting Snohomish County 2027/2028 REET funds (second reading).

Public Comments & Testimony

• Colleen McDonald (Esperance resident) – Expressed support for continuing annexation conversations on behalf of the Esperance Neighborhood Alliance. Noted that the effort originated from a proposed county rezone, not as a city revenue generator.
• Emily Benson (Esperance resident) – Supported annexation, citing that many residents already identify with Edmonds and that annexation would address concerns about tree canopy, road safety, and representation.
• Dom Parker (Edmonds resident 65 years, now Esperance 11 years) – Supported annexation.
• Linda Anderson (Esperance resident) – Supported annexation.
• Jim Loganowski (Edmonds resident) – Questioned the accuracy of the utility tax extension spreadsheets, pointing to a potential $700,000 change in the 2026 ending fund balance over three weeks and a negative fund balance on the extended option slide. Asked if the general fund is technically insolvent.
• Jack Malik (Shoreline resident) – Spoke about a small bakery (Bakery Louise) seeking to lease at Port of Edmonds Building 471 Admiral Way. Objected to an estimated $35,000–$40,000 impact fee, calling it onerous for a first‑time brick‑and‑mortar business.
• Bill Krepik (Woodway resident) – Criticized the Baker Tilly engagement and proposed fiscal sustainability task force, arguing that residents should help shape the analysis from the start rather than react to conclusions. Recommended that at least 60% of the task force represent the 60% of voters who rejected the 2025 levy lift.
• Ken (Edmonds resident) – Urged council to reject removal of the sunset on the temporary utility tax increase. Proposed a Utility Taxpayer Protection Ordinance requiring voter approval for rates above 10% after June 30, 2027.
• Deborah (remote participant) – No substantive comment.

Discussion Items

• Utility Tax Extension Ordinance (First Reading) – Chris (Finance) presented a proposal to remove the June 30, 2027 sunset on the temporary 20% utility tax rate for water, sewer, and stormwater, making it permanent until council changes it. The administration argued it provides $1.6 million in additional 2027 revenue and $3.2 million in 2028, reducing the projected structural deficit from $4.5 million to $2.9 million, and supports cash flow stability while longer‑term solutions are developed. Council debated the regressive nature of the tax, the need for time to implement the Baker Tilly work plan and community task force, and the commitment made to residents that the increase was temporary. An amendment by Councilmember Payne to set a new sunset date of December 31, 2028 passed 5‑2. A second amendment to update the recitals passed 6‑1. The main motion as amended passed 5‑2.
• Updated Preliminary Fiscal Analysis of Potential Esperance Annexation (Third Reading) – Michael Cluxton and Brad Shipley (Planning and Development) presented updated analysis from consultant Burke. Key updates: assumed 10% utility tax (not 20%) after the first year; included staffing costs (1 PW, 1.75 Parks, 4 police, 1 support); annexation still projected positive. Per‑capita tax impacts for Esperance residents shown (property tax change minor, utility costs higher under Edmonds rates). Risks noted: capital needs for the 84th Street Bridge (currently “fair” condition), potential level‑of‑service impacts without additional staffing, and uncertainty over the annexation sales tax credit eligibility for major infrastructure. Council discussed phased vs. full annexation, including the possibility of splitting to obtain a second 0.1% sales tax credit for the bridge area. Councilmember Chen recused himself due to a conflict of interest (his office building is in Esperance).

Key Outcomes

• Utility Tax Extension (Ordinance 4415) – Passed 5‑2 (Councilmembers Chen, Nan opposed) after amendments. The ordinance removes the original June 30, 2027 sunset and replaces it with a new expiration date of December 31, 2028. The utility tax rate of 20% will revert to 10% on that date unless council acts sooner.
• Esperance Annexation – Council approved a motion (6‑0, Chen abstaining) directing staff to continue evaluating both full and phased annexation alternatives and return with a recommended strategy, including details on staffing, service levels, capital obligations, revenue assumptions, implementation timing, and legal constraints. The final fiscal analysis is expected August 12, with a resolution on whether to proceed on August 18.
• Consent Agenda – Approved unanimously.