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HomeMy WebLinkAboutFIN 2025-08-25 Item 1B - Budget - 2026 Mid-Biennium Budget Adjustment DiscussionCity of Tukwila Thomas McLeod, Mayor INFORMATIONAL MEMORANDUM TO: Finance and Governance Committee FROM: Aaron BeMiller, Finance Director CC: Thomas McLeod, Mayor & Marty Wine, City Administrator DATE: August 25, 2025 SUBJECT: 2026 Mid -biennium Budget Process ISSUE As provided in State law, the City Council adopts a biennial budget every two years, with the new biennial budget beginning on an odd numbered year. Like many Cities, the biennial budget adopted by City Council is constructed and viewed as two one-year budgets. Between the first year of the current budget (2025) and the second year (2026), the Mayor will propose changes to the 2026 budget. This process is called the Mid -biennium Adjustment and is important for adjusting the 2026 budget for any known and necessary changes from the time the 2026 budget was adopted in late 2024. These changes include but are not limited to adjusting CPI, healthcare, and retirement rate assumptions, carry-over or new initiatives that were unplanned at the time of adoption, and any other updates necessary for City operations/obligations. BACKGROUND The Mid -biennium adjustment is underway and below is a draft timeline for the Council process: 2026 Mid -Biennium Adjustment Ordinance 08/25/25 — FIN Committee — Discussion only 10/06/25 — Regular Meeting — Mayor's presents his 2026 Proposed budget changes 10/20/25 — Regular Meeting — 1st Public Hearing & discussion 10/27/25 — FIN Committee — Discussion only 11/03/25 — Regular Meeting — 2nd Public Hearing & discussion 11/10/25 — COW Meeting — Further discussion opportunity 11/17/25 — Regular Meeting — Further discussion opportunity & potential adoption 11/24/25 — Special Meeting (if necessary) — Budget adoption 2026 Property Tax Collection Ordinance 10/20/25 — Regular Meeting — Public Hearing 10/27/25 — FIN Committee — draft ordinance for review 11/10/25 — COW Meeting —Discussion 11/17/25 — Regular Meeting - Adoption 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. 5