Both Sides of the Fence

Edmonds · Esperance · Annexation 2026

Annexation is a bad deal for both sides of the fence.

The City of Edmonds plans to absorb Esperance (about 4,500 people and 464 acres) through an agreement with Snohomish County, with no public vote. Edmonds residents would take on the cost of serving thousands of new neighbors on a budget that is already in deficit. Esperance residents would pay more for services that are being cut. Neither community has been asked.

$5.3MProjected Edmonds general-fund deficit in 2027, growing to $14.8M by 2032.City of Edmonds 2026 Financial Outlook
62City positions cut in the 2025–26 budget. Two police patrol positions were cut in December 2025.Council record
~$2MProjected yearly net from annexation once required new staff are counted, down from the $3.7M first announced.BERK Consulting, Aug. 2026
Dec 2028When the 20% utility tax that the annexation math depends on expires.Council record, Jul. 28, 2026

For Edmonds residents

Edmonds is being asked to grow before it has steadied itself.

Annexation isn't free for the city doing the annexing. Every new resident needs police, parks, roads and drainage on day one, but the revenue arrives later, if it arrives at all. Here is what the public record says Edmonds would be taking on.

1 More residents, stretched services

Edmonds serves about 43,000 people. Annexation adds roughly 4,500, about 10% more residents for the same City Hall.

The City's own consultant says serving them takes 7.75 new employees: five police officers, 1.75 parks, recreation and human-services staff, and one public-works employee. Those hires would come right after the City cut 62 positions and two patrol officers.

No plan has been published for paying those salaries in year one, before new revenue arrives. If hiring lags, current residents share an already thin police and parks staff with a larger city.

2 Revenue that can't keep pace

State law limits growth in the City's regular property-tax levy to 1% a year. Meanwhile, from 2019 to 2023 City spending grew 44.9% while revenue grew 27.8%, by the Mayor's own figures.

When the City asked voters for a $14.5M levy lift in November 2025, 58.8% said no. Since then the Council has doubled the utility tax to 20% (about $156 a year per household) and added two sales-tax increases. Edmonds' sales tax is now 10.7%, tied for highest in Washington.

The Public Works Director has said on the record that the annexation's projected net depends on that 20% utility tax, which expires in December 2028. The City has not published what the deal looks like at 10%. If the numbers don't hold, the gap lands on existing taxpayers.

3 Infrastructure bills come with the territory

When a city annexes an area, it takes over responsibility for the local roads, sidewalks and stormwater systems there. The Council has already deferred part of the area (“Area 2”) because of the 84th Ave W bridge, a known cost. Every published estimate still covers the whole area, so nobody has said what Area 1 alone brings in once it's staffed.

The City's record on big projects is not reassuring. The wastewater plant's gasifier was budgeted at $26M, now costs $31M, and has never run consistently. Since 2023, biosolids have been trucked more than 300 miles to Oregon.

Every projection also assumes 2025 home values. County resale prices are now falling and listings are up sharply. When values fall, a fixed levy doesn't, so the tax rate rises on everyone who stays.

For Esperance residents

You'd pay more, and you haven't been asked.

  • $364–$480 more a year on a median Esperance home ($821,700), mostly in stormwater and utility charges, according to the City's consultant.
  • No ballot. A state sales-tax credit for annexations (RCW 82.14.415) can't be started after July 1, 2028, and the City Attorney says holding an election would forfeit it. So the City is using an agreement with the County instead of a vote.
  • You've said no before. Esperance voters have rejected annexation five times since the 1960s, most recently in 2005.
  • The original reason is gone. The push for annexation grew out of a fight over a County rezone in 2025. In December 2025, the County excluded Esperance from those zoning changes.
  • No promised response times. Supporters cite slow sheriff response, but Edmonds has just cut two patrol positions and hasn't committed to any response time in writing.

Pay more. No vote.

That's the deal as it stands. State law still gives you a way to force one. See your rights ↓

The other side

What supporters say, and what the record shows.

The City and the Esperance Neighborhood Alliance support annexation. Their case deserves a fair hearing. Here it is, alongside the public record.

