City of Cashmere weighs levy options amid rising costs, state tax limits

CASHMERE — With rising contract costs and tax limits that lag behind inflation, the Cashmere City Council on February 9 began an early-stage discussion of how the city may need to seek additional voter-approved revenue in the coming months.

Mayor Jim Fletcher, joined by council members Jeff Johnson, Chris Carlson, John Perry and Jayne Stephenson, reviewed charts outlining the city’s 2025 revenue sources and the structural constraints facing the general fund. Councilmember Joyce Williams popped in to let the council know she’d gotten an emergency phone call; the council later voted to formally excuse her absence. Director of Operations Steve Croci also attended in person.

In a written staff summary provided to council, Fletcher described the purpose of the discussion as understanding “our options and minimal financial increases to serve the City of Cashmere.” The charts compared current city tax revenue to inflation, noting that maintaining existing service levels requires growth beyond the state’s 1 percent annual property tax limit unless voters approve a higher levy.

The comparison did not yet include potential service restorations or anticipated contract increases, Fletcher noted. Future revenue increases, he wrote, will depend on the level of services expected and supported by the public.

Among the most significant pressures on the city’s operating budget is the contract with the Chelan County Sheriff’s Office. Over the past four years, law enforcement costs have increased by more than $200,000. Council members acknowledged that terminating the contract would not eliminate the expense — it would instead require the city to establish and fund its own police department at a significantly higher cost to taxpayers. Without either option, the city would effectively have no law enforcement within its boundaries.

Still, Fletcher made clear that the sheriff’s contract is only one part of a broader structural issue. The cost of everything has gone up, and the City isn’t facing shortfalls because they’re buying too many paperclips. Reducing costs will mean reducing services, and addressing costs where they are and where they will further rise to will mean raising revenue.

But state law caps annual property tax increases at 1 percent without voter approval, a rate that has not kept pace with either inflation or rising service costs. While sales tax provides another revenue stream, it fluctuates with economic activity and cannot reliably absorb long-term increases in fixed expenses.

Council members reviewed several potential tools, including a levy lid lift, a transportation benefit district, the possibility of a parks or emergency services district, and additional sales tax options that would require voter approval. No decisions were made, and Fletcher emphasized that any ballot measure would require public hearings and formal documentation before filing deadlines.

The discussion reflected a recurring tension in Cashmere’s budget history. The city has not pursued significant new revenue in recent years, and residents have historically been cautious about tax increases. As a result, Cashmere has periodically approached what amounts to a financial cliff — moments when rising costs outpace static revenue, forcing either service reductions or renewed conversations about taxes.

Some members suggested exploring one-time solutions, such as the sale of surplus city property, while others favored more permanent revenue mechanisms that would stabilize the budget over multiple years.

Council members agreed that further public discussion is necessary before any proposal is finalized. Fletcher indicated that future meetings will narrow the options and determine whether a measure should be placed before voters later this year.

For now, the message was clear: maintaining current service levels, particularly public safety, will require either new revenue or reductions elsewhere, and those reductions will more likely be elimination of some services.

Residents should know, however, that the Mayor and city council are addressing the issue in a transparent way, and that in the end, it will be up to the voters to decide.

Andrew Simpson: 509-433-7626 or andrew@ward.media