With the City of Edmonds facing a projected deficit of approximately $1 million in 2013, and increasingly larger deficits in future years, Mayor Dave Earling Tuesday announced a hiring freeze effective immediately.

Edmonds’  five-year financial projections originally anticipated a deficit of $813,000 in 2013, a news release issued by the city said. That amount has grown to over $1 million with the adoption of the state budget that calls for discontinuing distributions of liquor excise taxes to cities — resulting in the loss of $211,000 of revenue per year. In addition, the state capped any future growth in distribution of liquor profit sharing to cities.

It’s estimated that the projected $1 million deficit in 2013 will grow to approximately $3 million in 2016 as revenue stays flat and expenses are projected to grow by over 3 percent a year. The Ccty said it anticipates reserves could be depleted by 2016 based on the current projections.

Edmonds will begin the formal budgeting process for 2013 this summer. “A hiring freeze now is made in anticipation of potential service reductions that could be necessary in the future given the state of the city’s finances,” the news release said.

Mayor Dave Earling will consider limited exceptions to the hiring freeze based on staffing needs for certain essential services the city provides to residents and businesses in Edmonds, the release added.