Olympia council directs staff to pursue hybrid budget plan combining public‑safety sales tax and altered business tax

Olympia — The Olympia City Council on Sept. 30 voted to direct staff to advance a budget-balancing approach that combines a councilmanic 0.1% public‑safety sales tax with revisions to the city’s business‑and‑occupation (B&O) tax, and to return with more detailed scenarios and reduction options in mid‑October.

City Manager Jay Birney framed the issue for council and the public, saying: “This is your really your first meeting and first touch point on the budget for the year.” Birney told the council the administration has identified a roughly $6.5 million gap in the 2026 general fund baseline and presented revenue and reduction options to close that gap.

Why it matters: The council’s decision puts a revenue path on the table that staff say could produce roughly $3.0 million a year from a full year of a 0.1% public‑safety sales tax (staff estimated $1.5 million for the partial 2026 year) plus about $1.9 million from a proposed retail B&O change as modeled. Even if both revenue options are adopted, staff told council a gap would remain and additional reductions would still be required.

What council discussed and decided: Finance staff and the city’s tax unit walked the council through the proposal options and community outreach findings. Brandy Andrews, tax and license audit lead, reviewed Olympia’s existing B&O structure and…