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10282025 Agenda Work Session
October 28, 2025 Port Angeles City Council Meeting Page 1 OCTOBER 28, 2025 Special Meeting City of Port Angeles Council Special Meeting Agenda This meeting will be conducted as a hybrid meeting. In hybrid meetings, members of the public, Council members, and City sta ff have the option to attend the meeting in person, in Council chambers at City Hall located at 321 East 5 th Street, Port Angeles, or remotely via telephone or video link. The Mayor may determine the order of business for a particular City Council meeting. The agenda should be arranged to best serve the needs and/or convenience of the Council and the public. The Mayor will determine time of break. Hearing devices are available for those needing assistance. The items of business for regular Council meetings may include the following: For audio only please call: 1-844-992-4726 Webinar number: 2551 719 0473 Webinar password: vxUhpRCk949 (89847725 when dialing from a phone or video system) Webex link: https://cityofpa.webex.com/cityofpa/j.php?MTID=mc644198f1c75d135ead0ce088f1087a6 These access codes are good for the October 28, 2025 meeting only. I. Call to Order – Special Meeting at 5:00 p.m. II. Budget Work Session • 2026 Budget Presentation by City Manager Nathan West and Finance Director Sarina Carrizosa • City Council Discussion • The Preliminary Budget can be found on the City’s website at: cityofpa.us/DocumentCenter/View/17612/2026- Preliminary-Budget-PDF III. Adjournment – 7:00 p.m. The City Council encourages citizen participation. An opportunity for public comment will be available during regular meeting s. Upcoming meeting information can be found on the City website: www.cityofpa.us/583/Meetings-Agendas. Community members may also contact City Council by email at council@cityofpa.us, or written letter mailed to 321 East 5th Street, Port Angeles, WA 98362 or by dropping it by City Hall. Learn more by visiting: www.cityofpa.us/137/City-Council Port Angeles City Hall is accessible for persons with disabilities. Requests for special accommodations can be made by contac ting the City Clerk’s Office. Closed captioning can also be made available. Please contact City Clerk Kari Martinez -Bailey by phone at 360- 417-4634, or by email at cityclerk@cityofpa.us, to request accommodations or receive instructions for closed captioning. 2026 PROPOSED BUDGETWork Session October 28, 2025 MEETING OBJECTIVES Balancing the Budget Budget Process 2026 Preliminary Operating Budget 2026 Budget Schedule Council Discussion Work Session | October 28, 2025 | Slide 22026 Preliminary Budget BALANCING THE 2026 BUDGET The 2026 Budget was balanced through the collective and innovative efforts of City Council, City Staff and the Port Angeles Community. A conservative, realistic and conscientious approach was observed to ensure sustainability and fiscal stewardship. Work Session | October 28, 2025 | Slide 32026 Preliminary Budget BALANCING THE 2026 BUDGET This portion of the Budget process is Council’s opportunity to engage with discussion and questions regarding the proposed budget. It is the best opportunity to discuss potential changes as a group to determine if they should be considered as an action item during the adoption of the budget. If the changes recommended by Council include increasing funding for a specific program or the addition of services, suggestions for corresponding budget reductions or revenue collections should also be considered. Work Session | October 28, 2025 | Slide 42026 Preliminary Budget BALANCING THE 2026 BUDGET The 2026 Citywide Budget is balanced without reducing the core services expected by City residents. Use of reserves in any fund are the result of one-time projects and items. Citywide Total Budget $188,896,600. More than $53.0 million in capital funding. A 15.1% increase compared to 2025. Work Session | October 28, 2025 | Slide 52026 Preliminary Budget BALANCING THE 2026 GENERAL FUND BUDGET Work Session | October 28, 2025 | Slide 62026 Preliminary Budget REVENUE $27,391,900 The use of reserves held for specific purposes in the amount of $424,200, is planned for Economic Development needs, Code Enforcement and the K9 program. EXPENDITURES $27,391,900 The 2025 General Fund Balance will be 23.2%. Financial Policies direct that the fund balance will be rebuilt to 25.0% within 60 months. BUDGET GOALS Work Session | October 28, 2025 | Slide 72026 Preliminary Budget City staff has taken the direction of Council during the 2026 Budget Goals work session and prioritized funding in the Budget for maintaining: Operational Services Preserving funding and staffing levels in public safety Exploring options for future preservation and growth in the budget through new revenue sources BUDGET CHALLENGES Work Session | October 28, 2025 | Slide 82026 Preliminary Budget The City noticed a tightening of the local economy that demonstrated a slowing trend in contrast to multiple years of strong revenue growth. Unlike recent years revenue trends dictated no capacity to grow staff resources or City programs. Additionally, substantial impacts from the threat of loss and actual loss of multiple federal grants. BUDGET