Kenmore council retreat materials laid out fallback budget options if no revenue measure moves forward

What the records say

Materials for the City Council Retreat on Saturday, March 21, 2026 included a 'Fallback Approaches' section under Fiscal Issues and Strategies ¹. The section was tied to a forecasted operating deficit across the General Fund and Streets Fund, and asked, at a high level, what approach the city should take if no revenue measure goes forward or one does not pass ¹. The materials listed three options: balance the operating budget starting in FY2027-2028 through eliminating special projects, cutting in reverse order of priorities, broad service-level reductions, and efficiencies; proceed as is in 2027-2028, spend down reserves, then make bigger changes in 2029-2030; or lower reserve requirements ¹. The same materials also outlined councilmanic revenue options, including surface water, cable, public safety sales tax, and transportation sales tax increases, with estimated revenue amounts ¹.

• The 'Fallback Approaches' section was tied to a forecasted operating deficit in the General Fund and Streets Fund, and framed options for if no revenue measure goes forward or one does not pass.
• The listed options included balancing the operating budget starting in FY2027-2028 by eliminating special projects, cutting in reverse order of priorities, broad service-level reductions, and efficiencies; spending down reserves before bigger changes in 2029-2030; or lowering reserve requirements.
• The same materials outlined councilmanic revenue options — surface water, cable, public safety sales tax, and transportation sales tax — with estimated annual revenues such as $425K per 0.1% sales tax increase and $400K from a 6% property tax cap increase.
• The retreat agenda scheduled the Fiscal Issues and Strategies session for 1:45 PM on March 21, 2026, with a fallback presentation added March 18; the records do not establish what was decided.

Why it matters

The fallback options indicate residents could see reduced services, drawn-down reserves, or lowered reserve requirements in future budget cycles if the city does not secure new revenue ¹. The available records document what was scheduled and presented for the retreat; they do not establish the meeting's outcome or any council decision ¹.

What changed / what's next

• Pre-meeting retreat materials documented high-level fallback budget options — service reductions, reserve drawdown, or lower reserve requirements — contingent on no revenue measure going forward or passing ¹.
• The materials present the fallback options at a high level only; they do not specify which services would be cut, the exact size of the forecasted deficit, or a preferred option ¹. The records document the retreat agenda and presentation materials, not the meeting's outcome or any subsequent council action ¹.
• The available records do not establish the meeting's outcome.