Everett Council Budget Committee: March 18, 2026

The City of Everett Budget Committee met on March 18, 2026, to discuss revenue options addressing a structural deficit forecasted at over $15 million for the next fiscal year. A key procurement-related topic was the proposal to replace the city's current 6% payment in lieu of tax (PILOT) on utility services with a 12% utility tax, aligning with practices in other Washington state cities. This change is expected to generate approximately $7.5 million in additional revenue for the general fund. The committee discussed the legal basis for the utility tax, its impact on both city residents and wholesale water customers outside city limits, and plans for outreach and relief programs for low-income and senior residents. The utility tax increase is targeted for mid-year implementation pending council approval. Additionally, the committee received an update on monthly financial reporting and plans for future budget prioritization and legislative impact analysis.