College Place preliminary 2026 budget shows multi‑year drawdown; staff proposes utility taxes and modest rate increases
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Summary
Staff presented a preliminary 2026 budget that forecasts a multi‑year drawdown in several funds and proposed revenue measures including utility tax increases (10–13% scenarios), modest utility rate increases and a 2–3% property tax assumption to help stabilize reserves.
City staff presented the preliminary 2026 budget to the College Place City Council on Oct. 28, 2025, and described a multi‑year decline in the current expense ending fund balance and a package of revenue and cost measures under consideration to restore reserves.
Brian Carlton told council that the general (current expense) fund declined by $642,000 in 2024 and the city forecasts another $556,000 decline for 2025, totaling about a $1.2 million drop over two years. The full budget summary included large, planned capital drawdowns: roughly $5.8 million of TIF‑funded projects (including Mjolnir Road and parking lot work) and drawdowns for water projects such as Reservoir 4 and Well No. 8.
To stabilize reserves, Carlton described possible revenue measures: a 2–3% assumption in the property tax line in the draft, a recommendation to consider a utility tax increase (10–13% considered in modeling) and modest utility rate increases (3% modeled for water and wastewater; a 10–13% utility‑tax scenario for stormwater was shown). Staff modeled the combined household impact and said a single‑family average monthly bill could rise by roughly $12.20 per month under the maximum modeled package (combining rate increases and utility taxes). Carlton said no additional staffing is included in the 2026 budget and that the city would use reserve balances if necessary to meet S&P target levels.
Council members asked follow‑up questions about the assumptions, health‑care cost increases for employees, and communication strategies to explain levy and tax changes to residents. No final budget adoption occurred; staff said the draft will return for public hearings and final adoption later in the schedule.
