Sammamish City Council reviews 6% utility tax proposal for financial sustainability

The Sammamish City Council convened on March 18, 2025, to discuss critical budgetary matters, including the proposed utility tax and its implications for the city's financial sustainability. The meeting focused on the city's revenue projections and expenditures, particularly in relation to public safety services.

The council began by reviewing the projected revenue from a proposed 6% utility tax, which is expected to generate approximately $696,000 based on existing budget figures. Additional calculations indicated that the total revenue from water, sewer, and stormwater utilities could reach around $3.36 million, factoring in a storm tax of $750,000. This projection is crucial as the city aims to address its financial challenges while maintaining essential services.

Councilmember O'Farrell raised concerns regarding the significant portion of the budget allocated to police and fire services, which together account for about 37% of the 2025 budget. The council discussed the increases in these areas, noting a 6% rise in police costs and a 15% increase in fire services. The discussion highlighted the ongoing challenge of balancing public safety funding with overall budget constraints.

Deputy Mayor Lam inquired about the potential for adjusting the utility tax rate if the initial 4% proposal proves insufficient. City officials clarified that any increase would require a formal process, including public hearings, and could not be implemented immediately.

The council also addressed the need for a long-term solution to achieve financial sustainability, emphasizing that the utility tax alone would not suffice. A recommendation was made for a voter-approved Metropolitan Park District to secure additional funding, with a potential vote anticipated in 2028.

In concluding remarks, the council acknowledged the importance of transparency and community engagement regarding the proposed utility tax. The meeting underscored the complexities of municipal budgeting and the necessity of strategic planning to ensure the city can continue to provide essential services while navigating financial pressures. The council is expected to vote on the utility tax ordinance in the coming weeks, with the implementation slated for January 2026.