Puyallup finance director outlines 2026 mid‑biennium budget forecast; recommends modest sales tax adjustment

Barbara Lopez, Puyallup finance director, told the City Council during a July 15 study session that the city’s 2026 mid‑biennium budget update would include revised property tax and sales tax forecasts and options for one‑time funding.

Lopez said the mid‑biennium review is “required by RCW” and is intended to adjust the adopted biennial budget only where new information warrants change. She told councilmembers the city’s estimated 2026 property tax levy will be higher than the amount budgeted last year and that she recommends moving some revenue assumptions from sales tax to property tax in the revised projection.

The recommendation matters because it affects the city’s projected operating revenue and the pool of one‑time funds available for Tier 3 projects, Lopez said. She also reviewed lodging tax availability and a separate fund created by House Bill 1406 for affordable housing.

Lopez gave numerical context: the city’s adopted 2026 property tax budget is “just over $11,000,000,” and staff now estimate…