Title
2026 Final Budget Balancing
Recommended Action
Committee Recommendation:
The Finance Committee recommends discussing final budget balancing for the 2026 budget.
City Manager Recommendation:
Discuss final budget balancing for the 2026 budget.
Report
Issue:
Whether to discuss final budget balancing for the 2026 budget.
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 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,...
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