CHALLENGES Work Session | October 28, 2025 | Slide 92026 Preliminary Budget Meanwhile our operating budgets remain highly constrained and at levels similar to or less than expected expenditures from around 20 years ago. Multiple Departmental budgets are bursting at the seams due to the increase in cost of equipment and contract services BUDGET REVIEW AND DILIGENCE As part of our review we have gone line by line through the budgets of over 40 different divisions with the goal of saving our ratepayers and community members money. Includes almost 4,000 individual accounts with specific details in each. Work Session | October 28, 2025 | Slide 102026 Preliminary Budget BUDGET REVIEW AND DILIGENCE The City has made giant strides in eliminating our debt including the elimination of General Fund and Electric Utility Debt. Recognizing that ongoing debt service directly impacts our ability to apply resources and services the community needs. Work Session | October 28, 2025 | Slide 112026 Preliminary Budget COUNCIL INITIATIVES MAKING A DIFFERENCE Work Session | October 28, 2025 | Slide 122026 Preliminary Budget It is important to credit City Council for making numerous bold decisions in the introduction of new and enhanced revenues. These measures have set us apart from jurisdictions throughout Washington that have had to make very difficult decisions regarding staffing and level of service. Updating Fee schedules for the first time in a decade Short Term Lodging Revenue Business License Revenue Commitment to grant positions that bring in outside funding reducing the obligations to our local community EXPLORATION OF NEW AND INNOVATIVE SOLUTIONS Work Session | October 28, 2025 | Slide 132026 Preliminary Budget Regional Fire Authority Request for Proposals Purchase of compactor/bailer in Solid Waste Relentless pursuit of grants Creative and meaningful use of Opioid Settlement funding. THE BUDGET PROCESS Work Session | October 28, 2025 | Slide 142026 Preliminary Budget Capital Facilities Plan & Transportation Improvement Plan prepared and Adopted. Council budgetary direction is received through Strategic Planning, Long-range planning, policy updates, budget work sessions and/or retreats. Departments enter revenue and expenditure budgets. Personnel worksheets reviewed by Department Directors. Council Budget Goals Work Session Departmental Requests delivered to City Manager for review. City Manager meets with Dept. Directors to review requests. Preliminary Budget is updated based on meetings and City Manager input. Recommended Preliminary Budget complete and posted. Workshops and Public Hearings are held on the Preliminary Budget, Revenue Sources and Property Tax. Final Budget is adopted December 2nd. JANUARY - JUNE JUNE - JULY AUGUST - SEPTEMBER OCTOBER - DECEMBER ALL CITY FUNDS Work Session | October 28, 2025 | Slide 152026 Preliminary Budget ALL CITY REVENUES Work Session | October 28, 2025 | Slide 162026 Preliminary Budget $$% Taxes $18,844,104 $20,166,622 $20,858,846 $20,281,100 $21,413,200 1,132,100 5.58% Licenses & Permits 651,530 585,057 1,353,762 1,332,900 1,553,800 220,900 16.57% Intergovt. Revenue 7,456,902 12,591,033 16,579,394 17,925,800 28,410,500 10,484,700 58.49% Charges for Goods & Svcs.73,355,711 75,610,703 79,965,290 80,538,000 85,881,400 5,343,400 6.63% Fines & Penalties 596 1,435 1,336 1,500 1,500 - 0.00% Miscellaneous Revenue (38,793)13,228,382 14,786,970 12,528,700 12,876,400 347,700 2.78% Capital Contributions 111,806 248,169 1,320,864 231,300 150,000 (81,300)-35.15% Non-Revenues 2,000,000 400,000 1,500,000 791,600 791,600 - 0.00% Other Financing Sources 7,278,582 11,521,747 17,950,954 7,645,100 11,528,200 3,883,100 50.79% Reserves Used - - - 22,801,100 26,290,000 3,488,900 15.30% TOTAL REVENUE $109,660,438 $134,353,148 $154,317,416 $164,077,100 $188,896,600 24,819,500 15.13% Change from Prior Yr. $$($7,881,090)$24,692,710 $19,964,268 $9,759,684 Change from Prior Year %-6.70%22.52%14.86%6.32% 2026 PROPOSED BUDGET VARIANCE FROM 2025 BUDGET AMEND. #2 REVENUE 2025 BUDGET AMEND. #2 2022 ACTUAL 2023 ACTUAL 2024 ACTUAL ALL CITY REVENUES Work Session | October 28, 2025 | Slide 172026 Preliminary Budget 24.55%24.73%26.12%1.24%2.28%8.32%2.68%5.35%3.10%1.63%Other UtilityPhoneTBDHousingLodgingREET I &II Criminal Just TAXESPropertySales 28.12%10.03%13.10%23.29%3.77%4.25%0.27%12.68%0.40%2.34%0.62%1.13%Other Internal ChargesParks & RecreationEquipment Replacements ElectricWaterWastewaterSolid WasteStormwater CHARGES Conservation Medic OneLicenses & Permits Taxes 11.34% Licenses & Permits 0.82% Intergovt. Revenue 15.04% Charges for Goods & Svcs. 45.46% Fines & Penalties 0.00%Miscellaneous Revenue 6.82%Capital Contributions 0.08%Non- Revenues 0.42% Other Financing Sources 6.10% Reserves Used 13.92% CITYWIDE REVENUES BY CATEGORY (TOTAL $188,896,600) 16.63%1.65%Judgements/Settlements 6.63%70.06%5.03% Interest EarnedRentals/Leases OtherInsurance Transfers MISCELLANEOUS ALL CITY EXPENDITURES Work Session | October 28, 2025 | Slide 182026 Preliminary Budget $$% Salaries and Wages $24,359,884 $32,033,353 $29,647,967 $30,120,400 $31,783,400 1,663,000 5.52% Personnel Benefits 8,079,087 9,487,617 10,008,048 11,288,200 11,258,700 (29,500)-0.26% Supplies 18,669,858 