Title
Public Hearing on the 2027 Preliminary Operating Budget
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Hold a public hearing on the 2027 Preliminary Operating Budget.
Report
Issue:
Whether to hold a public hearing on the 2027 Preliminary Operating Budget.
Staff Contact:
Joan Lutz, Senior Finance Manager, Finance Department, 360.753.8760
Presenter(s):
Michael Githens, Finance Director
Background and Analysis:
The 2027 budget process has been underway since June 2026. On June 9, the City Council received an overview of initial budget assumptions and dedicated General Fund revenues. Subsequent updates on August 17 and September 15 provided additional detail on operating assumptions, revenue and expenditure forecasts, and enhancement requests under consideration. Staff continued refining these elements to develop the preliminary budget and assess the City’s overall financial position.
The City Manager presented the 2027 Preliminary Operating Budget to the City Council on June 9, August 17, and September 15, 2026. The preliminary budget reflects feedback from these discussions and is designed to maintain core municipal services and existing programs while providing limited enhancements in priority areas. On October 20, 2026, the City Council received a further update on the budget-balancing position and the prioritization of enhancement requests.
The 2027 Preliminary Operating Budget includes appropriations for the following:
General Fund: Core municipal services, including Administration, Engineering, Finance, Fire, Human Resources, Information Services, Legal, Parks, Planning, Police, and Transportation.
Debt Service Funds: Payments supporting the City’s outstanding debt obligations.
Enterprise Funds: Utility operations for Drinking Water, Wastewater, Storm and Surface Water, and Waste ReSources.
Special Funds: Programs and activities supported by dedicated revenues, includ...
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