Marysville Council to vote on $470 million budget Monday

The Marysville City Council will vote on the city’s 2027-28 biennial budget at its regular meeting on Monday, Nov. 9. The proposed two-year spending plan totals $470.2 million. It includes $157.3 million in expenditures from the general fund, which pays for most city staff and serves as the most flexible funding source available to the municipality.

Mayor Jon Nehring described the financial situation as the most difficult the city has faced since the great recession. He made this assessment during a council meeting on Oct. 5. Nehring cited inflation, rising fuel prices, increased county jail fees, and unfunded state mandates as the primary drivers forcing the city to raise revenue and reduce expenses.

City Administrator Jennifer Stapleton explained that Marysville ended 2026 with a projected deficit of $6.9 million. To address this, the city cut spending by $3.9 million and used savings to cover the remainder. The proposed 2027-28 budget generates $154.1 million in general fund revenue, leaving a structural deficit of $3.2 million. Stapleton said further savings are necessary to prevent the city from continuously drawing down its fund balance.

To create savings, the city eliminated five full-time positions and restructured others. Finance Director Heide Brillantes noted on Oct. 5 that, after accounting for restructures and new positions, the total number of full-time positions paid from the general fund remains unchanged. Non-general fund positions will decrease by one. The budget also ends an opt-out incentive for employees who already have health coverage through other plans. Nehring stated this change saves approximately $2.4 million over the two-year period.

Revenue will increase through a 0.1% criminal justice sales tax. State law allows city councils to approve this measure without a vote of the people. On Oct. 12, the Marysville City Council unanimously approved the tax, raising the city’s sales tax rate from 9.4% to 9.5%. This change creates an additional $3.3 million in revenue over the biennium. Snohomish County, Edmonds, Stanwood, and Lynnwood have recently approved similar taxes.

The proposed budget does not include an increase to the city’s portion of the property tax. Nehring said on Oct. 5 that the city has not raised its share of the property tax in more than a decade. He described Marysville as one of the few cities in the state that can make that claim.

Utility rates for water, wastewater, stormwater, and solid waste will rise, though these funds do not go into the general fund. Starting in 2027, the average rate for a typical residential water customer will increase by $35 per 10,000 gallons, paid every two months. The rate rises from $59.58 to $95.32. Wastewater rates for a typical household will increase by $23.81, going from $107 to $130.81 every two months. Stormwater rates will rise by $8.43, moving from $29.08 to $37.51 every two months.

Solid waste rates will also increase by $6.15 every two months for a typical customer with 36-gallon garbage and recycling service. Nehring noted that diesel fuel prices nearing $7 a gallon have increased the garbage hauling budget by over $300,000 for the coming biennium. He also pointed to an aging water and sewer infrastructure system that requires careful planning for repair and replacement.

Stapleton said the city has not kept pace with the cost of water it purchases from Everett. Over the last 20 years, Everett increased the cost of water to Marysville by 150%. In contrast, Marysville’s average rate increase during that same period was approximately 2% year-over-year. The city council approved the new utility rates unanimously on Oct. 26 following a comprehensive study.

Nehring said the city is looking for additional local water sources but currently has none available to tap. The council will consider the full budget package on Monday. The vote will determine the financial direction for the city for the next two years.