16,468,877 16,717,255 15,399,900 17,154,100 1,754,200 11.39% Other Services & Charges 42,174,735 44,125,258 49,493,054 54,036,400 56,315,400 2,279,000 4.22% Intergovmt/Interfund Svcs 8,528,681 13,433,101 19,299,037 9,021,000 13,327,600 4,306,600 47.74% Capital Outlay 8,890,649 15,213,147 22,040,796 38,206,500 53,046,700 14,840,200 38.84% Debt Service: Principal 6,669,747 4,579,074 3,455,166 3,028,600 2,746,700 (281,900)-9.31% Debt Service: Interest 1,635,105 1,497,911 1,645,886 1,320,600 1,144,200 (176,400)-13.36% Interfund Pmts. for Services 348,395 407,894 410,788 357,300 321,200 (36,100)-10.10% Designated for Reserves - - - 1,298,200 1,798,600 500,400 38.55% TOTAL EXPENDITURES $119,356,141 $137,246,232 $152,717,997 $164,077,100 $188,896,600 24,819,500 15.13% Change from Prior Yr. $$$5,283,203 $17,890,091 $15,471,765 $11,359,103 Change from Prior Year %4.63%14.99%11.27%7.44% 2026 PROPOSED BUDGET VARIANCE FROM 2025 BUDGET AMEND. #2 EXPENDITURES 2025 BUDGET AMEND. #2 2022 ACTUAL 2023 ACTUAL 2024 ACTUAL ALL CITY EXPENDITURES Work Session | October 28, 2025 | Slide 192026 Preliminary Budget Capital 74.67%Street/Medic 1/Code Enforcement Transfers 13.37%Contract for Jail Services 8.69%Other 3.27% INTERFUND SERVICES Professional Services 12.69%Medical & Benefit Premiums 10.64%Taxes 12.94%Allocations 11.58%Repairs & Maintenance 4.36%Equipment Services 6.18%IT Allocations 4.61%Other 21.65%Liability Insurance 8.54%Utilities 3.08%Communication 1.08%Travel & Training 0.93%Conservation Incentives 0.65%PenCom User Fees 1.07% OTHER SERVICES AND CHARGES Salaries and Wages 16.80% Personnel Benefits 5.86% Supplies 11.70% Other Services & Charges 27.97% Intergovmt/ Interfund Svcs 9.82% Capital Outlay 23.79% Debt Service: Principal 1.77% Debt Service: Interest 0.68%Interfund Pmts. for Services 0.11% Designated for Reserves 1.50% CITYWIDE EXPENDITURES BY CATEGORY (TOTAL $188,896,600) ALL CITY FUND BALANCES Work Session | October 28, 2025 | Slide 202026 Preliminary Budget 0.0% 20.0% 40.0% 60.0% % of 2026 Expenditures Fund Balance Target % GENERAL FUND The main operating fund of the City Work Session | October 28, 2025 | Slide 212026 Preliminary Budget GENERAL FUND REVENUE Work Session | October 28, 2025 | Slide 222026 Preliminary Budget $$% Taxes 15,023,317$ 16,274,551$ 16,378,943$ 16,365,900$ 17,190,100$ 824,200 5.04% Licenses & Permits 509,223 474,339 1,185,423 1,119,700 1,373,100 253,400 22.63% Intergovt. Revenue 2,155,272 2,527,702 3,160,834 1,632,400 782,400 (850,000) -52.07% Charges for Goods & Svcs.4,927,960 5,737,412 6,289,527 7,188,300 7,461,500 273,200 3.80% Fines & Penalties 596 1,435 1,336 1,500 1,500 - 0.00% Miscellaneous Revenue (578,670) 696,753 1,033,963 737,300 367,400 (369,900) -50.17% Prop./Trust Income - - - - - - N/A Non-Revenues - - - - - - N/A Other Financing Sources 121,889 88,000 167,502 204,900 215,900 11,000 5.37% TOTAL REVENUE 22,159,587$ 25,800,192$ 28,217,528$ 27,250,000$ 27,391,900$ 141,900 0.52% Change from Prior Yr. $$(388,643)$ 3,640,605$ 2,417,336$ (967,528)$ Change from Prior Year %-1.72%16.43%9.37%-3.43% 2023 ACTUAL REVENUE 2025 BUDGET AMEND. #2 2026 PROPOSED BUDGET VARIANCE FROM 2025 BUDGET AMEND. #22022 ACTUAL 2024 ACTUAL GENERAL FUND REVENUE Work Session | October 28, 2025 | Slide 232026 Preliminary Budget Taxes, 62.76% Licenses & Permits, 5.01% Intergovt. Revenue, 2.86% Charges for Goods & Svcs., 27.24% Fines & Penalties, 0.01% Miscellaneous Revenue, 1.34% Other Financing Sources, 0.79% Property Tax 30.58% Utility Tax 32.69% Sales Tax 30.81% Other Tax 5.92% TAXES Allocations 87.39% Activity & Rental Fees 1.29% Planning Fees 4.53% Cemetery Services 2.81% Other 3.97% CHARGES FOR SERVICES GENERAL FUND EXPENDITURES Work Session | October 28, 2025 | Slide 242026 Preliminary Budget $$% Salaries and Wages 10,123,753$ 10,970,041$ 12,494,993$ 13,470,400$ 13,853,900$ 383,500 2.85% Personnel Benefits 3,800,904 4,078,872 4,437,245 4,800,300 4,824,100 23,800 0.50% Supplies 878,667 914,943 1,013,434 920,200 896,700 (23,500) -2.55% Other Services & Charges 5,284,183 5,815,320 5,845,032 5,255,100 5,280,300 25,200 0.48% Intergovmt/Interfund Svcs 2,996,612 3,624,807 4,934,670 2,865,200 2,961,100 95,900 3.35% Capital Outlay - - - - - - N/A Debt Service: Principal - 5,909 - - - - N/A Debt Service: Interest 3 93 - - - - N/A Interfund Pmts. for Services 12,991 13,033 - - - - N/A TOTAL EXPENDITURES 23,097,113$ 25,423,018$ 28,725,374$ 27,311,200$ $27,816,100 504,900 1.85% Change from Prior Yr. $$94,934$ 2,325,905$ 3,302,356$ (1,414,174)$ Change from Prior Year %0.41%10.07%12.99%-4.92% 2023 ACTUAL EXPENDITURES 2025 BUDGET AMEND. #2 2026 PROPOSED BUDGET VARIANCE FROM 2025 BUDGET AMEND. #22022 ACTUAL 2024 ACTUAL GENERAL FUND EXPENDITURES Work Session | October 28, 2025 | Slide 252026 Preliminary Budget Salaries and Wages 49.81%Personnel Benefits 17.34% Supplies 3.22%Other Services & Charges 18.98% Intergovmt/ Interfund Svcs 10.65% Professional Services 14.87% Equipment Services 21.25% IT Services 12.00% Utilities 10.33% PenCom User Fees 7.12% Communication 6.15% Travel & Training 4.77% Insurance 9.96% Repairs & Maintenance 4.63% Façade Improvements 0.95% Other Services & Charges 7.97% SERVICES & CHARGES Transfers - Street Fund 27.59% Contract for Jail