EVERETT — With a $14.5 million property tax levy lid lift set to fail in Edmonds, city officials are scrambling to figure out next steps to balance the budget.

As of Friday’s ballot drop, Proposition 1 was failing with only 41% of votes in favor. The result will likely lead to drastic reductions in city services.

The vote comes shortly after residents approved annexation into South County Fire in April, which will raise property taxes by about $65 per month for the median homeowner starting in January. Proposition 1 would have raised property taxes by the same amount and also would have gone into effect in January. While proponents of the ballot measure said it was essential to keep city services, opponents were concerned about large property tax increases.

“The levy’s failure pre

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