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File #: 25-1004    Version: 1
Type: decision Status: Passed
File created: 11/18/2025 In control: City Council
Agenda date: 11/25/2025 Final action: 11/25/2025
Title: 2026 Final Budget Balancing
Attachments: 1. 2026 Preliminary Operating Budget, 2. Presentation
Title
2026 Final Budget Balancing

Recommended Action
Committee Recommendation:
Approve the City Manager and Finance Committee Recommendation for the Final 2026 Preliminary Operating Budget, Utility Rates and Fees, Special (Dedicated) Funds, and Capital Budget and direct staff to prepare Ordinances for Council's consideration on December 9.

City Manager Recommendation:
Move to approve the City Manager and Finance Committee Recommendation for the Final 2026 Preliminary Operating Budget, Utility Rates and Fees, Special (Dedicated) Funds, and Capital Budget and direct staff to prepare Ordinances for Council's consideration on December 9.

Report
Issue:
Whether to approve the City Manager and Finance Committee Recommendation for the Final 2026 Preliminary Operating Budget, Utility Rates and Fees, Special (Dedicated) Funds, and Capital Budget and direct staff to prepare Ordinances for Council's consideration on December 9.

Staff Contact:
Michael Githens, Finance Director; 360-753-8465

Presenter(s):
Jay Burney, City Manager
Michael Githens, Finance Director

Background and Analysis:
Budget Sustainability and the impacts on the 2026 Operating Budget have been presented with continued discussions held from the prior year starting with the Council Retreat January 25,2025. Subsequent discussions were held on April 22, 2025, May 13, 2025, and June 13, 2025, with Study Sessions held on May 13, 2025 and June 24,2025.

The City Manager discussed the 2026 Preliminary Operating Budget with the City Council on August 19, 2025 and September 30, 2025. The preliminary budget incorporates feedback from those discussions. The budget maintains basic service levels and programs and includes limited enhancements in priority areas. Council also held a Public Hearing on November 3, to hear public testimony.

A Study Session was held on October 14, 2025 to discuss Business and Occupation Tax increase scenarios as well as proposed reductions.

The 2026 Preliminary Operating Budget i...

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