Title
Review of the Proposed 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:
The Finance Committee moved to approve the proposed 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, and directed that they be forwarded to the full City Council for review.
City Manager Recommendation:
Review the proposed 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 review the proposed 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 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.
The City Manager presented the Preliminary 2026 Operating Budget to City Council on Tuesday, October 14. In addition to the preliminary budget, this presentation included briefings on the findings from SME Consulting on a “Olympia and Comparable Cities Studies,” the City’s long-term financial strategy, and proposed Business & Occupation Tax increase scenarios. The Preliminary Capital Facilities Plan, 2026-2031 Financial Plan, had been presented by staff to the Finance Committee for review on August 14.
The Utility Advisory Committee reviewed the rates and fees at their October 2nd meeting and voted unanimously to recommend approval. The proposed 2026 rates and fees were approved by the Finance Committee on October 20th.
The purpose of this agenda item is for staff to present Council with recommended 2026 utility rates, GFC’s, impact fees and special (dedicated) revenue budgets. The presentation will address 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; and recommended budgets for Inspire Olympia, Lodging Tax, Parking Services, Parking & Business Improvement Area (PBIA), and Housing and Homeless Response.
Once direction from Council has been received, staff will prepare the appropriate ordinances for approval on December 16, 2025.
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. Review the proposed 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. Do not review the proposed 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.
3. Review the proposed 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 at another time.
Attachments:
Utility Advisory Committee Letter
Letter from Olympia Master Builders