Services 39.09% Transfers - Medic 1 Fund 8.97% Transfers - Capital 13.10% Transfers - Debt Service 0.00% Transfers - Code Enforcement 11.25% INTERGOVERNMENTAL CITY COUNCIL Work Session | October 28, 2025 | Slide 262026 Preliminary Budget Major Revenue Source: Allocations Change in Expenditures from 2025: In 2026, four remaining council positions include the new City Council monthly compensation rate approved in 2023. $2 0 , 2 0 7 $6 0 , 0 4 6 $3 9 , 1 2 9 $6 7 , 6 8 5 $1 1 0 , 6 0 2 $1 6 1 , 6 3 9 $8 0 , 9 0 0 $9 8 , 5 0 0 $7 3 , 3 0 0 $1 2 7 , 9 0 0 $- $50,000 $100,000 $150,000 Revenues Expenditures CITY COUNCIL 2026 PRELIMINARY BUDGET 2022 Actual 2023 Actual 2024 Actual 2025 Amended Budget 2026 Proposed budget CITY COUNCIL Work Session | October 28, 2025 | Slide 272026 Preliminary Budget Supplies, $3,400 Supplies, $2,700 Travel & Training, $10,000 Travel & Training, $10,000 Professional Services, $4,600 Professional Services, $4,600 $- $5,000 $10,000 $15,000 $20,000 2025 2026 Supplies Travel & Training Professional Services CITY MANAGER’S OFFICE Work Session | October 28, 2025 | Slide 282026 Preliminary Budget Major Revenue Source: Allocations Change in Expenditures from 2025: A decrease for one-time costs for the City code update is expected as well as an increase in personnel costs resulting from increasing the part-time HR Specialist to a full-time position in 2026. $4 5 7 , 0 0 1 $9 8 0 , 4 3 6 $5 9 9 , 7 6 2 $1 , 1 9 9 , 3 4 0 $6 0 3 , 9 0 1 $1 , 3 8 3 , 1 0 8 $7 0 9 , 0 0 0 $1 , 5 0 7 , 0 0 0 $6 8 3 , 1 0 0 $1 , 4 4 8 , 9 0 0 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 Revenues Expenditures CITY MANAGER'S OFFICE 2026 PRELIMINARY BUDGET 2022 Actual 2023 Actual 2024 Actual 2025 Amended Budget 2026 Proposed budget CITY MANAGER’S OFFICE Work Session | October 28, 2025 | Slide 292026 Preliminary Budget FINANCE DEPARTMENT Work Session | October 28, 2025 | Slide 302026 Preliminary Budget Major Revenue Source: Tax Revenue Change in Expenditures from 2025: Increased costs are expected for charges from the IT department for all General Fund Services, the City’s yearly audit and merchant fees. $1 6 , 5 4 4 , 6 4 2 $3 , 1 5 4 , 2 9 2 $1 9 , 2 0 4 , 0 2 8 $3 , 4 2 3 , 5 6 9 $1 9 , 9 4 4 , 4 2 2 $3 , 7 7 7 , 5 1 3 $1 9 , 2 5 1 , 1 0 0 $3 , 9 1 4 , 0 0 0 $2 0 , 3 5 8 , 7 0 0 $4 , 0 3 1 , 8 0 0 $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 Revenues Expenditures FINANCE DEPARTMENT 2026 PRELIMINARY BUDGET 2022 Actual 2023 Actual 2024 Actual 2025 Amended Budget 2026 Proposed budget FINANCE DEPARTMENT Work Session | October 28, 2025 | Slide 312026 Preliminary Budget LEGAL DEPARTMENT Work Session | October 28, 2025 | Slide 322026 Preliminary Budget Major Revenue Source: Allocations Change in Expenditures from 2025: 2.7% increase to prosecution fees to the County based on the CPI index. $ 1 7 3 , 3 7 8 $ 1 , 5 4 0 , 5 1 3 $ 2 2 7 , 0 4 5 $ 1 , 6 0 6 , 9 2 1 $ 2 1 1 , 3 1 7 $ 1 , 7 0 8 , 0 8 9 $ 1 9 9 , 7 0 0 $ 1 , 7 9 2 , 7 0 0 $ 1 8 2 , 6 0 0 $ 1 , 8 5 2 , 7 0 0 $- $500,000 $1,000,000 $1,500,000 $2,000,000 Revenues Expenditures LEGAL DEPARTMENT 2026 PRELIMINARY BUDGET 2022 Actual 2023 Actual 2024 Actual 2025 Amended Budget 2026 Proposed budget LEGAL DEPARTMENT Work Session | October 28, 2025 | Slide 332026 Preliminary Budget COMMUNITY DEVELOPMENT DEPARTMENT Work Session | October 28, 2025 | Slide 342026 Preliminary Budget Major Revenue Source: Permits and Fees Change in Expenditures from 2025: A reduction in expenses for the Comprehensive Plan. Additionally, funds for the façade program have been included, this funding occurs biennially. $6 6 1 , 1 1 2 $8 3 9 , 8 8 7 $8 8 2 , 7 2 3 $1 , 1 5 8 , 5 4 2 $1 , 7 1 1 , 5 6 8 $1 , 6 1 0 , 1 1 5 $1 , 7 2 5 , 8 0 0 $1 , 7 4 2 , 0 0 0 $1 , 7 6 9 , 5 0 0 $1 , 6 5 6 , 8 0 0 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 $2,000,000 Revenues Expenditures COMMUNITY & ECONOMIC DEVELOPMENT 2026 PRELIMINARY BUDGET 2022 Actual 2023 Actual 2024 Actual 2025 Amended Budget 2026 Proposed budget COMMUNITY DEVELOPMENT DEPARTMENT Work Session | October 28, 2025 | Slide 352026 Preliminary Budget POLICE DEPARTMENT Work Session | October 28, 2025 | Slide 362026 Preliminary Budget Major Revenue Source: Grants, tax revenue, state shared revenues Change in Expenditures from 2025: Increases planned for the transfer to Code Enforcement due to increased personnel costs in this fund as well as increases for equipment replacements. $1 , 0 0 4 , 1 1 4 $6 , 9 2 1 , 3 1 5 $1 , 4 9 8 , 5 4 4 $7 , 6 3 4 , 1 0 5 $1 , 1 2 7 , 0 8 1 $7 , 8 9 8 , 1 5 8 $1 , 4 7 0 , 8 0 0 $7 , 8 4 4 , 0 0 0 $7 5 8 , 0 0 0 $8 , 2 6 4 , 2 0 0 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 Revenues Expenditures POLICE DEPARTMENT 2026 PRELIMINARY BUDGET 2022 Actual 2023 Actual 2024 Actual 2025 Amended Budget 2026 Proposed budget POLICE DEPARTMENT Work Session | October 28, 2025 | Slide 372026 Preliminary Budget FIRE DEPARTMENT Work Session | October 28, 2025 | Slide 382026 Preliminary Budget Major Revenue Source: Allocations and Permit revenue Change in Expenditures from 2025: Increased charges for the use of the County’s radio network and capital projects. Reduced personnel costs due to reducing the allocation from General Fund to Medic 1 