Lacey holds public hearing on 2026 revenue sources as city projects lower beginning cash and slower new construction

City of Lacey finance staff opened a public hearing on Nov. 3, 2025 to review expected revenue sources for the 2026 budget, focusing on property-tax levies, sales tax, utility taxes, real-estate excise tax (REET) and the city’s planned use of reserves.

Troy (staff member) told the council the city’s general-fund revenue projection is about $14.7 million lower than what was presented two weeks earlier, and Chelsea (staff member) said the change is driven largely by a reduction in beginning cash/transfers and a smaller-than-expected new-construction assessed valuation from the county. Chelsea said the 2026 projected levies are $253,351 higher than 2025, with the components described as the general levy, new construction, the 1% statutory…