Issaquah holds public hearings on 2026 property tax levy and mid‑biennium budget adjustments; hearings continued to Nov. 17

The Issaquah City Council held two statutorily required public hearings on Oct. 20: one on the proposed 2026 property tax levy under RCW 84.55 and another on the 2025–26 mid‑biennium budget adjustment.

Budget Manager Susie Moncel presented the property tax hearing, explaining that RCW 84.55 requires a jurisdiction levy public hearing before adopting property tax levies. Moncel said the city’s base levy for 2026 is approximately $10.8 million and that the allowable 1% increase plus new construction would produce a total levy forecast of about $11.0 million. Using the city’s forecasted median home values, Moncel showed illustrative household impacts: an estimated regular levy for the median household decreasing from about $804 to $652 and a voted (excess) levy of about $92, for a combined illustrative total of about $744 for the median house in the presented scenario. Moncel noted that only about $0.09 of every property tax dollar goes to the city and that final action on the levy will return to council on Nov. 17.

No members of the public signed up to speak during the property tax hearing and the mayor closed the hearing.

Moncel then presented the mid‑biennium budget adjustment, summarizing that the general fund remains operationally balanced but that the forecasted unrestricted ending fund balance is projected to decline to about 7% of expenditures by the end of 2026, driven by prior budgeted uses of fund balance, an ARPA correction and proposed adjustments totaling roughly $1.6 million for 2025–26. The proposed adjustments the city presented include previously authorized items (bucket truck, dispatcher position, approved capital projects), grant adjustments (video analytics, solar PV and senior center storage), and new spending proposals such as employee leave payouts, increases in public defense contracts, street operating needs, parks positions and an affordable housing study. The capital program adjustments include the Newport Sewer relocation and Highwood reservoir retrofit (previously authorized) and a pavement preservation project.

During the budget hearing, Corby Casler of the Downtown Issaquah Association spoke and asked the council to reconsider proposed reductions in DIA funding and to look again at the Main Street tax credit program’s local allocation. Council agreed to keep the budget public hearing open so the public can comment on changes coming out of the Oct. 27 special meeting; the hearing will be continued to Nov. 17.

The council did not take final action on either item on Oct. 20; both hearings will return for further consideration and potential votes at later meetings.