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Lynden council approves jump in city utility tax to 10%, effective Jan. 1, 2025
Summary
The Lynden City Council voted 7-0 to raise the city's utility occupation tax on municipal water, stormwater and sewer utilities from 6% to 10%; staff estimated each 1% yields about $118,000 and the change will be incorporated into the 2025 budget and reflected on bills starting Feb. 2025.
The Lynden City Council on Nov. 18 adopted Ordinance 24-1693 to increase the city's utility occupation tax on municipal Water, Stormwater and Sewer utilities from 6% to 10%, a 4-percentage-point rise that the minutes say will be incorporated into the 2025 budget.
Councilor Lee Beld moved and Councilor Gary Vis seconded the measure, which passed on a 7-0 vote. The minutes state that each 1% increase produces roughly $118,000 in additional revenue; the council approved a 4% change to generate additional General Fund cash flow. The ordinance will take effect Jan. 1, 2025 with collection beginning on February 2025 billings and customers are to be notified on their next billing cycle.
Finance Director Laura Scholl and other staff had presented the option during the budget cycle as a way to bolster general-fund revenue without further reducing service levels. The minutes record that the rate had not been increased since 2003 and that council discussion allowed members to consider different percentage options before settling on the 10% rate.
The council's action was procedural: the ordinance and the motion language were approved and the city administrator and finance director will implement notification and billing adjustments.
