10-27-2026 5:21am

LFP Council Grapples With Budget Shortfall, Approves Traffic-Camera Fine Increases, Considers Utility Increases

Chris Clasen Editor

LFP city council. cityoflfp.gov

At its Oct. 22 meeting, the City Council approved changes to automated traffic-camera fines and police staffing while continuing to weigh potential tax increases and other revenue sources to address a projected $1.7 million general fund deficit by the end of 2030.

The council did not finalize the upcoming budget. Instead, members requested additional financial projections to evaluate potential revenue increases and spending adjustments before deciding in November.

Budget projections point to difficult choices

City financial projections showed a general fund balance of slightly more than $3 million at the end of the 2027-28 biennium, including $2.6 million designated as the city's policy reserve. By the end of 2029-30, the forecast showed the general fund falling $1.7 million below zero.

Council members discussed several potential revenue sources, including increased utility taxes, revenue from traffic-camera fines and a possible public safety sales tax.

One option under consideration would increase the city's sewer utility tax from its current 10% to 15%. Staff estimated that the increase could generate approximately $464,000 over a two-year budget period. The council discussed how the change could help reduce the projected deficit while preserving a low-income discount available to qualifying sewer customers.

Members also discussed assuming approximately $400,000 annually in additional traffic-camera revenue and $200,000 annually from a potential public safety sales tax for preliminary forecasting purposes. Those figures were estimates for modeling, not guaranteed revenue.

The public safety sales tax would require additional action, and officials noted that revenue collection would not begin immediately after enactment.

Council members asked staff to update the six-year financial forecast to show how different tax rates and revenue assumptions would affect future fund balances. They also discussed scheduling a special meeting in early November to continue the budget work.

Proposed 2027 taxes and utility rates

During a public hearing, city staff outlined preliminary estimates for 2027 property taxes and utility rates.

The city is considering a regular property tax levy of $3,813,721, including an estimated $200,000 buffer because King County's figures were not yet final. The preliminary calculation includes the state's 1% levy limit factor, new construction, and the recovery of certain prior-year refunds.

Using a median assessed home value of approximately $963,000, staff estimated that the portion of the property tax bill going to Lake Forest Park would rise from $644.44 in 2026 to $677.80 in 2027. These figures were preliminary and did not include any potential additional levy.

Staff also presented proposed utility-rate increases:

Sewer: The monthly rate would rise to $95.41, an increase of $9.17. Staff attributed most of the increase to a 12.75% increase in the county's portion, while the city's portion would increase by 5%.
Surface water: The annual single-family residential charge would rise 10%, from $358.21 to $394.03. Staff said the increase would support operating costs, federal stormwater compliance requirements, and a stormwater coordinator position.

A resident questioned the sewer charges, the accuracy of county property valuations and the continued surface-water increases. Staff said the sewer bond had been retired and cited increasing federal compliance requirements and staffing costs as reasons for the surface-water increases.

Council approves traffic-camera fine changes

The council unanimously approved Ordinance 26-13-24, amending the municipal code governing automated traffic-safety camera fines.

The discussion focused on making the fine structure better reflect the violation speed rather than the number of prior violations. Council members said the change reinforces that driving significantly above the speed limit is dangerous regardless of whether a driver has been cited before.

Mayor and council members also reviewed traffic-camera data from school zones. While some results on 178th Street showed declining speeds, officials said violation trends on portions of 40th Place and 35th Street remained concerning.

The mayor said the city was having difficulty getting usable data from its camera vendor, Vera Mobility, limiting its ability to verify more recent trends. Officials said the program aims to reduce speeding and improve safety for students and families, not simply generate revenue.

Police leadership and staffing changes

The meeting opened with the swearing-in of Diego Zanella as Lake Forest Park's new police chief. Zanella thanked his family, city leadership, and department personnel, saying his priorities would be supporting officers and strengthening police-community relationships.

Police Commander Ross Adams, who competed for the chief's position, expressed support for Zanella's leadership and said he looked forward to continuing to work with him.

Later, the council unanimously approved a 6% market adjustment to the police commander's salary, effective Nov. 1, to help recruit for a vacant commander position.

The council also approved reallocating a vacant full-time support-services position into two roles: a 0.4 full-time-equivalent transport officer position without benefits and a 0.6 full-time-equivalent civilian property-and-evidence technician position with benefits.

Sound Transit permitting process clarified

City Attorney Kim Pratt told council members they have no direct role in reviewing Sound Transit's ST3 project permit applications because city code, previously adopted by the council, governs those decisions, which city staff and, where applicable, the hearing examiner handle.

The council's one narrow exception involves a potential appeal concerning a proposed free-standing parking garage covering more than three acres, which the council could hear on a closed record.

Pratt cautioned council members that submitting comments as private individuals on permit applications could still create perceptions of undue influence because of their elected positions.

Members also discussed residents' difficulties navigating large permit documents and finding public-comment deadlines. Staff said permit notices and application materials were available online, but agreed that links and information might be organized more accessibly.

Library reports strong use and expanded hours

Representatives of the King County Library System reported that the Lake Forest Park Library circulated approximately 423,677 items, had nearly 9,000 active patrons, and recorded more than 80,000 visits.

The library highlighted programs including discussion-based Wisdom Cafes, outdoor children's story times, and a free one-day arcade event.

Library officials also announced expanded Tuesday and Wednesday hours, opening at 10 a.m. instead of noon and staying open until 8 p.m.

Severe-weather shelter to continue

The council received an update on the city's planned withdrawal from its interlocal agreement with the King County Regional Homelessness Authority, which will no longer administer locally funded service contracts.

Lake Forest Park intends to continue supporting the severe-weather shelter serving the north end after Dec. 31, working with neighboring cities to establish a new agreement. City staff said it would reconcile the current funding arrangement before the transition.

The council expects to return to the withdrawal proposal at a later meeting.

Other business

The council also proclaimed Nov. 11 as Veterans Day and November 2026 as Native American Heritage Month.

Members heard updates on proposed pedestrian-safety improvements, continued discussion of financial-management policies and the city's strategic opportunity fund, and plans to transition council meeting broadcasts to YouTube as the cable channel prepares to go offline in November.

The meeting concluded with a closed session on collective bargaining. The council reported that it took no action following the session.

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