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Battle Ground previews 2026 budget as staff warns sales tax may fall and property levy gain is small
Summary
Finance staff outlined a compressed 2026 budget timeline, projected revenues (property ~$4.5M, sales ~$6.5M, utilities ~$3.2M), and options including a 1% levy increase (estimated $43,000) while recommending conservative -1% sales-tax forecasting due to construction sensitivity.
Battle Ground City finance staff opened the council iscussion on Sept. 15 with a high-level kickoff for the 2026 preliminary budget, walking through timelines, revenue assumptions and options for council direction.
Megan, the city—inance lead, told council the budget calendar has three phases: departments submitted requests in May–July, council study sessions are occurring in September–October, and the city must hold three public hearings and adopt a budget by December. "This is very, very high level," Megan said, asking council to identify areas they want examined more closely before staff publishes the preliminary packet next week.
On revenue, Megan said taxes are expected to continue to be Battle Ground's primary funding source. She gave preliminary 2026 estimates of about $4.5 million in property tax, $6.5 million in sales tax and roughly $3.2 million in utility taxes. Megan explained levy mechanics and noted the council has the option to adopt a 1% levy increase, which staff estimates would raise roughly $43,000. New construction assessed value is projected to add roughly $171,000 to the levy base.
Megan cautioned that sales-tax receipts in Battle Ground are highly dependent on construction activity. "A lot of our sales tax in the city of Battle Ground actually is derived from the construction industry," she said, and staff modeled a slightly negative sales-tax change (-1%) for 2026 to avoid overestimating revenue.
Staff also presented development-related revenue projections — about 188 single-family homes and one multifamily project (95 units) potentially in the pipeline — and preliminary impact-fee and SDC estimates: general-fund development revenue about $1.2 million, utility SDCs about $5.1 million and park impact fees about $1.2 million. Megan said staff will bring the comprehensive preliminary budget packet to council early next week and adjust figures after council direction.
On utilities and fees, staff recommended modest increases tied to CPI and cost recovery: a 2.7% fee-schedule increase, and utility-rate changes roughly water +4%, sewer +7%, storm drainage +3.5%, which staff said would raise the average monthly bill from about $109 to $115.
Council members asked for additional inflation-adjusted graphics and for staff to highlight the specific line items councilors want explored in depth. Megan said staff will update the materials and that budget modifications remain possible before final adoption in December.
What happens next: staff will publish the preliminary budget packet and return to council with more detailed line-item information, plus an inflation-adjusted chart that council requested.
