Title
Approval of an Ordinance Amending Olympia Municipal Code Section 3.50.510 Relating to the Sales and Use Tax for Criminal Justice as Adopted Pursuant to City of Olympia Ordinance No. 7439 - FIRST AND FINAL READING
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve, on first and final reading, the Ordinance Amending Olympia Municipal Code Section 3.50.510 Relating to the Sales and Use Tax for Criminal Justice as Adopted Pursuant to City of Olympia Ordinance No. 7439.
Report
Issue:
Whether to approve on first and final reading the Ordinance Amending Olympia Municipal Code Section 3.50.510 Relating to the Sales and Use Tax for Criminal Justice as Adopted Pursuant to City of Olympia Ordinance No. 7439.
Staff Contact:
Mike Githens, Finance Director, 360.753.8465
Presenter(s):
None - Consent Calendar Item
Background and Analysis:
This Ordinance amends OMC Section 3.50.510 to incorporate additional legislative findings of fact related to the Criminal Justice Training Commission (CJTC) requirements. Police Chief Parker has received written verification from the CJTC dated February 17, 2026, confirming the City of Olympia’s Sales and Use Tax submittal pursuant to RCW 82.14.345.
Historical Background
In 2025, the Washington State Legislature enacted HB-2015, establishing two new funding pathways for cities and counties to support public safety initiatives. The law, which became effective on July 27, 2025, created a three-year, $100 million grant program aimed at hiring, retaining, and training police officers and co-responders. It also authorized a new councilmanic 0.1% local sales and use tax for broad public safety and criminal justice purposes.
While the grant program and the councilmanic tax are separate funding tools, HB-2015 requires jurisdictions to meet specific policy and training standards to be eligible for either. A city council may implement the 0.1% sales tax without applying for or receiving grant funds; however, the jurisdiction must still satisfy the grant’s policy and training requirements to impose the tax. Additionally, to qualify for grant funding, a city must have received funds from or authorized at least one of three public safety sales taxes-two existing options and the new tax created under HB-2015.
The City of Olympia currently imposes both the Criminal Justice Sales Tax and the Public Safety Sales Tax, thereby meeting the eligibility criteria for the grant program and the new councilmanic tax. In August 2025, the City Council was briefed on HB-2015 and its implications, including the opportunity to implement the new 0.1% sales tax pending review by the Criminal Justice Training Commission.
On September 30, 2025, the City Manager presented updated budget assumptions and projected general fund revenues, estimating that the proposed 0.1% increase would raise Olympia’s total sales tax rate to 9.9% and generate approximately $3 million annually. Following this presentation, the City Council directed staff to proceed with the implementation of the councilmanic Public Safety Sales Tax authorized under HB-2015.
On October 18, 2025, the City Council approved Ordinance No. 7439 adopting the 0.1% councilmanic sales and use tax, contingent upon successful review by the Criminal Justice Training Commission and completion of any required administrative steps. The additional revenue will be dedicated to enhancing Olympia’s public safety infrastructure, including staffing, training, and community-based response programs. OPD Chief Parker reports that the department has provided the CJTC with the requested information and anticipates approval.
Climate Analysis:
This agenda item is expected to result in no impact to greenhouse gas emissions or the climate.
Equity Analysis:
Sales taxes are considered regressive because they apply uniformly to most necessary household expenditures. A higher sales tax may burden lower-income households who already spend a larger portion of their income on such purchases.
Neighborhood/Community Interests (if known):
Members of the community may have an interest in this agenda item as it deals with City finances, fiscal governance, and public safety
Financial Impact:
It is estimated that a sales tax of .01% will generate approximately $3 million per year.
Options:
1. Move to approve on first and final reading the Ordinance Amending Olympia Municipal Code Section 3.50.510 Relating to the Sales and Use Tax for Criminal Justice as Adopted Pursuant to City of Olympia Ordinance No. 7439.
2. Do not approve the ordinance. This may lead to the City being ineligible for grants or certain revenue under HB 2015.
3. Take other action.
Attachments:
Ordinance