LYNNWOOD—Mayor Christine Frizzell, in an email to the Lynnwood City Council earlier this month, wrote that the city started 2025 with millions of dollars less in anticipated revenues and that she is working with “Department Directors on potential cost saving measures” to identify opportunities in “delay[ing] spending” or provide “an alternative delivery method” to close the funding gap.
“Unfortunately, the national environment of economic uncertainty has proven impactful to our end-of-year anticipated revenues, and we started 2025 with a fund balance of approximately $3 million dollars less than forecasted,” Frizzell wrote to council members.
During a Lynnwood Finance Committee meeting on April 23, it was reported by Finance Director Michelle Meyer that the city’s 2024 Ending General Fund Balance for its 2023-24 biennium was $8.81 million or $4.27 million less than the forecasted $13.08 million that was adopted by the council as the Beginning Fund Balance in the 2025-26 biennium budget.
The Lynnwood Times is awaiting clarification from the City on the $1.27 million difference between the mayor’s and finance director’s reported shortfall.
According to 2025 first quarter financials (January 1 through March 31), the projected ending fund balance as of March 31 is $5.42 million with the city spending $3.375 million more than it received in revenues.
Mayor Frizzell provided some details to the actions her team is doing to adjust to the “economic uncertainty” and the recent “tariffs” may have to “consumer confidence.”
“Through budget management, we have asked that some purchases or professional service contracts be delayed, and we are reviewing each vacancy and not automatically filling these vacancies in our effort to gain some salary savings,” wrote Frizzell. “We are also closely monitoring all travel and training.”
The City’s policy is to maintain a Reserve Requirement of two-and-a-half months of Operating Expenditures. As of the end of 2025, the City was $5.242 million more than the Reserve Requirement with $11 million total cash on hand. Currently, for the end of the first quarter of 2025, the Reserve Requirement is $1.625 million underwater with $13.2 million total cash on hand.
According to the $469.7 million 2025-26 adopted biennium budget, the City is projecting an Ending Fund Balance for December 31, 2026, of $10.1 million.
Since 2023, the City of Lynnwood reported sales tax collected of roughly $30 million for each year but anticipates $32 million for 2025, $2 million more than the previous biennium budget.
According to 2025 sales tax revenues—roughly a third of the general fund—the city has collected 8.54% (or $863,820) less revenue than projected as of April 30 and 4.56% less sales tax revenue than it collected as of April 30 in 2024.
The city anticipated a 14.8% increase in sales tax in April but experienced a drop of 25% in sales tax. The key driver (72% or $165,469) for this decrease is linked to lower than expected “Motor Vehicle & Parts Dealers” sales. Lynnwood is home to imported car dealerships including Mercedes-Benz, BMW, INFINITI, Lexus, Porche, Volvo, Honda, Toyota, and Audi.
On March 26, President Donald J Trump announced a 25% tariff on all new imported sedans, SUVs, crossovers, minivans, cargo vans, and light trucks, as well as some auto parts, that began in April. Domestic vehicles are not exempt from higher prices being passed to consumers as imported car parts, which make up 40–80% of U.S.-made cars, account for 20–40% of the retail price nationwide.
As there is no specific economic data available for the average cost of a vehicle in Lynnwood since the 25% auto tariffs were imposed, according to Reuters consumers can expect a $4,000 increase in the retail value for a new car purchase.
Besides tariffs, Tesla Takedown rallies in March and April at the Lynnwood dealership may have negatively impacted sales. A total of six Cyber Trucks were vandalized at the Tesla dealership in Lynnwood on March 8, in what appeared to be a protest of Elon Musk and his role within the federal government.
Author: Mario Lotmore
3 Responses
Lynnwood did this to themselves. Short sighted feel good performative politics brought us here. DEI is a divisive Communist ideology that is ruining cities all across our country. It is what happened to Rhodesia and South Africa and it’s happening here. You are being bludgeoned with guilt that is not yours, by grifters who are seeking to enrich themselves. Time for the adults in the room to clean up the budget and bring in outside investigators. Residents of Lynnwood you get what you vote for. Hope you realize now voting has consequences, and I’m not talking about Trump, I’m talking local, county and statewide.
This Mayor proclaims to be a “numbers” person. She has directed a flawed revenue projection for the biennium. Blaming the recent tariffs is a flimsy excuse. She directed suspect sales tax revenues with unprecedented growth. It’s time for Lynnwood to get new Mayoral leadership. She has done enough damage
Here’s another reason why the Mayor’s “rationale” for the city’s budget issues is so flawed. The tariffs announced by the Trump administration became public knowledge in early April. Tariffs would have had only minimal impact on the city’s first quarter deficit. The real reason is the Mayor sold the council on a huge sales tax revenue increase that was totally unjustified and unprecedented. It will be very interesting to see how much more “pain” the city will experience this summer when the tariff’s impacts will be better understood. Mayor Frizzell loaded a huge increase in spending for FY 25-26 that will not survive. It is time for a new Mayor who will be more honest with the city’s fiscal matters.