Medina, the suburb where Bill Gates lives, says it's strapped for cash

The City of Medina says it could be in deep financial trouble if it can't collect more revenue from taxpayers.

Medina, one of the richest cities in America, is home to about 3,000 residents — including top tech execs Bill Gates and Jeff Bezos. City officials outlined the problem in a June newsletter saying they would face a half million dollar deficit next year and a cumulative deficit of $3.3 million by 2025.

The cost of providing police, fire, and parks services has outpaced the city's growth. The city has also implemented aggressive security programs.

In 2009, Medina implemented an “automatic license plate recognition” project, according to the Seattle Times. According to the Times, if a vehicle is reported stolen or being driven by a homicide suspect, the police could then “leap into action,” according to their police chief at the time.

To raise more revenue, the city will ask voters to lift a levy lid on property tax increases so it can maintain those services for the next 10 years.

The measure, which will be on the November ballot, would increase property tax bills by 5% annually from 2021 to 2025.

Medina says it has used cost-saving measures and dipped into reserves for the last 17 years, but it’s getting to the point where that isn’t enough to cover costs.

Currently local governments can raise property taxes by 1% each year without voter approval. On a $2 million home, property taxes would increase by $400 per year or about $33 per month in 2020. By 2025 those homeowners would pay an extra $589 per year or about $49 per month, according to the city.

In 2019, Medina homeowners with a median-priced home of $2.05 million paid about $18,475, according to the King County Assessor's Office.

"There probably is a disconnect that people think this is a wealthy community; why doesn’t the city government have that additional revenue," City Manager Michael Sauerwein said.

Medina has the third-highest median home value in King County, according to the assessor’s office behind neighboring Hunts Point and Yarrow Point.

However, the city said its property tax rate is the fourth lowest in the county.

"The city over the last 18 years has really burned through our reserves and reached what I call a crossover point," Sauerwein said. "Our expenditures are running into each other, and we're going to have to bend one of those curves."

If the measure fails, Medina says it will reassess which services it will offer to residents.

Medina Mayor Cynthia Adkins and City Manager Michael Sauerwein plan to host a coffee meeting with residents Wednesday from 3-5 p.m. at Queen Bee Coffee, 8805 Points Driver Northeast, Clyde Hill.