division. $9 9 , 1 9 1 $2 , 3 6 4 , 7 5 3 $8 5 , 6 5 0 $2 , 4 7 2 , 4 2 2 $1 7 5 , 7 6 0 $2 , 8 4 9 , 9 4 7 $3 0 9 , 1 0 0 $2 , 9 0 3 , 0 0 0 $3 1 5 , 4 0 0 $2 , 9 8 6 , 6 0 0 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 Revenues Expenditures FIRE DEPARTMENT 2026 PRELIMINARY BUDGET 2022 Actual 2023 Actual 2024 Actual 2025 Amended Budget 2026 Proposed budget FIRE DEPARTMENT Work Session | October 28, 2025 | Slide 392026 Preliminary Budget PUBLIC WORKS & UTILITIES DEPARTMENT Work Session | October 28, 2025 | Slide 402026 Preliminary Budget Major Revenue Source: Allocations and Permit revenue Change in Expenditures from 2025: Reduction in salaries and personnel benefits due to grant funding positions that are not expected in 2026. Increases for centralizing operational spending for the City’s Engineers. $1 , 2 6 9 , 3 5 6 $2 , 1 7 9 , 9 4 1 $1 , 3 4 7 , 0 6 1 $2 , 8 5 4 , 3 3 2 $1 , 4 7 4 , 6 3 2 $2 , 7 7 5 , 4 6 4 $2 , 5 0 6 , 4 0 0 $3 , 0 5 7 , 6 0 0 $2 , 3 0 0 , 3 0 0 $2 , 7 9 9 , 6 0 0 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 Revenues Expenditures PUBLIC WORKS & UTILITIES DEPARTMENT 2026 PRELIMINARY BUDGET 2022 Actual 2023 Actual 2024 Actual 2025 Amended Budget 2026 Proposed budget PUBLIC WORKS & UTILITIES DEPARTMENT Work Session | October 28, 2025 | Slide 412026 Preliminary Budget PARKS & RECREATION DEPARTMENT Work Session | October 28, 2025 | Slide 422026 Preliminary Budget Major Revenue Source: Rental revenue and allocations Change in Expenditures from 2025: Increases for vehicle replacements. $ 7 3 1 , 0 5 9 $ 3 , 6 1 6 , 8 1 5 $ 7 6 7 , 4 8 7 $ 3 , 8 9 5 , 1 4 7 $ 7 8 6 , 1 2 8 $ 3 , 7 1 1 , 9 3 5 $ 9 9 7 , 2 0 0 $ 3 , 8 5 4 , 9 0 0 $ 9 5 1 , 0 0 0 $ 4 , 0 2 5 , 5 0 0 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 Revenues Expenditures PARKS & RECREATION DEPARTMENT 2026 PRELIMINARY BUDGET 2022 Actual 2023 Actual 2024 Actual 2025 Amended Budget 2026 Proposed budget PARKS & RECREATION DEPARTMENT Work Session | October 28, 2025 | Slide 432026 Preliminary Budget NON-DEPARTMENTAL Work Session | October 28, 2025 | Slide 442026 Preliminary Budget Change in Expenditures from 2025: Reduction in spending for 2026 with the maturity of the City’s LTGO bonds that were in support of utility improvements in the western urban growth area. $1 , 1 9 9 , 5 2 7 $1 , 4 3 9 , 1 1 5 $1 , 1 4 8 , 7 6 3 $1 , 1 1 0 , 9 5 5 $2 , 0 7 2 , 1 1 7 $2 , 8 4 9 , 4 0 7 $- $5 9 7 , 5 0 0 $- $6 2 2 , 1 0 0 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 Revenues Expenditures NON -DEPARTMENTAL 2026 PRELIMINARY BUDGET 2022 Actual 2023 Actual 2024 Actual 2025 Amended Budget 2026 Proposed budget SPECIAL REVENUE FUNDS Account for and report the proceeds of resources that are committed for specific purposes other than debt service or capital. Work Session | October 28, 2025 | Slide 452026 Preliminary Budget LODGING TAX Work Session | October 28, 2025 | Slide 462026 Preliminary Budget Major Revenue Source: Tax revenue Change in Expenditures from 2025: 20% - capital expenditures; 5% - remaining in reserves for capital items. Remaining funds utilized in accordance with the RCW. Excess reserves placed in budget for use by LTAC. $1 , 0 8 4 , 7 1 9 $1 , 3 9 4 , 2 4 9 $1 , 4 3 6 , 3 8 2 $1 , 0 6 0 , 5 0 0 $1 , 1 7 2 , 8 0 0 $6 0 1 , 4 0 8 $6 9 6 , 1 8 3 $1 , 8 5 8 , 5 5 0 $1 , 4 3 8 , 0 0 0 $1 , 7 6 0 , 9 0 0 $- $400,000 $800,000 $1,200,000 $1,600,000 $2,000,000 2022 Actual 2023 Actual 2024 Actual 2025 Amended Budget 2026 Proposed budget LODGING TAX 2026 PRELIMINARY BUDGET Revenues Expenditures Fund Balance STREET DEPARTMENT Work Session | October 28, 2025 | Slide 472026 Preliminary Budget Major Revenue Source: Taxes, transfers and State shared revenue Change in Expenditures from 2025: Increased costs for equipment replacements and increases to update outdated sign manufacturing. $1 , 6 2 5 , 2 4 9 $1 , 8 6 7 , 3 8 3 $2 , 2 1 0 , 7 8 1 $2 , 1 4 5 , 3 0 0 $2 , 1 0 6 , 6 0 0 $1 , 7 3 6 , 2 1 3 $1 , 8 9 5 , 1 6 0 $1 , 9 7 6 , 6 8 3 $2 , 2 0 6 , 6 0 0 $2 , 2 5 3 , 4 0 0 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 2022 Actual 2023 Actual 2024 Actual 2025 Amended Budget 2026 Proposed budget STREET FUND 2026 PRELIMINARY BUDGET Revenues Expenditures Fund Balance STREET DEPARTMENT Work Session | October 28, 2025 | Slide 482026 Preliminary Budget REET I Work Session | October 28, 2025 | Slide 492026 Preliminary Budget Major Revenue Source: Tax revenue Change in Expenditures from 2025: Capital spending for the Restroom Replacement Program, Ennis Creek Fish Barrier, and Valley Street Culvert. $3 8 9 , 0 2 5 $4 1 4 , 9 4 5 $4 0 9 , 5 6 1 $3 3 7 , 3 0 0 $3 4 0 , 0 0 0 $3 5 5 , 2 0 0 $9 0 0 , 6 0 0 $7 4 2 , 8 0 0 $5 8 0 , 0 0 0 $3 0 0 , 0 0 0 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 2022 Actual 2023 Actual 2024 Actual 2025 Amended Budget 2026 Proposed budget REAL ESTATE EXCISE TAX 1 -2026 PRELIMINARY BUDGET Revenues Expenditures Fund Balance REET II Work Session | October 28, 2025 | Slide 502026 Preliminary Budget Major Revenue Source: Tax revenue Change in Expenditures from 2025: Capital spending for Stevens Middle School Walking routes, Waterfront Trail Repairs, 1st/2nd/Valley/Oak Green Alley, Streetlight program, and Joint Public Safety Facility. $4 