Kenmore forecast showed reserves dipping below limit by 2028–2029; revenue options laid out for council

What the records say

Materials for the Feb. 23, 2026 Kenmore City Council special meeting include a staff presentation on the city's financial forecast and potential revenue measures. The presentation projects total biennial general fund revenue of $35.2 million against expenses of $38.1 million, and shows the combined general and streets funds reserve limit being crossed between late 2028 and late 2029 depending on the scenario (regular expenses, high expense escalation, or recession). Staff laid out revenue options drawn from the 2024 Financial Sustainability Plan Task Force, including councilmanic actions (a 0.1% public safety sales tax generating about $425K, a 0.1% transportation sales tax, raising the cable tax, and increasing KAPE ticket costs) and voter-required ballot measures (a Metropolitan Park District, a public safety levy lid lift, or a combined public safety and human services levy lid lift). A next-steps slide recommends implementing available councilmanic options and pursuing one or two ballot measures; this is a staff recommendation, not a recorded council decision. The packet contains the agenda and the presentation but no minutes, so the meeting's outcome is not established. ¹

• The forecast shows total biennial general fund revenue of $35.2M versus expenses of $38.1M, with the combined general and streets funds reserve limit crossed between late 2028 and late 2029 across four scenarios (regular expenses, high escalation, recession variants). ¹
• Councilmanic revenue options presented include a 0.1% public safety sales tax (~$425K), a 0.1% transportation sales tax (~$425K), a cable tax increase (~$175K at $50), and KAPE ticket cost increases; property tax levy caps are described as already at legal maximum absent voter approval. ¹
• Ballot-measure options requiring voter approval include a Metropolitan Park District, a public safety levy lid lift, and a combined public safety plus human services levy lid lift; a 2024 task force also recommended a targeted levy lift (~$1.12M) and securing a public safety sales tax before King County takes it. ¹
• Staff's next-steps slide recommends implementing available councilmanic options and pursuing one or two ballot measures (an MPD and/or a public safety measure), with continued discussion of cost reductions and efficiencies. ¹

Why it matters

The forecast indicates the city's reserves are projected to fall below policy limits within a few years under current assumptions, which frames upcoming decisions about taxes, fees, and service levels. The specific options on the table — a possible public safety sales tax, a parks-focused Metropolitan Park District, or property tax levy lifts — would directly affect resident costs if pursued to a ballot or adopted councilmanically. Residents watching for a 2026 ballot measure or fee changes should expect follow-up at the March 21–22 council retreat and subsequent meetings listed in the agenda. ¹

What changed / what's next

• The Feb. 23 study session added a financial forecast update and a discussion of potential revenue measure options, presented by City Manager Teri Killgore and Finance & Administration Director Melinda Merrell; the accompanying presentation documents the forecast figures and options above. ¹
• The packet contains no minutes or vote record, so whether council gave any direction on Feb. 23 is not established; the agenda lists a March 21–22 council retreat covering priorities and fiscal approach, and regular meetings March 9 and March 16. ¹
• Whether the city moves a public safety sales tax or property measure toward a 2026 ballot, and how cost-reduction levers are weighed, would show up in later council agendas. ¹
• The available records do not establish the meeting's outcome.