2027 Budget Update
At a glance
Based on auto-generated captions; names and numbers may be misheard.
- What: staff update on balancing the 2027 operating budget, with a first look at priorities for possible enhancements.
- Where it stands: on 2026-10-20 staff said the earlier $3.8 million gap is closed, leaving about $1.9 million positive if a $1 million year-end draw for fire trucks is used. More benefit-cost work may reopen a gap.
- Next: public hearings on the operating budget and capital plan on October 27; final balancing position on November 10; final balancing decisions on November 24.
Where the numbers stand
- Estimated 2026 year-end fund balance is about $3.5 million above the 10 percent reserve minimum (target had been $2.5 million).
- Closing the gap: about $1 million lower county court costs, $1.5 million from a $2 million salary reserve (the rest for legacy workers' compensation claims), $1.7 million more sales tax and business tax revenue, a $400,000 parks reduction, $100,000 new construction property tax, and about $75,000 of medical benefit savings.
- Earlier steps: budgeting for salary savings, a duplicate position removed, delayed vehicle replacements, lower liability insurance, one fire truck payment moved to 2028.
- Warning: sales tax will not keep growing this fast in 2028 and 2029, so tougher years are ahead.
- Items still pending: labor and industries rates, property insurance, final benefit calculations.
Priorities for enhancements
- First tier (partly paid by other revenue, about $130,000 to $160,000 total): a grant-matched position, a water-utility-funded engineer who also helps transportation, and an events planning position partly offset by a lodging-tax advisory fund.
- Second tier (about $788,000, in priority order): a signs and signals supervisor (possibly paid from real estate excise tax for 2027 only), a prosecuting attorney, a planning study (Plum Street corridor study or downtown strategy), a human resources position, and climate program funding of $100,000 to $500,000.
- Baseline additions: police academy and training costs, $300,000 for quarterly cleanups and response at the jungle, long-line road striping.
- Council members questioned using one-time money for permanent positions and wanted a path beyond 2027; a future study session on liability insurance was suggested.
Sources
- 2026-10-06 - City Council
- Finance Committee minutes, September 21, 2026: https://legistar.granicus.com/olympia/meetings/2026/9/7167_M_Finance_Committee_26-09-21_Meeting_Minutes.pdf
- City Council agenda, October 20, 2026: https://legistar.granicus.com/olympia/meetings/2026/10/7133_A_City_Council_26-10-20_Meeting_Agenda.pdf
Discussion time
About 51 minutes across 1 meeting (from transcript timestamps; approximate).
| Meeting | Minutes |
|---|---|
| 2026-10-20 - City Council | 51 |
Log
2026-09-21 - Finance Committee
Finance Director Mike Githens and City Manager Jay Burney presented 2027 budget balancing position, departmental enhancement requests, and remaining budget considerations. Climate enhancement options discussed; possibility of sweeping interest into general fund and making some enhancements dependent on sales tax performance reviewed.
2026-10-20 - City Council
Update to council (a repeat of the previous evening's finance committee briefing): gap closed, year-end balance about $3.5 million over reserve, enhancement priorities reviewed. Final balancing position returns November 10.
- 2026-10-22 - Page created from a posted agenda (split from a combined page); updated with Finance Committee minutes 2026-10-24.
- 2026-10-06 - City Council - Council reviewed special revenue programs and proposed 2027 rates and fees; ordinances expected December 8.
- 2026-11-10 - City Council - Second reading of the Q3 budget amendment ordinance (amending Ord. 7475, total increase $14,309,714, item 26-0827); 2027 budget update (26-0885); Lodging Tax Advisory Committee 2027 recommendations update (26-0855). Final balancing position was due this meeting. See also 2027 Property Tax and Excess Levy.