Building a responsible, sustainable future for Edmonds

By Council members Michelle Dotsch and Will Chen on Nov. 9, 2025

 

Edmonds deserves a balanced, transparent and forward–thinking approach to its finances. Before our city commits to a modified biennial budget that sets 2026 spending levels, residents deserve comprehensive financial analysis and responsible alternatives. 

This is our perspective as individual council members, and our views are entirely our own. We are offering more reasonable solutions to begin to achieve long-term financial sustainability through a combination of short-term bridge funding and disciplined cost management and oversight. Edmonds has untapped resources that can buy time and stability right now, if used responsibly:

• Approximately $5 million in Internal Service Fund reserves can be reallocated to support the general fund.

• Around $4 million Real Estate Excise Tax (REET) funds can now be used for a broader range of purposes under updated state law. (SHB 1791).

• About $4 million is available to the Parks Department in the Parks Gift fund, including a $1.8 million donation received in July 2025, that could free up the general fund money for other basic services.

• Strengthening council’s responsibility for spending oversight by establishing a Finance Oversight Committee of 2 to 3 council members.

• A more reasonable amount of a levy in 2026 is to be determined after these and other steps outlined below have been taken to demonstrate our transparent fiscal stewardship of our city's resources.
   

The immediate resources listed above, combined with necessary cost controls and financial transparency, would provide the short-term stability necessary for a more measured and sustainable long-term plan.

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Building long-term fiscal strength will come from solutions and include non-property tax revenue sources and economic development that broadens our city’s revenue base. The Citizens Blue Ribbon Panel tasked the City Council to clarify the policy goals regarding economic development, which we agree is critical to gain an understanding of our future growth and economic opportunities that exist right here in our community, such as:

• Improvements in local commerce, small business retention and mid-size business growth incentives.

• Explore long range annexation opportunities, such as Esperance.

• A potential Transportation Benefit District 0.1% sales tax that would go directly to the general fund and directly to needed transportation projects, including sidewalks.

• Look at growing our revenue mix using strategic economic development planning for our Highway 99 corridor.
   

Responsible growth can produce sustained benefits that make any future tax proposals more accountable and less burdensome.

But none of these strategies will succeed if we lack financial transparency and discipline. Council should be reviewing our existing budget line by line to identify opportunities for fiscal discipline within the resources available to us.

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A primary diagnosis by the Citizen Blue Ribbon Panel was that forecasting is essential. We could not agree more. We advocate, along with the Blue Ribbon Panel, for the creation of a volunteer Citizen Budget Advisory Committee. Without addressing these issues, it makes it difficult to assure residents and businesses that their money is being managed responsibly. 

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Without accurate projections, consistent reporting, and adherence to the Council’s adopted December 2024 Financial Policy, Edmonds risks spending more than it takes in. This approach is not fiscally sustainable. City leaders must realign priorities to reflect both short-term prudence and long-term planning — ensuring that today’s decisions strengthen, not jeopardize, Edmonds’ financial future.

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Our city has the tools to stay financially healthy without exhausting reserves or relying heavily on any one type of income source. With transparency, cost control and forward-looking fiscal discipline, Edmonds can protect essential services today and secure the community’s economic stability for years to come.