Title
Public Hearing on the 2027 Preliminary Operating Budget
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Hold a public hearing on the 2027 Preliminary Operating Budget.
Report
Issue:
Whether to hold a public hearing on the 2027 Preliminary Operating Budget.
Staff Contact:
Joan Lutz, Senior Finance Manager, Finance Department, 360.753.8760
Presenter(s):
Michael Githens, Finance Director
Background and Analysis:
The 2027 budget process has been underway since June 2026. On June 9, the City Council received an overview of initial budget assumptions and dedicated General Fund revenues. Subsequent updates on August 17 and September 15 provided additional detail on operating assumptions, revenue and expenditure forecasts, and enhancement requests under consideration. Staff continued refining these elements to develop the preliminary budget and assess the City’s overall financial position.
The City Manager presented the 2027 Preliminary Operating Budget to the City Council on June 9, August 17, and September 15, 2026. The preliminary budget reflects feedback from these discussions and is designed to maintain core municipal services and existing programs while providing limited enhancements in priority areas. On October 20, 2026, the City Council received a further update on the budget-balancing position and the prioritization of enhancement requests.
The 2027 Preliminary Operating Budget includes appropriations for the following:
1. General Fund: Core municipal services, including Administration, Engineering, Finance, Fire, Human Resources, Information Services, Legal, Parks, Planning, Police, and Transportation.
2. Debt Service Funds: Payments supporting the City’s outstanding debt obligations.
3. Enterprise Funds: Utility operations for Drinking Water, Wastewater, Storm and Surface Water, and Waste ReSources.
4. Special Funds: Programs and activities supported by dedicated revenues, including Inspire Olympia, Lodging Tax, the Parking and Business Improvement Area, and Housing and Homeless Response programs.
5. Operating Transfers: Transfers between funds, including revenues collected through special revenue and utility funds that support projects in the capital budget.
The 2027 Preliminary Operating Budget includes total appropriations of $282,662,035, of which $131,223,092 is appropriated from the General Fund.
This public hearing provides an opportunity for the public to comment on the 2027 Preliminary Operating Budget before the City Council considers adoption. An additional public hearing is scheduled for November 17, 2026, with adoption of the 2027 Operating Budget scheduled for November 24, 2026. Adoption of the 2026-2030 Capital Facilities Plan is scheduled for December 8, 2026.
Climate Analysis:
No specific climate impacts are identified as a result of holding the public hearing. However, the 2027 Operating Budget contains funding to continue our Climate Work Plan.
Equity Analysis:
No specific equity impacts are identified as a result of holding the public hearing. However, the 2027 Operating Budget contains funding to continue our internal/external Equity Work Plans.
Neighborhood/Community Interests (if known):
Members of the community may have an interest in this agenda item as it concerns City finance, direct delivery of services and programs, and fiscal governance.
Financial Impact:
The Preliminary 2027 Operating Budget appropriates $282.7 million of which $131.2 million is General Fund.
Options:
1. Hold a public hearing on the Preliminary 2027 Operating Budget.
2. Do not hold a public hearing on the Preliminary 2027 Operating Budget.
3. Reschedule the public hearing to a future date.
Attachments:
2027 Preliminary Operating Budget