Title
2026 Budget Process Briefing
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Receive a briefing on the 2026 Budget process.
Report
Issue:
Whether to receive a briefing on the 2026 Budget process.
Staff Contact:
Joan Lutz, Senior Budget and Finance Manager, 360.753.8760
Presenter(s):
Jay Burney, City Manager
Background and Analysis:
As with most cities in Washington, Olympia's expenses are outpacing revenue generated through sales, property, and business and occupation taxes. The six year forecast projects continued widen of the funding gap.
The City Council and City Manager's top priority is to develop a long-term sustainable budget. In January 2025, during the City Council annual retreat, strategies to address both balancing the 2026 budget as well as options to achieve long-term financial sustainability were discussed.
On June 13, 2025, the City Council held their mid-year retreat and received updates regarding what has been learned, the current status of the budget and the approach for balancing the 2026 operating budget
This agenda item will solidify any additional research or analysis needs, questions or concerns identified at the mid-year retreat and incorporate any adjustments the Finance Committee workplan as needed.
Climate Analysis:
No specific climate impacts are identified as a result of this briefing.
Equity Analysis:
Olympia residents and visitors rely on programs and services provided by the City. Balancing the operating budget in a way that maintains equitable and inclusive services while eliminating disparities will require an understanding of who is impacted by potential expenditure reductions or revenue increases.
Neighborhood/Community Interests (if known):
Developing long-term budget sustainability ensures that we continue to provide the essential services our community depends on to live, work, and play in Olympia.
Financial Impact:
No specific financial impacts ...
Click here for full text