City Council Worksession on Budget (Mar 24, 2026)

City Council Budget Worksession Recap: What Residents Need to Know (March 24, 2026)

On March 24th, the City Council held a work session dedicated to discussing the proposed budget for the upcoming fiscal year (2026-27). This session was a crucial first step in determining how the city will allocate resources and address financial challenges, impacting everything from public safety to employee compensation. The meeting was attended by all members of the City Council, and focused on identifying spending priorities amidst a significant budget gap.

A primary challenge identified during the session was a projected $14.2 million shortfall. This gap stems from unavoidable cost increases like healthcare and retirement benefits, as well as debt payments related to the 2024 Geobond referendum which funded infrastructure improvements. Departments were initially asked to maintain their current spending levels, but rising costs and the Geobond debt service are significantly increasing overall expenses. A significant portion of the discussion centered around employee compensation, with staff recommending a "hybrid approach" – a smaller across-the-board raise (2.5%) combined with targeted salary adjustments based on a future market study to address pay disparities. The council considered three alternative scenarios, including a straightforward 3.3% across-the-board increase and a flat dollar amount raise intended to benefit lower-paid employees more significantly. No definitive decision was made on this critical issue, and further data analysis is pending.

Beyond personnel costs, the council engaged in a robust discussion regarding several key areas. The Police Department's request for increased staffing to fill vacancies was acknowledged, and the impact of a revised transit contract, resulting in an $800,000 increase, was also addressed. A particularly notable topic was the management of debt service from the 2024 Geobond referendum. Options under consideration include a full implementation of a property tax increase (estimated at 2.58 cents) or phasing it in over two years, a decision that will directly affect property owners. Finally, the Transportation and Parking Services team presented plans to optimize parking management through rate adjustments, expanded meter coverage (potentially in South Slope, pending community engagement), and a re-evaluation of the current "first hour free" policy.

While no formal votes or decisions were made during this work session, the council did direct staff to provide additional data and analysis on each proposed budget scenario. Community input was limited, but council members acknowledged concerns about the potential impact of tax increases on residents and businesses. There was a clear sentiment towards prioritizing support for lower-paid city employees and addressing pay inequities.

What's Next & How This Impacts You: The City Council will continue budget discussions at a work session on April 14th, focusing on enterprise funds and the Capital Improvement Plan. The proposed budget will be formally presented in May, followed by a public hearing and final adoption in June. These ongoing deliberations will ultimately shape the city's financial landscape for the coming year, influencing the quality of services you receive and potentially impacting your property taxes. Residents are encouraged to stay informed and participate in future public hearings as the budget process progresses.