A better, more affordable way of funding Edmonds' future

(Graphic courtesy Keep Edmonds Vibrant)

Keep Edmonds Vibrant (KEV) strongly supports the City Council’s efforts to generate at least $5 million in new annual revenue from non-property tax sources as part of a broader effort, which includes a levy lid lift this November, to fund our City in a more balanced and thoughtful way. 

In May, KEV presented a long-term, solutions-oriented plan (pgs. 31-52) to the Mayor and Council, shaped by extensive community feedback, to address our more than $20 million budget shortfall.

This plan outlines a path toward keeping Edmonds vibrant, making Edmonds more affordable, and ensuring it remains a desirable and livable city for future generations.

It’s premised on the idea that all stakeholders – not just homeowners – must help carry the financial load of running a thriving city.

That means businesses, visitors, and developers should contribute appropriately to the city's growing needs.

We applaud the City for courageously pursuing high-impact policy solutions, including:

1. A 0.1% public safety sales tax and 0.1% cultural access sales tax increase.
2. Additional school zone and/or red-light cameras, which improve safety, shape driving behavior, and raise revenue.
3. Paid parking in downtown and along the waterfront to ensure visitors help support city services.
4. Increased developer impact fees to bring Edmonds’ fees in line with neighboring cities.

Perhaps the most significant source of new revenue would be from the adoption of a Business & Occupation (B&O) tax – a standard tool used by many similar cities to fund essential services.

A B&O tax makes sense for many reasons:

• It’s widely used. Cities like Shoreline, Bellevue, Issaquah, and Lynnwood already have B&O or head/payroll taxes.
• It raises significant revenue. Issaquah collects nearly $7 million annually from its B&O tax alone.
• It’s modest. Some cities charge as little as 0.1% of gross receipts. For a business earning $1 million per year, that’s about $83/month.
• It includes exemptions. Many cities exempt small businesses under $200,000 in gross receipts or under a certain physical size.
• It won’t drive businesses away. Nearly all surrounding cities employ either a Head (Payroll) tax or B&O tax, so Edmonds would remain competitive and would simply be catching up to them.

We must keep the bigger picture in mind. For homeowners concerned about the burden of rising property taxes, opposing non-property tax revenue policies undermines the very relief you're asking for.

We must pursue diversified revenue sources if we’re serious about protecting homeowners from escalating costs.

Of course, we understand that any new revenue proposal –  especially a business tax –  will invite scrutiny.

That’s normal. Cities like Shoreline, Lynnwood, Bellevue, and Issaquah faced similar pushback but moved forward because they recognized the long-term benefits for their respective cities far outweighed the short-term resistance.

The reality is simple: Edmonds cannot continue to underfund City staff and services. If we want a city that works – a city with safe streets, thriving parks, responsive services, and a healthy economy, we need bold, forward-thinking revenue strategies implemented for our collective future.