The Nailors sold 20 acres (8.1 ha) of their homestead to William B. Stevens in 1889, who filed the first plat for Sultan City that October. The Great Northern Railway placed a supply depot for its railroad workers in Sultan in 1891, meeting river steamboats and contributing to the town's early growth. Sultan gained its first sawmill in 1891 and a shingle mill in 1895, as the local economy transitioned away from mining and towards logging. Sultan was officially incorporated as a city on June 28, 1905. At the time, the city had a population of 700 people and three general stores, along with a variety of small industries. By 1912, the city had a public library, electrical service, paved streets, and was considering a plan to build a hydroelectric dam that would also provide municipal water service. A bridge across the Skykomish River was built in 1908 to connect to new farms on the south bank.
Sultan residents participated a civic improvement program during the 1950s and 1960s that upgraded or replaced several major facilities, often with assistance from the state government. A new city hall was opened in 1954, the elementary school was expanded in 1957, and a new landing field for airplanes and helicopters opened in 1958. The city annexed 33 acres (13 ha) of rural land to the southeast in 1958 and it was subsequently developed for housing. The Skykomish River Bridge was also replaced by a new span in 1961. The Snohomish County Public Utility District (PUD) constructed the Culmback Dam on the Sultan River, creating the Spada Lake reservoir and providing electricity and drinking water for Everett and much of the county beginning in 1965.
The city is located within the Skykomish Valley, which is flanked to the north and south by the Cascade foothills. Several prominent peaks of the mountain range are visible on the northern and eastern horizons, including Mount Pilchuck, Mount Index, Mount Persis, and Mount Stickney. The Sultan Basin is located on the north side of the Skykomish River and is a flat plain with some rolling hills.
Sultan businesses and employers provide approximately 1,010 jobs, and are primarily in the services and manufacturing industries. The city's largest employer is the Sultan School District, which provides 254 jobs.
Sultan is one of the smallest cities in Snohomish County, with a population of 5,146 at the 2020 census. The city's population has significantly increased since the start of suburban development in the late 1960s, reaching over 3,300 by 2000. Sultan's population grew an additional 20 percent between 2000 and 2005. The city government has made various preparations for additional population growth, including new connections to the Spada Lake water supply to supplement its own system. By 2035, the city and its surrounding urban growth area is expected to have a population of 8,369.
Of the 1,607 households, 44.4% had children under the age of 18 living with them, 52.5% were married couples living together, 12.3% had a single female householder with no spouse present, 6.3% had a single male householder with no spouse present, and 28.9% were non-families. 21.0% of all households were made up of individuals, and 6.1% had someone living alone who was 65 years of age or older. The average household size was 2.89 and the average family size was 3.36.
The median age in the city was 32.3 years. 30.7% of residents were under the age of 18; 8.4% were between the ages of 18 and 24; 32% were from 25 to 44; 21.6% were from 45 to 64; and 7.3% were 65 years of age or older. The gender makeup of the city was 51.5% male and 48.5% female.
Of the 1,211 households, 42.4% had children under the age of 18 living with them, 54.2% were married couples living together, 11.2% had a single female householder with no spouse present, and 29.1% were non-families. 23.5% of all households were made up of individuals, and 8.6% had someone living alone who was 65 years of age or older. The average household size was 2.76 and the average family size was 3.25.
The median age in the city was 32 years. 31.2% of residents were under the age of 18; 7.6% were between the ages of 18 and 24; 34.5% were from 25 to 44; 18.0% were from 45 to 64; and 8.7% were 65 years of age or older. The gender makeup of the city was 50.3% male and 49.7% female.
The median income for a household in the city was $46,619, and the median income for a family was $51,038. Males had a median income of $38,924 versus $26,096 for females. The per capita income for the city was $18,822. About 4.9% of families and 7.0% of the population were below the poverty line, including 9.1% of those under age 18 and 4.3% of those age 65 or over.
The city government has 15 full-time employees and had a budgeted expenditure of $11.1 million in 2016. The city funds various departments and services, including public sanitation, water and sewer systems, planning, and parks. Other services, including fire services and the library, are contracted out to regional agencies. The local police department was disbanded in 2008 and transitioned to services from the Snohomish County Sheriff's Office for public safety.
Sultan has four city parks, all located near downtown, and several athletic and recreational facilities. The city's largest park is the 76-acre (31 ha) Osprey Park, located along the eastern bank of the Sultan River and home to a regular salmon spawning ground. The park also features picnic tables, sports fields, basketball courts, and a dog park. Traveler's Park on U.S. Route 2 features a tree round from a 1,000-year-old Douglas fir that was donated to the city government in 1976 by a local logging company. Sultan opened a skate park in 2008. The city is also home to a Boys & Girls Club that opened at its current location in 2015, five years after a fire destroyed the previous club.
Public schools in the Sultan area are operated by the Sultan School District, which also covers nearby Gold Bar and other rural areas north and west of Index. The school district had an enrollment of approximately 1,992 students in 2016, with 104 total teachers. It has one high school, one middle school, and two elementary schools (of which one serves Sultan). The current high school was constructed in 1951 to replace an earlier building that was destroyed four years prior. A $56 million bond issue to upgrade the district's four schools and construct a new administrative building was rejected by voters in 2016. The Sky Valley Historical Society maintains a small local museum in the city's post office building in downtown Sultan.
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