The Sedro-Woolley City Council on Nov. 12 adopted the city’s 2026 property tax ordinance with a 0% annual increase, after a public hearing and council discussion about residents’ ability to pay.

During Kelly’s presentation of the ordinance, staff provided two draft options — a 1% increase and 0% — and noted the city’s new-construction amount ($84,000) and a refund levy amount ($2,583). Kelly also reminded the council that ordinance documentation must be submitted to Skagit County by Nov. 28.

Council members spoke in favor of the 0% option. Councilman Cook said many local households are struggling and cited an estimate that about 20% of Sedro-Woolley residents earn under $35,000 a year; he said he favored relying on new-construction revenue and property-sale proceeds rather than raising taxes. Councilman Henderson urged fiscal restraint and argued the council should “not reach into the taxpayers’ pockets again,” recommending internal cuts before any tax increase. Councilman LaVaca voiced agreement with the 0% approach.

Kelly and the council discussed how property-tax revenue changes in practice: annual 1% increases and revenue from new construction are the primary mechanisms for incremental growth, while a levy lid lift requires voter approval and can reset levy capacity. Kelly summarized the city’s levy history and noted earlier levy lid lifts (2020, 2024) and the one-time 1% increases in earlier years.

After the discussion, Councilman LaVaca moved to pass the ordinance with a 0% increase; the motion was seconded and carried by voice vote.

What happens next: the adopted ordinance and required documentation will be transmitted to Skagit County before the Nov. 28 deadline. The ordinance sets the city’s adopted levy amount for budgeting and does not itself change the tax rate beyond the council’s 0% decision.

Sources: presentation and public hearing statements by Kelly (Finance Director) and council debate during the Nov. 12 Sedro-Woolley City Council meeting.