Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget topic
No spam. Unsubscribe anytime.
Lynnwood leaders outline sharp service cuts as departments trim budgets to balance 2026
Summary
City department directors told the Lynnwood City Council that additional 2026 budget reductions have forced cuts to programs, frozen positions and deferred maintenance, with managers warning staff shortages could slow permit processing, park maintenance and other services.
City department leaders told the Lynnwood City Council on June 1 that a second round of budget reductions to balance the 2026 biennial budget will cut programs, freeze positions and slow routine services across planning, parks and other operations.
"We reduced our budget by roughly 1.8 million dollars" over earlier cuts and are now implementing an additional $524,000 in reductions, Director Walters said, describing smaller line‑item savings such as membership dues, bank merchant fees and reduced code‑enforcement cleanup. Walters and his team said remaining professional‑services cuts affect consultant work on design guidelines, the multifamily tax‑exemption update and other planning studies.
Parks Director Faber described program and staffing cuts that have already taken effect, including elimination of some pool hours and family programming, sales of two buses, a frozen parks planner position and reductions in part‑time hours that amount to multiple FTEs. "The budget reminds me of the game Jenga," Faber told the council, warning that reduced inspection rounds and slower repairs will lengthen response times for vandalism and maintenance.
Staff shortages at Development & Business Services (DBS) are also constraining work. DBS leaders said the department will operate at about 74% of authorized FTEs after recent departures and may triage permitting work so that some permit reviews go forward on schedule while others are delayed. Carl Grama, the department’s planning manager, said residential applications have tripled compared with last year, but permit issuances have not yet increased at the same rate.
Councilmembers asked whether reduced small‑business program funding would end existing offerings or only prevent new partnerships. Walters said the city will "stick with where we're at" for currently running programs but had to pause plans to expand partnerships with regional nonprofits and universities.
Directors repeatedly warned the council that some cuts are one‑time savings or use grant proceeds that are not sustainable long term. Faber said insurance and utility cost spikes have added pressure; she cited a roughly $177,000 insurance increase in the first quarter compared with last year.
The council did not take formal action at the session but directed staff to continue monitoring service impacts and report back. Several councilmembers suggested prioritizing core services and considering any new initiatives as part of future budget planning.
