Monroe holds first public hearing on mid-biennial budget adjustment; council gives first reading to 2026 property tax ordinance
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Summary
City staff outlined a package of revenue and expenditure changes to meet reserve targets and cover nondiscretionary costs; council held a public hearing, heard one public comment, and approved first reading of the 2026 property tax ordinance 6-0.
Monroe held a public hearing Oct. 28 on the mayor's recommended mid-biennial budget adjustment and the first reading of the 2026 property tax ordinance. Finance staff told the City Council the adjustment updates beginning fund balances, funds non-discretionary costs, and aims to meet the city's reserve policy.
Finance Director Julie Elson said the city's target reserve policy sets aside two months of operating expenditures and a separate contingency goal of 8 percent of general fund expenses. Based on updated 2024 actuals, Elson said the budgeted ending general fund balance would be about $943,000 and that the city needs roughly $3.7 million to reach the reserve target. To reach the target she outlined a plan using contingency funds, about $1.8 million in budget modifications (keeping four positions vacant through year-end, reducing travel/training and some contracts), and drawing on REIT funding.
Elson also highlighted an 11 percent recommended increase to the water operating rate to cover higher wholesale water costs from Everett and described proposed reductions and timing changes to capital transfers to preserve operating flexibility.
During council questions, members asked whether fleet transfer reductions would affect police vehicle purchases and whether the 0.1 percent public safety tax should be directed explicitly to police rather than the general fund. Staff said they would analyze fleet-transfer impacts and return with specifics. Council Member Fisher raised optics and asked staff to report back on whether rerouting the small public safety tax to the police fund would be appropriate.
One resident who identified themself as a small-business owner urged the council to preserve economic development professional services, saying downtown businesses need that support.
Council closed the hearing and, noting the city's prior fiscal prudence, moved to first reading of the property tax ordinance. Council Member Hanford moved and Council Member Fulcher seconded approval of first reading of Ordinance 0272025, "fixing the amount of real and personal property taxes to be levied by the city for calendar year 2026," which passed on the council vote 6-0.
The council scheduled a second public hearing and potential adoption actions for Nov. 18, when it will consider final action on the budget adjustment, adoption of the property tax levy and related utility rate resolutions.