They sayThe record shows
Annexation brings Edmonds $3.7M a year.That was before staffing. The consultant's final report puts the net at about $2M, and the City says that figure depends on a tax that expires in 2028.
Esperance will get faster police response than the Sheriff provides.Edmonds cut two patrol positions in December 2025 and expects more overtime. No response time has been committed to in writing.
Annexation protects Esperance from County zoning changes.The County excluded Esperance from those changes in December 2025.
The timeline is needed to capture a state tax credit.The credit's deadline is driving the schedule. The City hasn't published what the credit is worth per year, or why it outweighs a vote.

Take action

Ask for the numbers. Ask for a vote.

If you only ask one question

“What is the annexation's net at a 10% utility tax, and will the City publish that number before it writes an ordinance?”

The City's consultant can produce the figure. Ask it at a Council meeting or in writing, and note the date of the answer.

Edmonds residents

Tell the Council that growth shouldn't come before a balanced budget. Ask who pays for 7.75 new employees in year one, and what happens to the annexation's net when the 20% utility tax expires.

Esperance residents

Ask the City to commit, in writing, to announcing the referendum window and signature threshold the day it passes any annexation ordinance. Find out your precinct's turnout in the last state general election.

Everyone

Ask for fiscal decisions to be made at evening meetings residents can attend. The annexation resolution was approved at 11 a.m. on a Tuesday. Ask for a ballot.

Your rights: the City can skip the election, but not the referendum

Who
Registered voters living in the annexed area.
When
Within 45 days after the annexation ordinance passes.
How many
Signatures equal to 15% of the votes cast in the area at the last state general election. For an area of about 4,500 people, that's a few hundred signatures.
Then
The ordinance is suspended and the question goes to the area's voters.
Law
RCW 35A.14.470. A parallel route (RCW 35A.14.295–.299) uses a 10% threshold; which applies depends on how the City structures its action.

This is not legal advice. Confirm every step with the Snohomish County Auditor, and with a lawyer if you organize a petition.

How we got here

The timeline

  1. City spending grows 44.9%; revenue grows 27.8%.
  2. 62 positions cut; a $6M interfund loan is taken in anticipation of a levy.
  3. Voters reject the $14.5M levy lift, 58.8% to 41.2%.
  4. Utility tax doubled to 20% (4–3). Two patrol positions cut. County excludes Esperance from rezone.
  5. New 0.1% transportation sales tax; Edmonds reaches 10.7%.
  6. Consultant projects $3.7M annexation net. S&P downgrade. State Auditor finds a material weakness. Utility tax extended through 2028.
  7. Final consultant report: about $2M once staffed. Council approves the annexation resolution 6–0 at an 11 a.m. weekday meeting; Area 2 deferred.
  8. Fiscal consultant warns of a 2029 cliff. Moody's downgrade reported. First public meeting on annexation, Sept. 30.
  9. 2027–28 budget adopted.
  10. Deadline for the state annexation sales-tax credit, which is what's driving the schedule.
  11. The 20% utility tax expires.
  12. The budget cliff.

Sources

Every figure comes from the public record.

Figures on this page were compiled from public documents by The Edmonds Record, which publishes full citations. We are not affiliated with it. Underlying sources include:

  • City of Edmonds 2026 Financial Outlook; Mayor's State of the City (2024, 2025)
  • BERK Consulting annexation fiscal analysis (Jul. 14 and Aug. 12, 2026)
  • Baker Tilly budget-retreat presentation to Council (Sep. 11, 2026)
  • S&P Global rating action (Jul. 16, 2026); Moody's (Sep. 2026, as reported)
  • Washington State Auditor report (Jul. 24, 2026)
  • Edmonds City Council records and votes (Dec. 2, 2025; Dec. 16, 2025; Jul. 28, 2026; Aug. 18, 2026)
  • Snohomish County Elections certified results (Nov. 2025)
  • NWMLS market snapshots (Aug.–Sep. 2026)
  • RCW 82.14.415; RCW 35A.14.470; RCW 35A.14.295–.299; Ch. 36.93 RCW
  • City of Edmonds Esperance Annexation page; HeraldNet reporting

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