(The Center Square) – Yakima homeowners could face a $182 property tax increase next year if voters approve a levy to fill the city’s $9 million deficit; if not, failure could result in cuts to police and fire services.
The Yakima City Council weighed its options Tuesday, rejecting two motions for city staff to draft a $10 million or $7 million tax proposal before settling on one closer to $6 million. The deadline to submit a ballot measure for the general election is Aug. 5, so the officials must decide soon.
If approved, the tax hike would place that shortfall on the shoulders of city residents. According to U.S. Census data, 17% of Yakima lives in poverty, far outpacing the state and national rates.
With only about 53.5% of residents owning the home they live in, renters will likely shoulder that burden as landlords raise rates to avoid more taxes. However, if voters reject the tax proposal on the November ballot, the council may be forced to cut city services to fill the shortfall.
“We’ll never tax our way out of this,” Mayor Patricia Byers said. “We will grow our way out of this situation, but in order to grow our way out, we have to have all the services that our city has.”
The council considered several options to close the deficit, such as the $10 million property tax levy, raising taxes to cover 50% while relying on cuts for the other half, or a combination of sales tax and property tax hikes paired with cuts, with each of the three filling a third of the $9 million hole.
They ultimately voted 4-3 to direct city staff to draft a levy that will cost 50 cents per $1,000 of assessed property value. For owners with a median home value of $365,000, the tax increase would add $182.50 to their annual bill as the city’s median household income sits below $60,000.
The officials said that if the property tax levy is successful, it could generate around $6 million.
Assistant Mayor Matt Brown asked his peers who could afford the tax hike, with only two raising their hands. The dais was conflicted over fears of deterring economic growth by raising taxes but also facing the same consequence as a result of cutting spending on police and fire services.
The council is considering fee increases and other measures to bridge the remaining gap and avoid cuts if voters approve a levy. Still, the Yakima Fire Department and Police Department are each considering cutting a dozen officers and firefighters, with additional reductions on top.
The cuts would lead to weakened enforcement, slower response times and a fire station closing.
“Businesses are unlikely to want to move here if we don’t have the ability to stop crime,” Police Chief Shawn Boyle said. “Or move to another community where it’s able to better provide police services.”
The Yakima Parks and Recreation Division is also facing a $2 million reduction, which would cut its 2025-26 budget by nearly 30%. The Streets and Traffic Operations Division could face a $905,000 cut, reducing its funding by about 12%, with other options also on the table.
The city closed another deficit last December, passing a budget to carry spending through 2026.
Yakima intends to course correct this time to avoid falling into another shortfall next year. The current $9 million hole represents approximately 1.5% of all spending in the 2025-26 budget, or 5.4% of all general fund expenses, from which the city would make many of those identified cuts.
The council plans to vote on what proposal to take to the ballot this fall before the end of July.
“Yakima has been cutting and cutting, kicking the can down the road for years,” David Elofson, a former Yakima County Superior Court judge, testified Tuesday. “It’s time to make a difference.”
