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Lake Stevens council approves 2026 support for AquaFest after public pleas over timing and costs

Lake Stevens City Council · April 1, 2026

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Summary

After more than an hour of public comment and detailed staff briefings, the Lake Stevens City Council voted to approve city support for AquaFest 2026 at roughly the same level as 2025, while urging a longer review of the city's in‑kind policy and budgeting for future events.

The Lake Stevens City Council voted March 31 to approve city support for AquaFest 2026 at the same level provided in 2025, after multiple speakers from the festival's volunteer board and local businesses urged the council not to change funding in the weeks before the event.

AquaFest volunteers and organizers told the council they had already committed vendors, carnival contracts and entertainment and that introducing potential city costs of roughly $41,019.80 (in addition to staff-approved in‑kind support of about $18,869) just months before the festival created significant planning and financial strain. "If you don't grow up here, then welcome. This is now our town," said Jeff Pegram, a longtime resident and AquaFest co‑vice president, urging council to allow the event to proceed under the previously approved budget.

Why it matters: AquaFest, a volunteer‑run nonprofit that staff and speakers said draws about 30,000 people over four days, is the city's largest special event and a major summer draw for downtown businesses. Organizers and volunteers argued the festival produces substantial local spending and tax revenue and that short notice of new city costs could jeopardize vendor commitments and the event itself.

In a staff report Parks and Recreation Director Sarah Garso said the city's in‑kind program includes items previously approved by staff (about $18,869) and a set of additional facility fees and services that require council approval, totaling $41,019.80 on the spreadsheet shown to council. "The number that was on the spreadsheet the council has been focusing on is the one in green ... $41,019.80," Garso said, adding that the larger $59,000 total on the right of the sheet combined the staff‑approved in‑kind amount with the council‑level request.

Council members pressed staff for clarity on the largest expense — police overtime — and were told the displayed billable rate (about $150 per hour) reflects the city's full cost calculation (wages plus taxes and benefits) rather than a direct per‑officer overtime payment. "They do not get paid $151 per hour," Garso said, explaining the finance department's billable rate methodology.

Council discussion emphasized timing and precedent. Several councilmembers said they supported approving 2026 support to avoid canceling the event with only 100 days to go, but asked staff and the AquaFest board to work on cost‑reductions and a clearer budget process for 2027. One councilmember proposed an amendment to delay implementation of the new in‑kind policy for existing nonprofits until Jan. 1, 2027, but later withdrew the amendment, saying it should be handled as a separate agenda item.

Motion and outcome: A councilmember moved to approve city support for AquaFest 2026 at the same level as 2025; another councilmember seconded. After additional discussion and assurances that staff would return with clearer breakdowns and opportunities to reduce costs, the council voted by voice and the motion passed.

What happens next: Staff said they would work with AquaFest organizers on options to lower city costs for future years and recommended that council consider adding an AquaFest line item to next year's budget so future support is transparent and consistent. Director Garso also offered to return with more detailed budget breakdowns if council requested them.

The council then moved on to other agenda items, including a year‑end financial update and a proposal to commission a phased update to the city's financial model.