Title
Business & Occupation Tax Revenue Options Discussion
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Discuss Business & Occupation (B&O) Tax revenue options.
Report
Issue:
Whether to discuss B&O Tax revenue options.
Staff Contact:
Shawn Ward, Interim Finance Director, 360.753.8465
Presenter(s):
Jay Burney, City Manager
Thomas Donnelly, Finance Manager
Brandie Andrews, Tax and License Financial Analyst, Tax Review Team Lead
Background and Analysis:
Throughout 2024, budget sustainability was a key topic of discussion. To balance the 2025 budget and move to a more sustainable budget, the focus was on reducing expenditures, which resulted in personnel reductions totaling 26.75 full-time equivalents (FTE's) with 18 of these reductions coming from the General Fund.
In January 2025, during the City Council retreat, the discussion shifted towards priority-based budgeting and exploring various revenue options. The Finance Committee, as part of their 2025 Work Plan, requested additional research as it relates to budget sustainability.
At the February 18, 2025, Finance Committee meeting, the Finance Committee requested additional information related to B&O revenue options to enable Council to get a better understanding of who would be impacted.
Staff will provide Finance Committee research results from B&O Tax revenue options.
Climate Analysis:
This agenda item is expected to result in no impact to greenhouse gas emissions.
Equity Analysis:
This agenda item is not expected to further impact known disparities in our community.
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:
There is no financial impact associated with this agenda item.
Options:
1. Discuss Business & Occupation (B&O) Tax revenue options.
2. Do not discuss Business & Occupation (B&O) Tax revenue...
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