City Council votes on utility tax

In order to preserve valued City services, the City Council voted last night to adopt a 6 percent utility tax. Without this new revenue, services like community events, lifeguards, and sustainability initiatives could have been reduced or eliminated.  

The City started a conversation about its structural budget imbalance in 2023 and convened a community-led Fiscal Sustainability Taskforce, which recommended a utility tax. However, before implementing a utility tax, the Taskforce advised the City to make $1 million in budget reductions. Following extensive budget discussions throughout 2024, the City Council reduced the General Fund budget by $8.9 million. 

The utility tax will go into effect Jan. 1, 2026 and includes a $200 annual rebate for qualified low-income households. The City will continue to do outreach about the utility tax and low-income rebate program throughout the year. . 

To view last night’s presentation visit: https://sammamishwa.civicweb.net/document/295342/