Title
Discuss City Council Mid-Year Retreat Budget Sustainability Agenda Topics
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Discuss the City Council Mid-Year Retreat Budget Sustainability agenda topics.
Report Issue:
Whether to discuss the City Council Mid-Year Retreat Budget Sustainability agenda topics.
Staff Contact:
Jay Burney, City Manager, 360.753.8740
Presenter(s):
Jay Burney, City Manager
Background and Analysis:
Like most cities in Washington, Olympia’s expenses are outpacing revenue generated through sales, property, and business and occupation tax. The City Manager and the City Council’s top priority is to develop a long-term sustainable budget. In January 2025, during the City Council annual retreat, they discussed strategies to address both balancing the 2026 budget as well options for achieving long-term financial sustainability.
The City Council held a study session on May 13 where they were briefed on revenue and expenditures through the first quarter of 2025, Business & Occupation Tax revenue considerations, the Olympia Metropolitan Park District Interlocal agreement and revenue commitments that are sunsetting at the end of 2025, factors that may impact the 2026 budget, and an update on Priority Based Budgeting.
The City Council is also dedicating a significant amount of time at their Mid-Year Retreat, scheduled for June 13, to continue the conversation on how to approach balancing the 2026 budget and strategies to address long-term financial sustainability. The purpose of this item is to prepare for the Mid-Year Retreat and seek guidance from the Committee and on the budget sustainability topics and additional information needed for this discussion.
Climate Analysis:
There are no climate concerns related to this item.
Equity Analysis:
Olympia residents and visitors rely on programs and services provided by the City. Balancing the operating budget in a way that maintains equitable and inclusive services while eliminating disparities will require an understanding of who is impacted by potential expenditure reductions or revenue increases.
Neighborhood/Community Interests (if known):
Items on the Finance Committee agenda will be of interest to the community and Council-appointed advisory committees, commissions and boards.
Financial Impact:
This discussion and subsequent City Council Study Session will aid the Council and the City Manager in developing revenue and expense options for the 2026 Budget.
Options:
1. Discuss the City Council Mid-Year Retreat Budget Sustainability agenda topics.
2. Do not discuss the City Council Mid-Year Retreat Budget Sustainability agenda topics.
3. Take another action.
Attachments:
Draft Budget Sustainability Topics