Everett is staring at a $7.2 million gap between projected revenue and baseline expenses for 2027, and the real shortfall will be larger once mandatory jail fees and legal costs are factored in.

Finance Director Chris Godwin presented the city's 2027 revenue forecast on Thursday, Sept. 24, projecting $187.8 million in general government revenue against $195 million in baseline expenses, the Everett Post first reported. The city would start the year with a $50.2 million fund balance and end with $43 million.

That $43 million sits just $5.4 million above the city's required 20% reserve of $37.6 million. The baseline does not yet include costs Godwin called "inherently non-discretionary," including surging jail fees and state-mandated increases in indigent defense spending.

The gap could grow.

Jail fees jolt the budget

Mayor Cassie Franklin said the cost of booking a single person into the Snohomish County jail rose 130%. The increase is part of Snohomish County Executive Dave Somers's proposed 2027–28 biennial budget, which addresses a $56 million county deficit with $22 million in spending cuts and a proposed 1% property tax levy increase.

"The cost of just simply booking somebody into jail went up, like 130 percent, which is pretty extraordinary," Franklin said at the Sept. 24 presentation.

Franklin said she is circulating a letter co-signed by other Snohomish County mayors to the County Council.

The letter asks the council to either reduce the new jail rates or phase them in over several years.

A similar phased approach was used when jail rates last spiked several years ago, Franklin said.

The exact dollar impact of the fee increase on Everett's budget has not been disclosed.

Boeing North Line lifts B&O tax outlook

Business and occupation (B&O) tax revenue is projected to rebound to $23.6 million in 2027, a $3 million increase over 2026. Godwin attributed the jump to Boeing's North Line, a fourth 737 MAX assembly line that began production in Everett on July 6 with about 1,000 workers.

B&O revenue had dropped $1.7 million during 2026, falling from a projected $22.3 million to a revised $20.6 million. Godwin said forecasters expected the dip and projected a bounce-back once the North Line ramped up.

Water, sewer and golf fees reshape revenue

The city's "other taxes" category is projected to more than double, rising from $10 million in 2025 to $23.4 million in 2027. Two drivers account for most of that growth: a water and sewer utility tax increase the City Council approved earlier in 2026, raising the rate from 6% to 12%, and a payment-in-lieu-of-taxation (PILOT) on golf revenues at Legion Memorial and Walter E. Hall golf courses. The golf PILOT returns to the general fund for the first time in years after bond debt was paid down.

Property tax, the city's largest single revenue source at $43.2 million, is projected to grow by about $700,000. Sales tax, at $42.3 million, is expected to rise $1.8 million, driven by food service, accommodation, wholesale and healthcare spending. Retail and construction sales tax are forecast to stay flat.

Of Everett's 9.9% sales tax rate, the city retains only 0.85 percentage points. The state receives 6.5%, Sound Transit receives about 1.4%, and Snohomish County gets the rest.

What's next

The Everett City Council holds a revenue workshop Wednesday, Sept. 30. Mayor Franklin's proposed 2027 budget is expected during the first week of October, with the full document available for public review in late October.

Three public hearings are scheduled for Nov. 4, 10 and 18. Final budget adoption is expected on or around Dec. 2.