Council reviews 2026 budget outlook as public‑safety costs outpace general‑government savings

Newcastle city staff presented an initial look at 2026 budget assumptions and the city’s sustainability model at the July 15 council meeting, flagging a growing gap between public‑safety costs and the general‑government budget.

Finance Director Lindsay Chambers told the council the employer contribution rate for PERS decreased effective July 1, providing near‑term savings that staff folded into preliminary projections. Chambers said the city also expects net savings from prior internal‑service adjustments and copier contract changes, but those savings have been outpaced by rising police and fire contract costs.

Chambers said total public safety costs — King County Sheriff’s Office contract, Bellevue Fire contract, jail and related services — have risen significantly over recent years. "We know fire and police are increasing more significantly in recent years than they have in the past," she said, and noted KCSO has deferred about $5 million in insurance costs that will be…