Title
Consideration of the Recommended 2026 Proposed Operating, Special (Dedicated) Funds, and Capital Budget for Final Budget Balancing
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve a recommendation to the City Council to consider the 2026 Preliminary Operating, Special (Dedicated) funds, and Capital Budget for Final Budget Balancing.
Report
Issue:
Whether to approve a recommendation to the City Council to consider the 2026 Preliminary Operating, Special (Dedicated) Funds, and Capital Budget for Final Budget Balancing.
Staff Contact:
Mike Githens, Finance Director, 360.753.8465
Presenter(s):
Jay Burney, City Manager
Mike 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 City 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.
A Study Session was held on October 14, 2025 with discussion around 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 ReSourc...
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