0 1 , 7 9 6 $3 9 7 , 0 7 6 $3 9 3 , 0 6 2 $3 2 9 , 5 0 0 $3 4 1 , 0 0 0 $5 1 2 , 0 0 0 $1 , 0 7 6 , 3 0 0 $1 8 0 , 0 0 0 $1 2 3 , 8 0 0 $8 2 9 , 3 0 0 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 2022 Actual 2023 Actual 2024 Actual 2025 Amended Budget 2026 Proposed budget REAL ESTATE EXCISE TAX II -2026 PRELIMINARY BUDGET Revenues Expenditures Fund Balance PENCOM Work Session | October 28, 2025 | Slide 512026 Preliminary Budget Major Revenue Source: Taxes and User fees Change in Expenditures from 2025: Increased equipment and software costs. $ 3 , 7 4 4 , 1 6 6 $ 4 , 3 4 5 , 6 3 8 $ 4 , 0 7 6 , 2 5 7 $ 4 , 0 0 5 , 1 0 0 $ 4 , 3 8 0 , 3 0 0 $ 3 , 7 8 4 , 4 9 7 $ 4 , 6 1 8 , 8 4 3 $ 4 , 2 9 4 , 1 8 6 $ 4 , 3 1 2 , 6 0 0 $ 4 , 5 4 7 , 1 0 0 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 2022 Actual 2023 Actual 2024 Actual 2025 Amended Budget 2026 Proposed budget PENCOM 2026 PRELIMINARY BUDGET Revenues Expenditures Fund Balance PENCOM Work Session | October 28, 2025 | Slide 522026 Preliminary Budget BUSINESS IMPROVEMENT FUND Work Session | October 28, 2025 | Slide 532026 Preliminary Budget Major Revenue Source: Fees collected from downtown businesses for parking and improvements Change in Expenditures from 2025: Funding transfer to the Waterfront District. $3 2 , 6 1 5 $3 1 , 1 9 6 $3 2 , 3 0 3 $3 3 , 7 0 0 $4 3 , 6 0 0 $9 , 0 0 0 $1 7 , 5 7 3 $3 , 0 0 0 $1 2 1 , 4 0 0 $4 3 , 6 0 0 $- $40,000 $80,000 $120,000 2022 Actual 2023 Actual 2024 Actual 2025 Amended Budget 2026 Proposed budget BUSINESS IMPROVEMENT AREA FUND -2026 PRELIMINARY BUDGET Revenues Expenditures Fund Balance HOUSING FUND Work Session | October 28, 2025 | Slide 542026 Preliminary Budget Major Revenue Source: Affordable Housing sales tax and grant revenue. Change in Expenditures from 2025: Increases for grants to support increased affordable housing, budgeted transfer for Housing Administrator position. $9 1 8 , 9 7 8 $1 , 0 9 2 , 0 3 0 $7 4 2 , 7 9 1 $6 3 8 , 4 0 0 $6 8 9 , 3 0 0 $2 0 0 , 0 0 0 $5 4 5 , 6 0 8 $2 8 5 , 6 0 6 $3 5 5 , 7 0 0 $1 , 0 0 1 , 1 0 0 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 2022 Actual 2023 Actual 2024 Actual 2025 Amended Budget 2026 Proposed budget PA HOUSING REHABILITATION FUND -2026 PRELIMINARY BUDGET Revenues Expenditures Fund Balance CODE COMPLIANCE Work Session | October 28, 2025 | Slide 552026 Preliminary Budget Major Revenue Source: Transfer from the General Fund. Change in Expenditures from 2025: Includes two full-time Code Enforcement Officers as well as program expenses. $1 4 5 , 4 6 7 $2 0 6 , 5 7 5 $2 0 1 , 5 6 4 $2 5 7 , 1 0 0 $3 3 4 , 7 0 0 $1 2 8 , 6 0 3 $2 0 6 , 4 4 5 $1 9 9 , 5 4 2 $2 5 7 , 1 0 0 $3 3 4 , 7 0 0 $- $100,000 $200,000 $300,000 2022 Actual 2023 Actual 2024 Actual 2025 Amended Budget 2026 Proposed budget CODE COMPLIANCE FUND -2026 PRELIMINARY BUDGET Revenues Expenditures Fund Balance ENTERPRISE FUNDS Account for activities for which a fee is charged to external users for goods or services. These fees cover the full cost to provide these services. Work Session | October 28, 2025 | Slide 562026 Preliminary Budget ELECTRIC Work Session | October 28, 2025 | Slide 572026 Preliminary Budget Change in Expenditures from 2025: Increases reflect a 4.78% increase from BPA starting in 2026, as well as a $1.0M one-time transfer for the Light Ops Building and an increase to the capital transfer from operations. $2 6 , 5 7 5 , 9 6 7 $2 9 , 3 2 2 , 6 8 0 $2 7 , 9 9 7 , 0 8 1 $2 3 , 4 6 4 , 7 0 0 $2 5 , 4 8 0 , 9 0 0 $2 5 , 6 6 2 , 5 0 8 $2 3 , 8 4 6 , 6 5 6 $2 9 , 1 1 7 , 4 7 2 $2 3 , 9 0 7 , 2 0 0 $2 6 , 3 9 6 , 8 0 0 $- $10,000,000 $20,000,000 $30,000,000 2022 Actual 2023 Actual 2024 Actual 2025 Amended Budget 2026 Proposed budget ELECTRIC UTILITY 2026 PRELIMINARY BUDGET Revenues Expenditures Cash Balance ELECTRIC Work Session | October 28, 2025 | Slide 582026 Preliminary Budget ELECTRIC CONSERVATION Work Session | October 28, 2025 | Slide 592026 Preliminary Budget Change in Expenditures from 2025: Conservation incentives are based on a percentage of reduced power purchased for the electric utility. The 2026 incentives are based on projections from the BPA. $3 8 6 , 8 1 2 $2 9 5 , 3 8 6 $3 9 5 , 3 6 9 $5 3 9 , 3 0 0 $5 3 8 , 4 0 0 $5 0 3 , 3 2 9 $4 5 4 , 9 3 0 $5 6 3 , 5 6 1 $5 3 9 , 3 0 0 $5 6 7 , 3 0 0 $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 2022 Actual 2023 Actual 2024 Actual 2025 Amended Budget 2026 Proposed budget ELECTRIC CONSERVATION UTILITY 2026 PRELIMINARY BUDGET Revenues Expenditures Cash Balance ELECTRIC CONSERVATION Work Session | October 28, 2025 | Slide 602026 Preliminary Budget WATER Work Session | October 28, 2025 | Slide 612026 Preliminary Budget Change in Expenditures from 2025: Increased costs for supplies, repairs and maintenance, insurance premiums and administrative charges. There is also a planned use of $1.9M from the National Park Service settlement funds. $5 , 2 7 8 , 2 4 4 $8 , 6 8 1 , 4 4 0 $8 , 3 1 1 , 8 3 5 $9 , 7 2 0 , 9 0 0 $9 , 7 7 2 , 3 0 0 $8 , 5 2 2 , 8 3 1 $9 , 1 1 0 , 1 5 2 $1 2 , 7 1 0 , 1 3 9 $1 0 , 8 8 9 , 4 0 0 $1 2 , 1 3 5 , 9 0 0 $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 2022 Actual 2023 Actual 2024 Actual 2025 Amended Budget 2026 Proposed