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HomeMy WebLinkAboutFIN 2025-07-28 Item 1C - Budget - 2026 Budget Adjustment Process DiscussionCity of Tukwila Thomas McLeod, Mayor INFORMATIONAL MEMORANDUM TO: City Council FROM: Aaron BeMiller, Finance Director CC: Thomas McLeod, Mayor & Marty Wine, City Administrator DATE: July 28, 2025 SUBJECT: Mid -Biennium Adjustment ISSUE The kickoff for the 2026 mid -biennium adjustment took place on July 15. Finance team staff provided an update on the process and timing for adjustments to the 2026 budget. BACKGROUND The City is legally required to adopt a balanced budget where resources are at least equal to budgeted expenses. The mid -biennium adjustment provides an opportunity for the City to update our assumptions made in the summer of 2024. Generally, the mid -biennium adjustment provides an opportunity to better refine revenue and expenditure estimates which were generated in the summer of 2024 for the 2026 fiscal year. We now have data available for 2026 which wasn't available in August/September 2024. Typical adjustments include updating the assumptions for COLA, healthcare benefits, and retirement rates, budgeting for any approved initiatives in 2025 that continue into 2026, and other items. The Council's role in the mid -biennium adjustment is the same as during a regular biennial budget process. The Mayor will provide his recommendations for changes to the adopted 2026 budget and Council will hold deliberations on the Mayor's budget and ultimately vote on a) the updated 2026 budget and, b) the 2026 property tax levy. DISCUSSION This is a discussion item only, no Committee action is required. Staff will be available to answer any questions/clarifications from Committee members. FINANCIAL IMPACT Discussion item only. There is no financial impact associated with this agenda item. RECOMMENDATION Discussion item only. There is no recommendation currently for future action. ATTACHMENTS None. K