Edmonds City Council members and staff spent a full-day budget retreat on May 9 reviewing updated revenue and expense projections and three possible approaches to the city’s 2026 budget.

Staff presented three linked scenarios: (1) the 2026 budget as adopted, which assumes a $6 million property-tax levy lift; (2) a higher, “community vision” funding level that would restore services and begin catching up on deferred maintenance; and (3) a no-levy or failed-levy scenario that would require deeper cuts and changes to service levels. Finance staff highlighted the uncertainty in sales tax and other revenues and said projections will be refined monthly.

Why it matters: the council must decide whether to place a levy lid lift before county filing deadlines this summer if it wants voters to consider new property-tax authority in the November general election. Staff and council discussed a calendar of public hearings and outreach, including a late‑May community meeting, and described the legal and scheduling steps (resolution, public hearing, appointment of pro/con committees, county filing). The deadline to file ballot measures with the county clerk was discussed as early August, and staff emphasized the need for council direction now so outreach and legal work can proceed.

Most immediate facts: the budget used in staff presentations relies on a $6 million levy lift built into the 2026 baseline. Staff also identified a $2 million embedded expense reduction already assumed in the 2026 figures and noted a separate schedule for repaying a bridge loan; the 2026 budget as drafted includes a $3 million programmed payback installment. Staff warned that weaker-than-expected sales tax collections are a major near‑term risk to the general fund.

Council next steps and timing: council members agreed to begin more active public outreach in late May and to schedule work sessions and committee meetings in June and July to finalize any resolution placing a measure on the ballot. If council chooses to place a measure it will need to adopt the formal resolution (with the ballot title and explanatory language) and file with the county in time for the August filing deadline. Staff said the municipal code and state laws require the council to give precise ballot wording and to appoint committees if the council moves forward.

What council members worried about: members pressed staff for concrete descriptions of what a no-levy scenario would look like — which services would be reduced or eliminated and what the timeline for those cuts would be — and they asked for materials that the public can understand easily. Several members urged rapid, clear outreach so voters would see tradeoffs in plain language.

Where this goes next: staff will refine revenue projections and return to council with more detailed program-level impacts, a draft resolution and a schedule for public outreach. The council asked staff to prepare a short, plain-language package explaining the three scenarios and the fiscal consequences so that public meetings can focus on questions and priorities.