Here’s how Lynnwood’s ’27-’28 budget process will play out

As the City of Lynnwood continues to grapple with the budget deficit in the current biennium, assistant city administrator Monisha Harrell and interim finance director Sandra Fujioka laid out the plan for the 2027 to 2028 budget process for the city council. The budget process will also include updates on new procedures that will increase financial transparency, as well as flexibility among the various departments and the council.

Once the council is back from their August break, the bi-annual budget process will begin in earnest. City staff are currently working with the mayor’s office to plan out the proposed budget as they review revenue projections and figure out where the departments are at now that the financial books for 2025 have finally been closed. It’s been difficult to project revenue because consumer spending has cratered thanks to the drastic increase in gas prices that have resulted from president Donald Trump’s illegal war with Iran. This has forced staff to look at economies of scale and scope to reduce the deficit without harming the services provided by the city government.

Harrell laid out the calendar that the city staff, mayor, and council will be working with as all hands grapple with the budget for the next two years. The calendar lays out a process that will start in early September and run through November and includes two rounds of public comment that give the public time ample time to respond to the initially proposed budget along with the request from each city department.

More news from the Lynnwood City Council’s July 13th, 2026 meeting

There were a few questions about why it took until June to close out the city’s financials from 2025 from the city council. According to mayor George Hurst, department heads had reported a period of silence from the previous finance director Michelle Meyer as they weighed whether or not they would continue in the role. This silence, combined with a lack of a clear and consistent process, delayed the finalization of the city’s financial health.

This six month delay in closing out the previous year has put the staff six months behind. This delay, along with comment made during public comment, prompted discussion on whether or not the council members should cancel their August break. But the reality is it would not make a difference as most department heads plan their summer vacations around the council’s summer recess and would not be available to answer any questions that were raised.

The city is looking at how to implement clearer process for managing it’s financial records to ensure better transparency for the council and public. One of the ways staff is planning on doing this is getting monthly financial reports so that they’ll better be able to respond to changes in sales tax revenue in order to help manage potential deficits; previously the city had been getting quarterly reports – the minimum required under state law – and that’s just too long a time period for city that’s dependent on sales tax.

While the departments are reviewing their internal processes to tweak them in order to make them more efficient to save staff time, the reality is that the collapse in revenue has created a budget deficit too large for those kind of efficiency tweaks to make any real financial difference. To better manage the budget the city is going to have to find a balance between adjusting revenues and managing the service level of city services as the city continues to grow.

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