Jeff Albrecht, the city’s director of finance and administrative services, told the Pullman City Council on Oct. 14 that general fund revenues have been largely flat and that the preliminary 2026 revenue budget is about $29 million while expenses are currently projected at $31.5 million.

Albrecht said the city has seen slowing growth in property and sales tax receipts after several years of strong sales-tax gains. He noted specific revenue changes: property tax is constrained by the state limit on increases to 1% on existing property plus any new construction; sales tax dipped in 2024 and is tracking below 2023; admissions tax revenue has fallen as local event and movie-theater receipts declined; and building-permit revenue has dropped significantly in 2025.

Albrecht walked the council through the composition of the general fund and emphasized that roughly 60–76% of general fund revenue is tax-derived. He said the two main risks to the revenue forecast are continued weak building-permit activity (which affects future construction and tax base growth) and flat sales-tax receipts.

He highlighted key calendar and legal deadlines tied to levy-setting: preliminary new-construction estimates from the county (Albrecht cited a preliminary $8 million), the county filing deadline of Nov. 15 and the state deadline to conclude the levy-setting process by Nov. 30. He said the most recent inflation-of-values figure (IPD) used in levy calculations was 2.44%, but the statutory 1% cap on existing property increases remains the principal constraint.

Council discussion focused on hard choices ahead; Mayor Benjamin and several council members said the city must decide whether to reduce spending, shift funding among projects or pursue other revenue options in the upcoming budget cycle. A council member reminded residents that assessed-value disputes can be appealed to the county assessor.

No public speakers spoke during the revenue public hearing; the council closed the hearing and will consider levy-setting motions in the coming weeks.