Title
2027 Proposed Operating Budget - Second Public Hearing
Recommended Action
Committee Recommendation:
Not referred to a committee
City Manager Recommendation:
Hold a second public hearing on the 2027 Proposed Operating Budget
Report
Issue:
Whether to hold a second public hearing on the 2027 Proposed Operating Budget
Staff Contact:
Mike Githens, Finance Director; 360-753-8465
Presenter(s):
Mike Githens, Finance Director
Background and Analysis:
The 2027 budget process began in June 2026. On June 9, City Council received an initial update outlining budget assumptions and dedicated General Fund revenues. Subsequent updates provided additional detail on operating assumptions, revenue and expenditure forecasts, and potential enhancement requests. Staff have continued refining these elements to develop the proposed budget and its key financial components.
The City Manager presented and discussed the 2027 Proposed Operating Budget with City Council on June 9, August 17, September 15, October 20, and November 10, 2026. The proposed budget reflects feedback received during those discussions, maintains basic service levels and programs, and includes limited enhancements in priority areas.
At the November 10 meeting, City Council received an update on budget balancing and discussed the City Manager's recommended enhancements. This second public hearing provides an opportunity for the public to provide testimony on the proposed budget.
The 2027 Proposed Operating Budget includes appropriations to fund:
1. General Fund - basic core municipal services such as Administration, Engineering, Finance, Fire, Human Resources, Information Services, Legal, Parks, Planning, Police, and Transportation.
2. Debt Service Funds - debt service to support outstanding debt obligations.
3. Enterprise Funds - Drinking Water, Wastewater, Storm and Surface Water, and Waste ReSources utility operations.
4. Special Funds - appropriations for Inspire Olympia, Lodging Tax, Parking and Business Improvement Area, and Housing/Homeless Response programs.
5. Operating transfers between funds, including revenues collected through special revenue and utility funds that will be transferred to the capital budget to support projects.
The 2027 Proposed Operating Budget appropriates a grand total of $248,687,812 for expenditures of which $131,223,092 is appropriated within the General Fund.
City Council will hold a virtual meeting on November 24, 2026, to discuss final budget balancing and consider a motion to approve the City Manager and Finance Committee recommendations for the Final 2027 Proposed Operating Budget, Utility Rates and Fees, Special (Dedicated) Funds, and Capital Budget. If approved, staff will be directed to prepare the necessary ordinances for City Council consideration on December 8, 2026.
Adoption of the 2027 Operating Budget and the 2027-2032 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 deals with City finance, direct delivery of services and programs, and fiscal governance.
Financial Impact:
The Proposed 2027 Operating Budget appropriates $248.7 million of which $131.2 million is General Fund.
Options:
1. Hold a second public hearing on the Proposed 2027 Operating Budget.
2. Do not hold a second public hearing on the Proposed 2027 Operating Budget.
3. Reschedule the public hearing to a future date.
Attachments:
2027 Preliminary Operating Budget
Presentation