Lynnwood outlines 2025-26 budget shortfall, departmental cuts and a proposed temporary reduction in minimum fund balance

Lynnwood city leaders told the City Council on Oct. 20 that a series of staff reductions and program cuts are in effect across internal departments as the city responds to a projected general-fund shortfall in the 2025-26 biennium, and staff recommended temporarily lowering the general fund minimum fund balance policy from 2.5 months to two months to remain in policy compliance for 2025.

Assistant City Administrator Julie Moore and Finance Director Michelle Meyer walked the council through internal department reductions made to meet a 10% biennial reduction target. In the executive department, Moore said the city eliminated a senior records specialist (an AFSCME position) and cut the equity and social justice advisor role; the latter will shift liaison duties to Human Services Coordinator Kyle Ward while the city retains some programmatic funds for events and community sponsorships.

Meyer presented a draft, unreconciled third-quarter financial report. She said the city is about nine months into the 24-month biennium and that, by the…