EVERETT — A special city ballot measure asking residents to set property taxes at up to $2.19 per $1,000, beyond the state-limited 1% cap, will be on August ballots.
The City Council voted 6-1 to put it forward.
If approved to increase the tax rate by 67 cents, the average Everett homeowner would see their property taxes increase by just under $30 for the city tax.
For renters, it could increase rent by 1% if landlords pass on the increase, city director Jennifer Gregerson said last week.
Property taxes bring in a little over one-third of the city’s income, with sales tax proceeds close behind.
Everett’s current tax rate is $1.52 per $1,000 in assessed value, plus an EMS levy tax.
The difference appears to translate to about a 7% increase for the average homeowner. Without asking to go above the 1% limit, Mayor Cassie Franklin has said the city has little else to cut without cutting services.
In the big picture, Everett has had a structural deficit, where the expense of running the city outpaces its tax revenues, for more than 10 years.
Former Councilman Scott Murphy encouraged council members to skip the levy lid lift and instead examine the current budget more closely. Murphy noted key city department budgets have grown by double digits since 2021.
“This tax increase is going to hit residents hard, and businesses,” said Murphy, who was a budget hawk during his nine years on council.
The levy bump could bring in enough to prevent running into a budget deficit again for three years by city-projected forecasts.
Franklin has discussed asking voters for this for a few years, saying that placing this to voters is the best move.
Councilwoman Judy Tuohy gave the sole ‘no’ vote against putting it forward.
She is not in favor because it would increase costs on the families of Everett, including renters who would have the tax passed on to them through rent increases. “This is part of a larger impact our citizens are being forced to absorb” such as inflation.
The measure pitches that the increased funding would be allocated toward parks, events, public safety and more. The council added language that it also would explore bringing back library hours, explore reopening the Forest Park Pool and
restoring a full-time staffer in the city’s Office of Neighborhoods. These add-ons were put forward by Council President Don Schwab.
The 2025 maximum levy amount would be the basis to calculate subsequent levy limits, with the option to take the 1% percent in successive years.
Qualifying low-income senior citizens and others can get tax exemptions.
The city is at its legal maximum rates to charge for sales tax (0.85%) and utility taxes (6%).
