Title
Approval of the Recommended 2026 Utility Rates, General Facility Charges, Impact Fees, and Special (Dedicated) Revenues Including Inspire Olympia, Lodging Tax, Parking & Business Improvement Area (PBIA), and Housing/Homeless Response Program Budgets
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve and forward to the full Council the recommended 2026 Utility Rates, General Facility Charges, Impact Fees, and Special (Dedicated) Revenues including Inspire Olympia, Lodging Tax, Parking & Business Improvement Area (PBIA), and Housing/Homeless Response Program Budgets.
Report
Issue:
Whether to approve and forward to the full Council the recommended 2026 Utility Rates, General Facility Charges, Impact Fees, and Special (Dedicated) Revenues Including Inspire Olympia, Lodging Tax, Parking & Business Improvement Area (PBIA), and Housing/Homeless Response Program Budgets.
Staff Contact:
Joan Lutz, Senior Budget & Fiscal Manager, Finance Department, 360.753.8760
Presenter(s):
Michael Githens, Finance Director
Susan McLaughlin, Community Planning and Economic Development Director
Tim Smith, Deputy Community Planning and Economic Development Director
Tammy LeDoux, Parks Finance & Policy Coordinator
Kate Davis, Olympia School District
Tony Matiatos, North Thurston School District
Mark Russell, Public Works Director
Thanh Jeffers, Deputy Public Works Director
Mike Vessey, Drinking Water Utility Director
Gary Franks, Interim Water Resources Director
Ron Jones, Interim Director of Waste ReSources
Marygrace Goddu, Cultural Access Program Manager
Amelia Layton, Senior Program Specialist - Lodging Tax
Jennica Machado, Economic Development Director
Jacinda Steltjes, Housing Division Program Manager
Kim Kondrat, Homeless Services Program Manager
Background and Analysis:
The City Manager presented the Preliminary 2026 Operating Budget to City Council on Tuesday, October 14. This presentation also included briefing on the findings from SME Consulting on a “Olympia and Comparable Cities Studies”, the City’s long-term financial strategy, and proposal of Business & Occupation Tax Increase scenarios. In addition, the Preliminary Capital Facilities Plan, 2026-2031 Financial Plan, was presented by staff to the Finance Committee on August 14. The 2026 preliminary operating and capital budgets include revenue and expenses from utility rates, General Facility Charges (GFCs), impact fees, and special (dedicated) revenues including: Inspire Olympia, Lodging Tax, Parking, Parking & Business Improvement Area (PBIA), and Housing/Homeless Response program budgets.
Staff will present the Committee with recommendations for the 2026 utility rates and GFCs for the four utilities - Drinking Water, Wastewater, Storm and Surface Water, and Waste Resources. Transportation, Parks, Olympia School District, and Development Impact fees will be presented as well as the budgets for Inspire Olympia, Lodging Tax, Parking, PBIA, and Housing/Homeless Response.
Climate Analysis:
The Climate Analysis framework will be completed by staff, if applicable, for the individual work items funded by Council.
Equity Analysis:
The Equity Analysis framework will be completed, if applicable, for the individual work items funded by Council.
Neighborhood/Community Interests (if known):
Members of the community may have an interest in this agenda item as it deals with City finances and fiscal governance.
Financial Impact:
The individual presenters will share financial impacts as part of their presentation.
Options:
1. Move to approve and forward to the full Council the recommended 2026 Utility Rates, General Facility Charges, Impact Fees, and Special (Dedicated) Revenues including Inspire Olympia, Lodging Tax, Parking & Business Improvement Area (PBIA), and Housing/Homeless Response Program Budgets.
2. Move to approve and forward to the full Council the recommended 2026 Utility Rates, General Facility Charges, Impact Fees, Special (Dedicated) Revenues including Inspire Olympia, Lodging Tax, Parking, Parking & Business Improvement Area (PBIA), and Housing/Homeless Response based on updates from the Committee.
3. Do not approve and forward to the full Council the recommended 2026 Utility Rates, General Facility Charges, Impact Fees, and Special (Dedicated) Revenues including Inspire Olympia, Lodging Tax, Parking & Business Improvement Area (PBIA), and Housing/Homeless Response Program Budgets. Do not approve the recommended 2026 utility rates, general facility charges, impact fees, special revenues, and other special revenue including Inspire Olympia, Lodging Tax, Parking, PBIA, and Housing/Homeless Response program
Attachments:
None