budget WATER UTILITY 2026 PRELIMINARY BUDGET Revenues Expenditures Cash Balance WATER Work Session | October 28, 2025 | Slide 622026 Preliminary Budget WASTEWATER Work Session | October 28, 2025 | Slide 632026 Preliminary Budget Change in Expenditures from 2025: Increases are expected for liability insurance, tax payments and administrative charges. Decreased expenses are expected from one-time expenditures for maintenance in 2025. $6 , 7 2 4 , 3 5 9 $8 , 1 2 4 , 5 8 8 $8 , 0 8 2 , 1 8 0 $9 , 0 3 1 , 3 0 0 $9 , 0 6 1 , 1 0 0 $6 , 9 9 5 , 5 8 3 $8 , 1 7 7 , 7 9 5 $9 , 1 4 5 , 1 4 7 $9 , 2 3 5 , 2 0 0 $9 , 6 7 5 , 2 0 0 $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 2022 Actual 2023 Actual 2024 Actual 2025 Amended Budget 2026 Proposed budget WASTEWATER UTILITY 2026 PRELIMINARY BUDGET Revenues Expenditures Cash Balance WASTEWATER Work Session | October 28, 2025 | Slide 642026 Preliminary Budget SOLID WASTE Work Session | October 28, 2025 | Slide 652026 Preliminary Budget Change in Expenditures from 2025: Increased costs for contracted waste transport services as well as additional tax payments that resulted from rate adjustments. $433,900 is planned in spending for post closure in 2026. $1 4 , 5 0 1 , 2 9 7 $1 3 , 0 4 8 , 5 9 6 $1 7 , 8 4 6 , 3 0 6 $1 6 , 2 0 0 , 7 0 0 $1 8 , 6 4 0 , 2 0 0 $1 9 , 5 5 6 , 4 0 7 $1 4 , 3 6 7 , 1 9 3 $1 6 , 7 2 7 , 2 4 5 $1 7 , 4 3 0 , 5 0 0 $1 8 , 7 5 3 , 9 0 0 $(3,000,000) $2,000,000 $7,000,000 $12,000,000 $17,000,000 2022 Actual 2023 Actual 2024 Actual 2025 Amended Budget 2026 Proposed budget SOLID WASTE UTILITY 2026 PRELIMINARY BUDGET Revenues Expenditures Cash Balance SOLID WASTE Work Session | October 28, 2025 | Slide 662026 Preliminary Budget STORMWATER Work Session | October 28, 2025 | Slide 672026 Preliminary Budget Change in Expenditures from 2025: Increased expenditures planned in 2026 attributed to charges for services from other departments and capital transfers for projects identified in the CFP. $2 , 5 0 4 , 1 2 3 $3 , 0 7 4 , 1 1 2 $3 , 5 9 7 , 4 7 9 $3 , 5 1 2 , 1 0 0 $3 , 4 7 1 , 5 0 0 $2 , 7 0 0 , 4 0 1 $3 , 0 9 1 , 1 1 7 $3 , 7 1 8 , 2 4 4 $3 , 6 7 3 , 2 0 0 $4 , 1 4 9 , 0 0 0 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 2022 Actual 2023 Actual 2024 Actual 2025 Amended Budget 2026 Proposed budget STORMWATER UTILITY 2026 PRELIMINARY BUDGET Revenues Expenditures Cash Balance STORMWATER Work Session | October 28, 2025 | Slide 682026 Preliminary Budget MEDIC 1 Work Session | October 28, 2025 | Slide 692026 Preliminary Budget Change in Expenditures from 2025: Increased costs for pharmaceutical needs as well as decreased expenditures resulting from pass through grant funding and grant funded equipment for the community paramedic program. $3 , 0 5 4 , 7 8 8 $3 , 9 0 6 , 7 4 9 $4 , 6 1 5 , 4 9 4 $4 , 6 1 8 , 3 0 0 $4 , 6 2 2 , 3 0 0 $3 , 1 5 5 , 3 4 6 $3 , 7 0 7 , 2 2 8 $4 , 2 0 6 , 3 2 3 $4 , 6 5 5 , 9 0 0 $4 , 7 0 2 , 3 0 0 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 2022 Actual 2023 Actual 2024 Actual 2025 Amended Budget 2026 Proposed budget MEDIC 1 2026 PRELIMINARY BUDGET Revenues Expenditures Fund Balance MEDIC 1 Work Session | October 28, 2025 | Slide 702026 Preliminary Budget FIRE & MEDIC 1 COMBINED Work Session | October 28, 2025 | Slide 712026 Preliminary Budget $3 , 1 5 3 , 9 7 9 $3 , 9 9 2 , 3 9 9 $4 , 7 9 1 , 2 5 4 $4 , 9 2 7 , 4 0 0 $4 , 9 3 7 , 7 0 0 $5 , 5 2 0 , 0 9 9 $6 , 1 7 9 , 6 5 0 $7 , 0 5 6 , 2 7 0 $7 , 5 5 8 , 9 0 0 $7 , 6 8 8 , 9 0 0 $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 2022 Actual 2023 Actual 2024 Actual 2025 Amended Budget 2026 Proposed budget FIRE & MEDIC 1 COMBINED 2026 PRELIMINARY BUDGET Revenues Expenditures HARBOR CLEAN-UP Work Session | October 28, 2025 | Slide 722026 Preliminary Budget Change in Expenditures from 2025: None $1 6 5 , 0 5 9 $1 1 3 , 7 7 1 $7 3 , 1 4 1 $2 , 0 5 0 , 6 0 0 $2 , 0 5 0 , 6 0 0 $2 0 7 , 6 5 3 $1 4 9 , 5 7 0 $1 0 1 , 2 4 3 $2 , 0 5 0 , 6 0 0 $2 , 0 5 0 , 6 0 0 $(500,000) $- $500,000 $1,000,000 $1,500,000 $2,000,000 2022 Actual 2023 Actual 2024 Actual 2025 Amended Budget 2026 Proposed budget HARBOR CLEAN-UP 2026 PRELIMINARY BUDGET Revenues Expenditures Fund Balance CAPITAL FUNDS Used to account for financial resources to be used for the acquisition or construction of capital facilities and projects. Work Session | October 28, 2025 | Slide 732026 Preliminary Budget GENERAL GOVERNMENT Work Session | October 28, 2025 | Slide 742026 Preliminary Budget All projects that were approved in the 2026-2031 Capital Facilities Plan are included in the 2026 Budget except the Core City Facilities Assessment. $1 , 2 7 7 , 6 9 8 $2 , 4 0 4 , 8 2 2 $4 , 7 3 4 , 1 1 1 $2 , 9 7 0 , 7 0 0 $4 , 1 0 6 , 7 0 0 $1 , 8 1 1 , 6 1 7 $2 , 4 5 4 , 0 1 7 $3 , 9 2 7 , 6 1 0 $5 , 3 1 4 , 0 0 0 $3 , 7 1 3 , 0 0 0 $- $2,000,000 $4,000,000 2022 Actual 2023 Actual 2024 Actual 2025 Amended Budget 2026 Proposed budget GOVERNMENTAL CAPITAL PROJECTS 2026 PRELMINARY BUDGET Revenues Expenditures TRANSPORTATION BENEFIT DISTRICT Work Session | October 28, 2025 | Slide 752026 Preliminary Budget All projects that were approved in the 2026-2031 Capital Facilities Plan are included in the 2026 Budget. $1 , 8 6 3 , 9 7 1 $7 , 4 0 6 , 5 1 2 $1 0 , 3 4 7 , 5 2 6 $8 , 2 8 7 , 4 0 0 $1 9 , 1 8 9 , 8 0 0 $1 , 3 7 3 , 0 1 0 $5 , 0 4 0 , 8 9 3 $8 , 5 2 9 , 6 7 8 $1 1 , 3 2 7 , 3 0 0 $2 0 , 9 1 9 , 3 0 0 $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 2022 Actual 2023 Actual 2024 Actual 2025 Amended Budget 2026 Proposed budget TRANSPORTATION BENEFIT DISTRICT FUND 2026 PRELIMINARY BUDGET Revenues Expenditures ALL UTILITY CAPITAL FUNDS Work Session | October 28, 2025 | Slide 762026 Preliminary Budget All projects that were approved in the 2026-2031 Capital Facilities Plan are included in the 2026 Budget. $6 , 3 8 2 , 7 4 3 $9 , 5 4 0 , 9 3 6 $1 5 , 6 5 8 , 7 8 8 $9 , 5 8 1 , 1 0 0 $1 3 , 2 9 6 , 0 0 0 $5 , 4 0 5 , 7 6 2 $1 8 , 1 9 8 , 7 9 2 $1 0 , 6 3 1 , 2 3 7 $1 6 , 4 6 7 , 6 0 0 $3 0 , 0 6 3 , 4 0 0 $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 2022 Actual 2023 Actual 2024 Actual 2025 Amended Budget 2026 Proposed budget UTILITY CAPITAL FUNDS 2026 PRELIMINARY BUDGETS Revenues Expenditures INTERNAL SERVICE FUNDS Account for services provided from one fund to another fund on a cost reimbursement basis. Work Session | October 28, 2025 | Slide 772026 Preliminary Budget EQUIPMENT SERVICES Work Session | October 28, 2025 | Slide 782026 Preliminary Budget Change in Expenditures from 2025: Decreased spending for vehicle replacements and minor tools and equipment is expected in 2026 in alignment with the Capital Facilities Plan. $1 , 5 8 8 , 0 6 4 $2 , 5 4 7 , 3 8 4 $3 , 4 8 4 , 6 4 4 $3 , 2 9 6 , 3 0 0 $3 , 3 5 6 , 7 0 0 $4 , 4 3 0 , 5 4 0 $2 , 8 8 8 , 2 2 5 $3 , 3 7 6 , 5 2 1 $6 , 6 3 9 , 8 0 0 $2 , 8 6 7 , 6 0 0 $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 2022 Actual 2023 Actual 2024 Actual 2025 Amended Budget 2026 Proposed budget EQUIPMENT SERVICES 2026 PRELIMINARY BUDGET Revenues Expenditures Fund Balance EQUIPMENT SERVICES Work Session | October 28, 2025 | Slide 792026 Preliminary Budget INFORMATION TECHNOLOGY Work Session | October 28, 2025 | Slide 802026 Preliminary Budget Change in Expenditures from 2025: Increased costs for software services and computer replacements citywide. Additionally, the IT Department will have fewer planned capital projects as outlined in the CFP. $2 , 5 1 3 , 5 1 9 $2 , 7 0 6 , 1 2 9 $2 , 8 5 5 , 0 0 1 $3 , 0 1 6 , 7 0 0 $3 , 1 7 3 , 9 0 0 $2 , 0 7 8 , 3 8 6 $2 , 8 3 5 , 4 1 1 $3 , 2 2 4 , 0 8 4 $5 , 0 0 0 , 0 0 0 $3 , 1 5 3 , 9 0 0 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2022 Actual 2023 Actual 2024 Actual 2025 Amended Budget 2026 Proposed budget INFORMATION TECHNOLOGY 2026 PRELIMINARY BUDGET Revenues Expenditures Fund Balance INFORMATION TECHNOLOGY Work Session | October 28, 2025 | Slide 812026 Preliminary Budget SELF INSURANCE Work Session | October 28, 2025 | Slide 822026 Preliminary Budget $5 , 6 4 1 , 5 5 8 $7 , 3 1 9 , 1 5 2 $8 , 2 8 8 , 8 8 6 $8 , 6 7 6 , 4 0 0 $9 , 0 2 1 , 2 0 0 $5 , 6 7 1 , 4 5 2 $7 , 1 2 7 , 7 4 5 $8 , 1 9 5 , 2 3 3 $8 , 6 6 7 , 1 0 0 $9 , 0 2 1 , 2 0 0 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 2022 Actual 2023 Actual 2024 Actual 2025 Amended Budget 2026 Proposed budget SELF INSURANCE 2026 PRELIMINARY BUDGET Revenues Expenditures Fund Balance FIDUCIARY & PERMENANT FUNDS Used to account for assets held by the government as a trustee or that are legally restricted. Work Session | October 28, 2025 | Slide 832026 Preliminary Budget FIREMAN’S PENSION Work Session | October 28, 2025 | Slide 842026 Preliminary Budget $( 8 5 , 8 9 4 ) $2 9 , 0 0 0 $2 0 , 0 3 6 $2 0 0 $2 0 0 $2 8 , 4 7 1 $2 7 , 9 1 8 $3 7 , 4 1 2 $4 2 , 5 0 0 $4 2 , 4 0 0 $(100,000) $(50,000) $- $50,000 $100,000 $150,000 $200,000 2022 Actual 2023 Actual 2024 Actual 2025 Amended Budget 2026 Proposed budget FIREMAN'S PENSION 2026 PRELIMINARY BUDGET Revenues Expenditures Fund Balance DEBT SERVICE FUNDS Account for the accumulation for resources and payment of long-term debt. Work Session | October 28, 2025 | Slide 852026 Preliminary Budget MOUNTAIN OF DEBT Work Session | October 28, 2025 | Slide 862026 Preliminary Budget MOUNTAIN OF DEBT Work Session | October 28, 2025 | Slide 872026 Preliminary Budget CONCLUSION Work Session | October 28, 2025 | Slide 882026 Preliminary Budget The Budget carefully reflects the visions, goals and long-term planning of Council and Community. Years of cautious budget planning have enabled the City to provide exemplary services to our community and move in the direction of building key services. The Budget demonstrates the City’s commitment to affordability, fiscal stewardship and provision of essential services. NEXT STEPS Work Session | October 28, 2025 | Slide 892026 Preliminary Budget 2026 Property Tax Presentation, Public Hearing & First Reading of Ordinance 2026 Budget Work Session - Hold 2026 Property Tax Public Hearing, Adoption of Ordinance /Resolution, 2026 Budget Public Hearing & 1st Reading of Ordinance NOV 5 NOV 12 NOV 18 DEC 2 2026 Budget Public Hearing & 2nd Reading of Ordinance QUESTIONS & DISCUSSION Staff requests consensus on any items Council would like additional information about or items that will return to Council for further consideration. Inquiry items do not require a consensus. Consensus on a potential November Work Session. Work Session | October 28, 2025 | Slide 902026 Preliminary Budget